the world of private banking
the world of private banking
the world of private banking
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PRIVAtE BANKERS AND PHILANtHROpy 253<br />
firm’s facilities for making transactions. Thereafter, he built his fortunes on <strong>the</strong><br />
finance <strong>of</strong> railway construction, including <strong>the</strong> building <strong>of</strong> <strong>the</strong> Orient Express line.<br />
He faced accusations <strong>of</strong> dubious practice but <strong>the</strong>y were never proved. By 1890,<br />
besides his huge railway interests, <strong>banking</strong> houses and a number <strong>of</strong> industrial<br />
firms, Hirsch owned vast estates in Austria-Hungary and France and was one <strong>of</strong><br />
<strong>the</strong> wealthiest men <strong>of</strong> his day, with assets whose worth was estimated at between<br />
16 and 30 million pounds sterling – that estimates were so much at variance<br />
indicates <strong>the</strong> scale and complexity <strong>of</strong> his operations, which probably no-one but<br />
himself could fully comprehend. He worked sometimes in association with o<strong>the</strong>r<br />
financiers, including, in Britain, Ernest Cassel, whose early career he appears to<br />
have nurtured, but <strong>the</strong> details <strong>of</strong> such associations remain mysterious. His personal<br />
financial activities within Britain appear to have been few and no information is<br />
known about <strong>the</strong>m. He attributed his success to mastery <strong>of</strong> detail, economy in<br />
small things and close personal watch over his transactions, which he combined<br />
with inexhaustible energy and industry and undeniable financial flair. His working<br />
day typically began at 5 a m. and lasted far into <strong>the</strong> night.<br />
He was a well-known and ubiquitous member <strong>of</strong> <strong>the</strong> ‘smart set’ in Paris, <strong>the</strong><br />
South <strong>of</strong> France and London. He was a lavish host, with homes in London, France<br />
and Hungary, though he was personally frugal, as was his wife. Every year he came<br />
to London for <strong>the</strong> Season. He belonged to <strong>the</strong> circle <strong>of</strong> <strong>the</strong> Prince <strong>of</strong> Wales and<br />
shared his interest in horse-racing. His racing stables were famous and his colours<br />
were <strong>of</strong>ten successful. Like many <strong>of</strong> Edward’s circle, he was more popularly<br />
known in Britain for his activities on <strong>the</strong> turf (and indeed for his philanthropy) than<br />
for his business dealings. He was elected as a foreign member <strong>of</strong> <strong>the</strong> Turf Club.<br />
This followed his rejection by <strong>the</strong> Jockey Club in Paris, in response to which he<br />
purchased <strong>the</strong> Club’s premises and evicted it. Thereafter he lived more in London<br />
than in Paris. It was not well known that his winnings on <strong>the</strong> English turf were<br />
always donated to London hospitals, <strong>of</strong>ten through <strong>the</strong> Prince <strong>of</strong> Wales’ Fund. His<br />
Jewish Chronicle obituary retailed that he liked to tell friends that his horses ‘raced<br />
for charity’. Substantial sums were involved: £7,000 in 1891, £35,000 in 1892.<br />
When in 1893 his horses won only £7,500 he doubled <strong>the</strong> amount before giving it<br />
to <strong>the</strong> hospitals, saying that <strong>the</strong>y should not suffer for <strong>the</strong> poor performance <strong>of</strong> his<br />
stable. Over <strong>the</strong> years he gave some £100,000 in total to <strong>the</strong> hospitals.<br />
His wife, Clara, took little pleasure in <strong>the</strong> social scene, though she <strong>of</strong>ten<br />
travelled with him. She had more interest in philanthropic activity, especially after<br />
<strong>the</strong> death from pneumonia <strong>of</strong> <strong>the</strong>ir only son Lucien (born 1856) in 1887. The<br />
parents had previously lost <strong>the</strong>ir only o<strong>the</strong>r child, a daughter, in infancy and were<br />
inconsolable. Shortly <strong>the</strong>reafter, Hirsch retired from business and both devoted<br />
<strong>the</strong>mselves to humanitarian causes. Apparently he wrote in response to a letter<br />
<strong>of</strong> condolence: ‘My son I have lost, but not my heir, humanity is my heir’. 24<br />
Retirement or semi-retirement from business to devote time and accumulated<br />
24<br />
S. Adler-Rudel, ‘Moritz Baron Hirsch. Pr<strong>of</strong>ile <strong>of</strong> a Great Philanthropist’, Leo Baeck<br />
Yearbook, 1971, p. 39.