State of Hamburg Germany - 6% 1926 dated $1,000 German Gold Bond - Uncanceled - Hamburg, Germany
Inv# FB6450 Bond
$1,000 6% Uncancelled Gold Bond printed by American Bank Note Company.
The State of Hamburg, Germany, issued a significant artifact of Weimar Republic financial history in 1926: the 6% Gold Bond. This bond, originally maturing on October 1, 1946, was part of a series of foreign-denominated bonds designed to rebuild German infrastructure and stabilize the economy after the devastating hyperinflation of 1921-1923.
Issued on October 1, 1926, and authorized for $10,000,000, these bonds were part of a series of foreign-denominated bonds. They were denominated in U.S. Dollars and backed by gold, making them an “external loan” sold primarily to American investors. This was because international investors lacked confidence in the German Papiermark at the time.
The bond issue allowed Hamburg, an historic trading city and state, to secure capital for crucial public projects while operating within the economic constraints of the Dawes Plan period. The bonds, often printed by the American Bank Note Company, represented a promise of 6% annual interest and were often payable in cities like New York, London, or Amsterdam.
While many of these bonds went into default after 1933 when the National Socialists took power, they remain valuable to collectors today as high-quality, often uncancelled examples of 1920s international financing.
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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