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1873: The Rothschilds, the First Great Depression, and the Making of the Modern World
Not yet published
Expected 2 Jun 26From the author of the Pulitzer-Prize-winning Lords of Finance, another magnificent and timely reckoning with the first truly global financial calamity through the prism of the famous banking family at the center of the whirlwind
Over the course of the 1850s and 1860s, during the first era of globalization, the world experienced an unprecedented economic boom. Fueling this expansion was an explosion in borrowing through the global bond market, which provided financing for the century's most costly and transformative the railroad. At the hub of the bond market stood one family—the Rothschilds. With offices in London, Paris, Vienna, and Frankfurt, and through their agent August Belmont in New York, the Rothschilds were arguably the wealthiest and most powerful family in world history, possessing an unmatched ability to mobilize capital on a massive scale and wielding unparalleled political influence.
The boom predictably swelled into a series of bubbles that burst simultaneously in the early 1870s, cascading from one country to the next across Europe and the world. Governments of the major economic powers responded by blundering amid the tumult into a precipitous remaking of the global currency system—a move that not only exacerbated the ensuing economic collapse but set the stage for a prolonged twenty-year period of punitive deflation. This deflation sparked waves of populism and anti-globalization sentiment.
As Liaquat Ahamed shows us in this enthralling history, the crisis of 1873 was, among other things, a death blow to Reconstruction in the United States and the proximate cause of the Ottoman Empire's slow death spiral and Britain's takeover of Egypt. Ironically, as markets grew irrationally frenzied, the Rothschilds had presciently managed to protect themselves from the worst financial effects. Nevertheless, when the deluge came, they were viciously scapegoated everywhere as part of a wider spasm of hatred directed at "Jewish finance," a strain of antisemitism that would come to full evil flower in Austria and Germany during the 20th century.
1873 is a marvelous birds-eye reckoning with the full dimension of the crisis, from its build-up to its long aftermath. Through the Rothschilds and a cast of other eyewitnesses, including Karl Marx and Mark Twain making cameos at crucial moments, we have witnesses on the ground to give us the human perspective. And we have a great and brilliant financial historian’s firm grasp of the larger forces at play to create a truly cohesive global narrative with thrilling explanatory power.
Over the course of the 1850s and 1860s, during the first era of globalization, the world experienced an unprecedented economic boom. Fueling this expansion was an explosion in borrowing through the global bond market, which provided financing for the century's most costly and transformative the railroad. At the hub of the bond market stood one family—the Rothschilds. With offices in London, Paris, Vienna, and Frankfurt, and through their agent August Belmont in New York, the Rothschilds were arguably the wealthiest and most powerful family in world history, possessing an unmatched ability to mobilize capital on a massive scale and wielding unparalleled political influence.
The boom predictably swelled into a series of bubbles that burst simultaneously in the early 1870s, cascading from one country to the next across Europe and the world. Governments of the major economic powers responded by blundering amid the tumult into a precipitous remaking of the global currency system—a move that not only exacerbated the ensuing economic collapse but set the stage for a prolonged twenty-year period of punitive deflation. This deflation sparked waves of populism and anti-globalization sentiment.
As Liaquat Ahamed shows us in this enthralling history, the crisis of 1873 was, among other things, a death blow to Reconstruction in the United States and the proximate cause of the Ottoman Empire's slow death spiral and Britain's takeover of Egypt. Ironically, as markets grew irrationally frenzied, the Rothschilds had presciently managed to protect themselves from the worst financial effects. Nevertheless, when the deluge came, they were viciously scapegoated everywhere as part of a wider spasm of hatred directed at "Jewish finance," a strain of antisemitism that would come to full evil flower in Austria and Germany during the 20th century.
1873 is a marvelous birds-eye reckoning with the full dimension of the crisis, from its build-up to its long aftermath. Through the Rothschilds and a cast of other eyewitnesses, including Karl Marx and Mark Twain making cameos at crucial moments, we have witnesses on the ground to give us the human perspective. And we have a great and brilliant financial historian’s firm grasp of the larger forces at play to create a truly cohesive global narrative with thrilling explanatory power.
- GenresHistoryNonfiction
368 pages, Hardcover
Expected publication June 2, 2026
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261 people want to read
About the author
Liaquat Ahamed
9 books166 followersLiaquat Ahamed has been a professional investment manager for 25 years. He has worked at the World Bank in Washington, D.C., and the New York based partnership of Fischer Francis Trees and Watts, where he served as Chief Executive.
He is currently an advisor to several hedge fund groups, including the Rock Creek Group and the Rohatyn Group, is a director of Aspen Insurance Co., and is on the board of Trustees of the Brookings Institution. He has degrees in economics from Harvard and Cambridge Universities.
He is currently an advisor to several hedge fund groups, including the Rock Creek Group and the Rohatyn Group, is a director of Aspen Insurance Co., and is on the board of Trustees of the Brookings Institution. He has degrees in economics from Harvard and Cambridge Universities.
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Displaying 1 - 2 of 2 reviews
Review of advance copy received from NetGalley
I enjoyed this book. The subject is fascinating and I liked the biographical information. The tone of the writing was conversational, helped along by the great cartoons, and I thought that Ahamed did a reasonable job of keeping the information comprehensible for a lay audience. Although the name Rothschilds is in the title, the book really encompasses a lot more than just this famous family. I also liked the way Ahamed addressed antisemitism, touching on it when appropriate but not overdoing it. Overall, the book was well worth reading. Thank you to Netgalley and The Penguin Press for the advance reader copy.
April 26, 2026
An information, easy to read book describing what we in the US know as the Panic of 1873 but as the author effectively shows here, was a global financial crisis with an impact on the rest of the nineteenth century and beyond. Recommend for those who read 1929 and are into economic history in general. Thanks to Penguin Press and NetGalley for the opportunity to read and review an ARC of this book.
Displaying 1 - 2 of 2 reviews