CSA 1863 ERLANGER BOND 7% COTTON LOAN L100 STERLING & FRANCS
Item #: CWB12734
Click on an image to enlarge
FRAME 24" X 29" ~ PICK UP ONLY ~ EMAIL OR CALL FOR DETAILS
Confederate States of America... 7 PER CENT COTTON LOAN 20 year Bond.. issued 1863 to mature in 1883 Originally had 40 coupons attached... 4 have been clipped... 36 remained.Amazing piece of Financial History... yes, issued in Europe to help finance the Confederate States of America Series D, No 2086 issued for L100 (100 pounds sterling) or F2500 (2500 French Francs) Underwriters were Schroeders (famous UK Bank) and Erlanger (famous French bank) Dual currency, commodity backed, convertible into cotton at holders option That would be an exotic financial instrument today !!!!Condition is Fine +...A small write up below: The failure of King Cotton diplomacy was merely a tactical blunder with no reflection on the power of cotton. The imaginative and brilliant financing of the cotton-backed Erlanger bond, launched in Europe in March 1863, epitomized the potential of cotton credit. The Erlanger bond, named after the powerful French banking house Erlanger & Cie., was a dual currency, one commodity bond. Through it the Confederate States of America attempted to borrow 3 million pound sterling or 75 million French francs for 20 years, priced at 7 percent. Investors could receive coupon and principal payments in either pound sterling or French francs, and were given the additional option of taking payment in cotton at a fixed price. The high-risk Erlanger bond was oversubscribed, and the price fell within a few months. The Erlanger bond quickly became one of history's most important junk bonds.
Confederate States of America... 7 PER CENT COTTON LOAN 20 year Bond.. issued 1863 to mature in 1883 Originally had 40 coupons attached... 4 have been clipped... 36 remained.Amazing piece of Financial History... yes, issued in Europe to help finance the Confederate States of America Series D, No 2086 issued for L100 (100 pounds sterling) or F2500 (2500 French Francs) Underwriters were Schroeders (famous UK Bank) and Erlanger (famous French bank) Dual currency, commodity backed, convertible into cotton at holders option That would be an exotic financial instrument today !!!!Condition is Fine +...A small write up below: The failure of King Cotton diplomacy was merely a tactical blunder with no reflection on the power of cotton. The imaginative and brilliant financing of the cotton-backed Erlanger bond, launched in Europe in March 1863, epitomized the potential of cotton credit. The Erlanger bond, named after the powerful French banking house Erlanger & Cie., was a dual currency, one commodity bond. Through it the Confederate States of America attempted to borrow 3 million pound sterling or 75 million French francs for 20 years, priced at 7 percent. Investors could receive coupon and principal payments in either pound sterling or French francs, and were given the additional option of taking payment in cotton at a fixed price. The high-risk Erlanger bond was oversubscribed, and the price fell within a few months. The Erlanger bond quickly became one of history's most important junk bonds.
Shipping Weight:
0 lb
Item # CWB12734
$650.00 USD