Chinese Reorganization Gold Loan of 1913

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Chinese Reorganization Gold Loan of 1913

In our 34 years of specializing in collectibles stocks and bonds, we have had the good fortune of buying and selling many historic and especially graphic bonds. The Reorganization bonds truly stand out for so many reasons. We are proud to offer the largest inventory of these bonds available today. Over 4,700 pieces of both the 20 Pound and 100 Pound denominations.

  1. Superb Graphics including 3 exceptional vignettes.
  2. Outstanding quality engraved printing by Waterlow & Sons, London
  3. Rich in History.
  4. Great colors of Green, Brown, and Blue.
  5. International appeal as England, France, Germany, Russia, and Japan were all involved.
  6. Text in 4 languages.
  7. 4 Denominations.
  8. Extensive details at back related to quantities issued, etc.

The following is from “Historic Foreign Bonds of China by John M. Thomson just published 2012.

The Reorgansation Gold Loan of 1913 was for the capital sum of £25,000,000. The loan was authorised by Presidential Order of 22nd April, 1913 officially communicated by the Wai Chiao Pu to the Ministers in Peking of Great Britain, Germany, France, Russia, and Japan. (The Wai Chiao Pu was the Ministry of Foreign Affairs of the government of the Republic of China).

The newly appointed President of the Republic of China, Yuan Shih Kai initially approached Britain, France, Germany, and United States of America seeking a substantial loan to assist the fledgling government of the Republic of China. Later this group was expanded to include Japan and Russia, but eventually the U.S. withdrew from participation, leaving five countries which agreed to assist the Chinese Government with financial aid.

The principal financial institutions which participated in the loan arrangements were the Hongkong & Shanghai Banking Corporation, Deuthsch-Asiatiche Bank, Banque de l’Indo Chine, and Russian Asiatic Bank.

The Yokohama Specie Bank participated on behalf of Japan, but did not issue separate bonds, countersigned by the bank. Arrangements were made as to convertibility into Japnanese Yen of the bearer bonds issued to by other four issuing banks. The banks all received 6% commission for handling this loan and the capital amounts allocated to each bank together with bonds issued are detailed in the data below:

  • Hongkong & Shanghai Banking Corp. £7,416,000
  • Deutsch-Asicatiche Bank £6,000,000
  • Banque de l”Indo-Chine £7,416,660
  • Russian Asiatic Bank £2,777,780
  • Russian Asiatic Bank (Belgium) £1,388,880

Purpose of the Gold Reorganization Loan

The purpose of the loan was to enable the new government of the Republic of China to meet financial liabilities inherited from the previous Chinese Imperial Government, for the reorganization of government institutions and to meet the administrative costs.

As an interesting footnote to this loan, Mr. M. E. Weatherall, who was a senior official of the Chinese Maritime Customs Service in 1921 was quoted in the publication “Wayfoong” as making the following observation.

“I believe that I am correct in saying that the greater part, if not all of the reorganization loan of 1913 was accounted for by statements and vouchers, but in actual fact very little of it was ever applied to the purposes for which it was lent. It disappeared mysteriously and nobody knows where it has gone.”

It should always be stressed that we sell these bonds for their historical, graphic, and collectible merits only. We always make it clear (though these bonds are uncanceled) that all Chinese bonds are not negotiable. On the other hand, these are the very same bonds that are so sought after and popular. There is absolutely no difference. We sell all these Chinese bonds with accompanying PASS-CO authentications.