Dortmund Municipal Utilities 6.5% Uncancelled $1000 Bond dated 1928 - Includes PASS-CO Authentication
Inv# FB6467 Bond
$1,000 6 1/2% Sinking Fund Mortgage Gold Bond.
The Dortmund Municipal Utilities 6.5% Twenty-Year Sinking Fund Mortgage Gold Bond, dated October 1, 1928, stands as a significant financial artifact from Germany’s industrial recovery during the Weimar Republic. Issued in a $1,000 denomination and redeemable in U.S. gold coin, this debt instrument was strategically designed to entice American capital to finance crucial improvements to Dortmund’s electric power plants and electrical infrastructure. As a “sinking fund” bond, it was intended to be systematically repaid over two decades, reflecting a period of active modernization and expansion of public utilities in the Ruhr region.
These bonds are often found in their uncancelled form, devoid of the “Paid” stamps or punch holes that commonly detract from the value of historic documents. They were frequently traded on American exchanges, but like many foreign debts of the era, payments ceased in the 1930s when Germany halted payments on foreign bonds. Today, these uncancelled 1928 bonds hold immense value in the scripophily market, serving as a visual record of pre-WWII German industrial infrastructure and investment. They feature detailed vignettes of power generation, providing a glimpse into the era’s technological advancements.
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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