The Bauer’s goldsmith in Frankfurt was one of the first to start issuing more
Notes than they had gold. Because they were holding many client’s gold, the
Bauer’s assumed that they could lend out Notes representing gold that was not
theirs. The Bauer’s changed their name to Rothschild, reflecting the red shied
above the door to their goldsmith store in Frankfurt.
Mayer Amschel Rothschild 1743-1812 sent his five sons to the major markets in
Europe: Nathan to London; Amschel in Frankfort; Salomon to Vienna; Carl to
Napoli; James to Prague