A Banker in the Ottoman Empire on the Eve of World War I: Sir Ernest Cassel and His Activities

Abstract

This study focuses on the activities of Sir Ernest Cassel, one of the key actors in the international financial-political landscape leading up to World War I. Operating between the late 19th century and the early 20^th century, Cassel established an extensive business network spanning from Japan to Egypt and from Uruguay to Russia, emerging as a globally influential banker. While this article examines Cassel’s global financial operations, its primary focus is on his activities within the Ottoman Empire. In the years preceding World War I, the increasing French and German influence in the Ottoman financial sector raised concerns for Britain, which sought to protect and expand its interests in the region. As Britain reassessed its economic and political ties with the Ottoman Empire, it intensified its presence in Ottoman financial affairs. At this juncture, Cassel, a figure with strong ties to the British aristocracy and business circles, played a pivotal role. In 1909, he led the establishment of the National Bank of Turkey, a move aligned with Britain’s strategy to counterbalance the growing financial influence of France and Germany in the empire. Acting as a key proponent of British interests, Cassel became a dominant figure in the Ottoman financial sector, securing major projects such as loans to the Istanbul Municipality, the modernization of the ports of Trabzon and Samsun, and the financing of the Reşadiye Dreadnought. Additionally, Ottoman petroleum resources, constituted another area of Cassel’s investments. This study also examines Cassel’s involvement in the Turkish Petroleum Company and the strategic maneuvers he executed in alignment with British state interests.