Description: 1935 WWII Era Third Reich Finance 500 Swiss Francs Ten Year 4% Bond Konversionskasse für Deutsche Auslandsschulden Swiss Issue Series 1B What You See Is What You Get Lot KK010079: Fine example of a Conversion Bank for German Foreign Debt bond for 500 Swiss Francs from the Third Reich; verso describing in German and French the terms of the bond, and endorsed by Reich Chancellor Adolf Hitler, Reich Minister of Finance Graf Schwerin von Krosigk, and Reich Minister of Economics and President of the Reichsbank, Hjalmar Schacht. Condition rates an old-school VF+ See scans. Authentic historical artifacts documenting turbulent times. The last few remaining examples of these canceled certificates were auctioned off by the German Federal Office for Central Services and Unresolved Property Issues (BADV) in 2008. It was part of their sales of the 'Reichsbankschatz,' a great hoard of pre WWII shares and bonds which were discovered in the vaults of the former Reichsbank in Berlin shortly after German reunification in 1991. Lithograph by the State Printing Office in Berlin on standard European A4 size paper. Punch and stamp cancel. The face of the bond that you will receive is pictured above, images of the backs and BADV stamp are provided as examples. Appealing to scripophily collectors, historians, and educators alike, they make for an interesting addition to Second World War and finance collections. Makes a nice gift for the Old Cold Warrior, student, educator, or history buff in your life! Shipped FLAT 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 German, Soviet, WWII and other historical curios. Q: What am I buying, and why would I want it? A: Three years of the Great Depression had nearly depleted Germany's foreign reserves. This foreign exchange shortage in the waning days of the Weimar Republic left the Reich struggling to service its large foreign debt, and threatened to cripple its overseas trade. In June of 1933 the Konversionskasse für Deutsche Auslandsschulden (Conversion Office for German Foreign Debts) was established as a means to control the outflow of hard currency from Germany. Administered by the German central bank, the Reichsbank, the Konversionskasse was responsible for settling international transactions. Under the law Germans owing payments of rent, interest, dividends, or amortizations on foreign debts contracted before 15 July 1931 (excepting certain obligations, such as the Dawes and Young loans,) would pay to the Konversionskasse the amount due in Reichsmarks, thereby discharging their debt. The Konversionskasse would then pay to the foreign creditor an equivalent sum, only partly in cash, with the balance paid in non-convertible Reichsmark denominated scrip or interest bearing foreign denominated bonds such as these. All of these funds were "blocked," in that they could only be used to buy German goods for export, or for certain trade related expenses. But, while they could not be used to purchase hard assets or for speculative purposes they could sometimes be exchanged for hard currency (albeit at a 50% discount,) at the Reichsbank controlled Golddiskontbank, when foreign exchange was made available. As of March 1940 the Konversionskasse had the following in outstanding bonded debt (in millions of Reichsmarks): 4% G.B. Sterling – 101.9 4% Swiss Francs – 63.1 4% Dutch Guilders – 5.4 4% Swedish Kroner – 22.2 3% Reichsmark – 70.3 3% Swiss Francs – 3.9 3% Dutch Guilders – 11.3 3% French Francs – 0.5 3% U.S. Dollars – 125.7 3% Canadian Dollars – 0.2 3% G.B. Sterling – 0.9 In the United States, trading in the bonds was made illegal after 21 December 1941. Following World War II, the London Agreement on German External Debts, negotiated in 1952 and implemented in 1953, provided that ⅔ of the outstanding interest then in arrears was to be waived with the remaining ⅓ being recapitalized. The agreement also provided that the maturity of the bonds be extended 17 years, and that Reichsmark denominated bonds and scrip be converted to Deutschmark on a 10:1 (old to new,) ratio. You will hold history in your hands.
Price: 10.99 USD
Location: Camden, New Jersey
End Time: 2024-12-14T21:00:01.000Z
Shipping Cost: 5 USD
Product Images
Item Specifics
All returns accepted: ReturnsNotAccepted
Circulated/Uncirculated: Circulated
Type: Bond
Country/Region of Manufacture: Germany
