1873: The Rothschilds, the First Great Depression, and the Making of the Modern World

“A lively and compelling account . . . The cumulative effect is impressive. . . . Ahamed tells his story with an easy fluency and a high velocity.” —The New York Times Book Review

“Superb . . . Ahamed thrillingly brings back to life a boom not unlike today's . . . In the process, he illuminates new ways of thinking about finance.” —Financial Times

Named a Most Anticipated Book of 2026 by Literary Hub

From the author of the Pulitzer Prize–winning Lords of Finance, a magnificent and timely reckoning with the first truly global financial calamity and 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 the global bond market, at the hub of which stood one family—the Rothschilds, arguably the wealthiest banking family in history. While the giant sums of capital provided through the bond market built the railroads, the century’s most transformative investments, the money raised also unleashed a frenzy of speculation, massive overinvestment, and wasteful borrowing by governments.

With excessive euphoria leading to disappointed expectations, in the early 1870s the bubble burst. Stock markets from Vienna to New York crashed, and dozens of railroads and many governments defaulted. Financial officials responded by blundering into a precipitous remaking of the global currency system—exacerbating the ensuing economic collapse and setting the stage for decades of a punitive deflation that sparked waves of anti-globalist populism. 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. Ironically, though the Rothschilds had presciently kept a low profile during the bubble, when the deluge came, they were viciously scapegoated as part of a wider hatred directed at “Jewish finance,” a strain of antisemitism that would come to full evil flower during the twentieth century.

1873 is a bird’s-eye reckoning with the full dimension of the crisis, from its buildup to its long aftermath. The Rothschilds and a cast of other witnesses give us the human perspective. And we have a brilliant financial historian’s grasp of the larger forces at play, resulting in a global narrative with thrilling explanatory power.