1924 German 1000 Francs 7% WWI Reparations Loan Bond Dawes Plan Swiss Issue VG+

Description: 1924 German Government International 7% Loan ₣1000 Switzerland Issue 'Dawes Plan' What You See Is What You Get Lot: G14818 - In this lot you get: (1x) ₣‎1000 7% bearer bond of Swiss Issue of the 'Dawes Plan' Loan On offer: A bond for 1000 Swiss Francs (CHF) from the Swiss tranche of the 'Dawes Plan' international loan of 1924. Of 15,000 issued, only 3,000 are known to remain. Printed on heavy stock by the Reichsdruckerei (State Printing Office) in Berlin. Text is in German, English and French. The terms and conditions of the loan are printed in English on the verso of the bond. Condition VG+; excellent color, sharp details, no foxing. Crisp, bright and clean. Lite mid fold from storage. Edge nick from coupon clip, does not detract. Fat margins. The bond has been punch and stamp canceled. Measures approx. 11"x17" A financial objet d'art. See scans. The front and back of the bond that you will receive are pictured above. The image of the cancellation stamp translation is provided as an example. This lot originated in the German government's auctions of the legendary "Reichsbankschatz" (Reichsbank Treasure), a hoard of stocks and bonds from the Third Reich era which was uncovered in East Berlin shortly after German Reunification, in 1991. The cancellation stamp attests to this source. The last remaining examples of these VG+ certificates were sold by the German Federal Office for Central Services and Unresolved Property Issues (BADV) in 2008, through the firm of Dr. Busso Peus Nachf. e.K., of Frankfurt am Main, one of the oldest numismatic auction houses in Germany. Appealing to scripophily collectors, history buffs, and educators alike they make for an interesting addition to any financial, First or Second World War collection. Shipped FOLDED via USPS Ground Advantage, with tracking. YES! Will combine shipping - First lot ships at standard rate, all other lots in same order ship free (except where noted). Thanks for looking! Please see my other items for more Third Reich, Soviet and other historical curios. Q: What am I buying, and why would I want it? A: While not a "reparations bond" per se, this bond is from the first global attempt to bailout post-WWI Germany, and restore its capacity for making World War I Reparations payments. In ending the First World War the Treaty of Versailles had left the question of the amount owed by the Germans for reparations, unsettled. Article 231 of the treaty, the so-called "War Guilt Clause," committed the new Weimar Republic to full responsibility for the war, including its costs. In 1921 that cost was fixed by the Inter-Allied Reparations Commission at 132 billion Gold Marks (a Gold Mark [GM] was based on the 1913 exchange rate: M4.2=US$1). Under the terms of this, the London Schedule of Payments, Germany was obligated to make annual payments in cash of GM2 billion, and of equivalents in kind amounting to 26% of her total exports, until such time as the debt was satisfied. The plan was unworkable. So much so, that it became a factor in Germany's disastrous 1922/23 Hyperinflation, which put Bavaria's Adolf Hitler firmly on the political map across Germany for the first time, and launched his National Socialist German Workers Party onto the world stage with their bungled 'Beerhall Putsch' uprising attempt in November of 1923. The Dawes Plan 1924 The first attempt to bailout Germany and get its reparations payments flowing again came in the form of the Dawes Plan. Named for its chief negotiator (who would share the 1925 Nobel Peace Prize for his efforts,) the prominent American banker and future U.S. Vice president, Charles G. Dawes. Announced in April 1924, the objectives of the Dawes Plan were to: stabilize the German economy in the aftermath of its crippling hyperinflation; reform the currency; reduce military tensions, and restore regular German reparations payments. Under the plan Germany's annual reparation payments were reduced, increasing over time only as its economy improved; the full amount to be paid, however, was left undetermined. Economic policy making in Berlin would be reorganized under foreign supervision, and a new currency, the Reichsmark (ℛℳ), adopted. Allied Occupation troops would be evacuated to the West bank of the Rhine, and foreign banks would provide 800 million Gold Marks (US$190 million; $2.6 billion in 2016) in loans to Germany. J. P. Morgan & Co. were the underwriters for the American bonds, which were quickly oversubscribed in an enthusiastic market. An international undertaking, the bonds were issued in the following countries: United States Great Britain France Belgium Holland Italy Sweden Switzerland Germany With the Dawes Loan credits Germany began to enjoy vigorous real growth for the first time since the Great War. However, the reparations payments were still a drag on its foreign reserves. It became apparent by 1927 that the Plan was not going to be an effective long-term solution, and Germany found itself facing a foreign exchange crisis. This led to a second global attempt to float a foundering Germany, which resulted in the 1930 Young Plan international loan package. The economic chaos brought on by the budding Great Depression, coupled with bitter political debates in Germany surrounding the Young Plan's adoption, were again powerful catalysts for the Nazi Party. So successfully did they exploit the situation in following elections that it made them the largest party in the Reichstag, paving the way for the Hitler dictatorship and the Third Reich. Hitler Repudiates Versailles 1933 In a speech before the Reichstag on 17 May 1933 the then recently appointed German Chancellor, Adolf Hitler, denounced the Treaty of Versailles and repudiated all debts associated with it. However, in spite of the Führer's fit of fiscal pique and his refusal to make "mandated" payments, the German Reichsbank continued through the Bank for International Settlements, to service the interest due on the bonds of the Dawes loan. It was only a year later in June of 1934, in pleading a lack of hard currency, that the Reichsbank imposed a unilateral moratorium on all payments. In response, the British government announced that it would begin impounding amounts owed to British bondholders from trade payments due Germany. Within a month, in July 1934, the Anglo-German Transfer Agreement was reached. The accord provided for Germany to resume interest payments on the Dawes and Young loans, but only outside of the framework of the Versailles Treaty on strictly bi-lateral terms. Similar agreements were soon reached with other former WWI foes, and so, in spite of the brief hiccup trade was not otherwise impacted. The episode did, however, reinforce the German drive for autarky, which would figure prominently in the War Economy of the Third Reich. As became clear after the War, Hitler's staged retreat on the issue of reparations debt was compelled by Germany's need for hard currency and further injections of foreign capital, which helped to underwrite German military expansion. Ironically, had Hitler persisted in being a deadbeat, Germany might not have been able to afford going to war in 1939. PAID-IN-FULL In 1953 West Germany resumed some payments. After the reunification of East and West Germany in 1990, the Federal Republic of Germany undertook to pay-off its remaining obligations. In 2010 Germany made its last payment to the United States. You will hold history in your hands.

Price: 9.99 USD

Location: Camden, New Jersey

End Time: 2024-12-11T19:00:01.000Z

Shipping Cost: 5 USD