Central Paicifc Railway Co. - 1911 dated 500 French Francs Railroad Bond - Very Rare
Inv# RB7334 Bond
500 Francs/£19.15 4% Bond printed by American Bank Note Company, New York. Very Rare! The Central Pacific Railroad (CPRR) was a rail company chartered by U.S. Congress in 1862 to build a railroad eastwards from Sacramento, California, to complete most of the western part of the "First transcontinental railroad" in North America. Incorporated in 1861, CPRR ceased independent operations in 1875 when the railroad was leased to the Southern Pacific Railroad. Its assets were formally merged into Southern Pacific in 1959.
Following the completion of the Pacific Railroad Surveys in 1855, several national proposals to build a transcontinental railroad failed because of political disputes over slavery. With the secession of the South in 1861, the modernizers in the Republican Party controlled the US Congress. They passed legislation in 1862 authorizing the central rail route with financing in the form of land grants and government railroad bond, which were all eventually repaid with interest. The government and the railroads both shared in the increased value of the land grants, which the railroads developed. The construction of the railroad also secured for the government the economical "safe and speedy transportation of the mails, troops, munitions of war, and public stores". Read more at https://en.wikipedia.org/wiki/Central_Pacific_Railroad
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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