Rhine-Westphalia Electric Power Corporation - 7% 1925 $500 German Gold Bond
Inv# FB5172 Bond
$500, 7%, Gold Bond. Very Rare Denomination.
The Rhine-Westphalia Electric Power Corporation (Rheinisch-Westfälisches Elektrizitätswerk or RWE) 7% 1925 $500 Gold Bond was part of a significant international financing effort, often amounting to $10,000,000. This effort aimed to expand one of Europe’s largest utility systems. Issued in November 1925, these bonds were marketed in the United States by firms such as the National City Company. The primary purpose of this marketing was to finance capital improvements for the firm, which was heavily backed by German municipalities and the Free State of Prussia. Despite broader currency issues, the bonds, due in 1950, were highly sought after and heavily traded due to the firm’s strong position in the post-war German industrial landscape.
A bond is a document of title for a loan. Bonds are issued, not only by businesses, but also by national, state or city governments, or other public bodies, or sometimes by individuals. Bonds are a loan to the company or other body. They are normally repayable within a stated period of time. Bonds earn interest at a fixed rate, which must usually be paid by the undertaking regardless of its financial results. A bondholder is a creditor of the undertaking.
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