Napoleon Escapes and Rothschild Makes a Killing
Napoleon escapes from his banishment in Elba, an Island off the coast of Italy, and returned to Paris. By March Napoleon had equipped an army with the help of borrowed money from the Eubard Banking House of Paris.
"When a government is dependent upon bankers for money, they and not the leaders of the government control the situation, since the hand that gives is above the hand that takes... Money has no motherland; financiers are without patriotism and without decency; their sole object is gain." Napoleon Bonaparte
On June 18th, 74,000 French troops led by Napoleon, sizing up to meet 67,000 British and other European Troops 200 miles NE of Paris.
Nathan Rothschild knowing that information is power stationed his trusted agent named Rothworth near the battlefield. As soon as the battle was over Rothworth quickly returned to London, delivering the news to Rothschild 24 hours ahead of Wellington's courier. A victory by Napoleon would have devastated Britain's financial system. Nathan stationed himself in his usual place next to an ancient pillar in the stock market. Knowing he would be observed he hung his head and began openly to sell huge numbers of British Government Bonds. Believing this to mean that Napoleon must have won, everyone started to sell their British Bonds as well. The bottom fell out of the market. Rothschild had his agents buying up all the hugely devalued bonds.
US forces destroyed the Nichols Fort in Spanish territory, Florida.
Congress once again chartered a central bank, the Second Bank of the United States.
The first president of the Second Bank was William Jones. Jones had been Secretary of the Navy and later Acting Secretary of the Treasury during the War of 1812. His tenure as Secretary of the Treasury was marked by mismanagement of finances. The Second Bank started out with $35 million in capital, a fifth of which was provided by the federal government. The Bank was to pay the U.S. government $1.5 million per year for its franchise.
The Bank was authorized to issue as many bank notes as it needed, but was required to be able to pay specie for currency on demand. In addition, the Bank was exempted from taxation by any state. In return, the Bank performed transactions for the government at no charge. The government would appoint five of its twenty-five directors. The Secretary of the Treasury had the right to remove any government deposits, after presenting the reasons for withdrawal to Congress. In the first three years of operation the Bank issued more notes than could be backed by specie.
In the next years two state governments tried to prohibit the establishment of branches of the Bank of the United States in their states and six others tried to levy prohibitive taxes on these branches to discourage their operation.