Conversion Office for German Foreign Debts - 1936 dated $1,000 Uncanceled Bond - Very Popular (Uncanceled)

$1,000 Uncanceled 3% Dollar Bond printed by Reichsdruckerei-Berlin. Coupons remain.

This is a 3% bond from the Conversion Office for German Foreign Debts. To currency collectors, the notes issued by this agency are highly prized and command hundreds of dollars - when available. This office was the one that handled Confiscated Jewish property and settled Nazi Government debt as the Jews left Germany to immigrate or to be Murdered. In 1936, in need of hard cash, they issued these bonds in the USA to help finance their participation in Holocaust related activity. The bonds are embossed with the Nazi seal of this office. Dual English and German Text. Size 10 inch x 15.5 inch. Very rare.

The Conversion Office for German Foreign Debts (Konversionskasse für deutsche Auslandsschulden), established in 1933 under the supervision of the Reichsbank, played a crucial role in Germany’s economic history during the interwar period. Its primary function was to manage Germany’s substantial external debt obligations. The office facilitated the conversion of Reichsmarks, the currency of Germany, into foreign currencies for international creditors. This conversion often involved reduced interest rates or deferred payment schedules.

One notable example of this office’s work is the 1936-dated $1,000 bond. This bond, printed in Berlin and sold in the United States, typically offered a 3% interest rate. It was often adorned with the Reichsbank seal or, on later issues, the Nazi eagle and swastika, symbolizing the regime’s control over foreign exchange and financial policy during that era.

Uncanceled, or “uncancelled,” 1936 bonds hold significant value for collectors. Unlike other bonds that were redeemed or invalidated by the German government during or after World War II, these uncanceled bonds remained in their original form. They represent the desperate financial maneuvers of the German government to secure hard foreign currency while simultaneously defaulting on older international obligations.

Following World War II, these debts were largely settled through the 1953 London Debt Agreement. However, the uncanceled 1936 bonds persist as rare witnesses to pre-war Nazi financial strategies and the intricate legal battles surrounding foreign bonds in the 1930s.

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