Republic of Bolivia - 1928 dated $1,000 Uncanceled Bolivian Bond
Inv# FB6542A
Bond
$1,000 7% Bond printed by American Bank Note Company. Many coupons remain.
Issued in 1928, the $1,000 Uncanceled Gold Loan Bond stands as a significant moment in the industrial aspirations and financial vulnerabilities of the Republic of Bolivia. In the late 1920s, the Bolivian government actively sought substantial foreign investment, primarily from American banks, to finance ambitious infrastructure projects such as railways and roads. These “Gold Bonds” were secured by the nation’s commitment to repay in gold coin, reflecting a period of optimistic modernization just before the global economy underwent a transformative shift.
However, the timing of these bonds proved to be a precarious gamble. The Great Depression of 1929 caused a dramatic decline in the price of tin, Bolivia’s primary export commodity. This economic downturn left the nation unable to meet its escalating external debt obligations. By the early 1930s, Bolivia found itself in a prolonged default, and the subsequent Chaco War further depleted its treasury.
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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