German Provincial and Communal Banks Consolidated Agricultural Loan 6.5% 1928 Bond (Uncanceled)
Inv# FB5183 Bond
$1,000, 6 1/2% Uncanceled Gold Bond printed by American Bank Note Company. Rare!
The German Provincial and Communal Banks Consolidated Agricultural Loan 6.5% 1928 Bond was a $25,000,000 issue of thirty-year secured sinking fund gold bonds. These bonds were designed to finance German agricultural improvements. In June 1928, American syndicates like Lee, Higginson & Co. and Harris, Forbes & Co. offered these bonds. They were marketed as high-quality securities backed by provincial and communal bank assets.
This issuance was part of a larger flow of American capital into German financial institutions in the mid-1920s. The goal was to restructure the agricultural sector. However, the German debt crisis of the early 1930s affected these bonds. After 1930, Germany stopped paying foreign bonds. This led to restructuring under the later London Debt Agreement, which settled these debts.
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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