History of the Reorganization Gold Loan of 1913

The Reorganization Gold Loan of 1913 was for the capital sum of £25,000,000. The loan was authorized by Presidential Order of 22nd April, 1913 officially communicated by the Wai Chiao Pu to the Ministers in Peking of Great Britain, Germany, France, Russia, and Japan. (The Wai Chiao Pu was the Ministry of Foreign Affairs of the government of the Republic of China).

The newly appointed President of the Republic of China, Yuan Shih Kai initially approached Britain, France, Germany, and United States of America seeking a substantial loan to assist the fledgling government of the Republic of China. Later this group was expanded to include Japan and Russia, but eventually the U.S. withdrew from participation, leaving five countries which agreed to assist the Chinese Government with financial aid.

The principal financial institutions which participated in the loan arrangements were the Hongkong & Shanghai Banking Corporation, Deuthsch-Asiatiche Bank, Banque de l’Indo Chine, and Russian Asiatic Bank.

The Yokohama Specie Bank participated on behalf of Japan, but did not issue separate bonds, countersigned by the bank. Arrangements were made as to convertibility into Japnanese Yen of the bearer bonds issued to by other four issuing banks. The banks all received 6% commission for handling this loan and the capital amounts allocated to each bank together with bonds issued are detailed in the data below…..

Hongkong & Shanghai Banking Corp. £7,416,000
Deutsch-Asicatiche Bank £6,000,000
Banque de l”Indo-Chine £7,416,660
Russian Asiatic Bank £2,777,780
Russian Asiatic Bank (Belgium) £1,388,880

The purpose of the loan was to enable the new government of the Republic of China to meet financial liabilities inherited from the previous Chinese Imperial Government, for the reorganization of government institutions and to meet the administrative costs.

As an interesting footnote to this loan, Mr. M. E. Weatherall, who was a senior official of the Chinese Maritime Customs Service in 1921 was quoted in the publication “Wayfoong” as making the following observation.

“I believe that I am correct in saying that the greater part, if not all of the reorganization loan of 1913 was accounted for by statements and vouchers, but in actual fact very little of it was ever applied to the purposes for which it was lent. It disappeared mysteriously and nobody knows where it has gone.”

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*Source: Historic Foreign Bonds of China by John M. Thomson (2012)

Chinese Government - Reorganization Gold Loan of 1913

The Reorganization Gold Loan of 1913 was for the capital sum of £25,000,000. The loan was, “…authorised by Presidential Order of 22nd April 1913 officially communicated by the Wai Chiao Pu1 to the Ministers in Peking of Great Britain, Germany, France, Russia and Japan.

The newly appointed President of the Republic of China, Yuan Shih Kai, initially approached Britain, France, Germany and United States of America seeking a substantial loan to assist the fledgling government of the Republic of China. Later this group was expanded to include Japan and Russia, but eventually the United States of America withdrew from participation, leaving five countries which agreed to assist the Chinese Government with financial aid.

The principal financial institutions which participated in the loan arrangements were the Deutsch-Asiatiche Bank, Banque de l’Indo-Chine and Russian Asiatic Bank. The Yokohama Specie Bank participated on behalf of Japan, but did not issue separate bonds, countersigned by the bank. Arrangements were made as to convertibility into Japanese Yen of the bearer bonds issued by the other four issuing banks. The banks all received 6% commission for handling this loan.
 
Reference: Historic Foreign Bonds of China: A Collector’s Compendium by John M. Thomson. 

For more information visit our web site, http://www.glabarre.com, or call George LaBarre at 1-800-717-9529.

George H. LaBarre Galleries - Collectible Stocks and Bonds and Old Stocks and Bonds
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A foreign antique stock and bond company.

History of The Chinese Reorganization Gold Loan of 1913 - Part Six

The above information and photo about the 1913 - 5% Reorganisation Gold Loan is reprinted with the permission of author John Thomson and is taken from his brand new book Historic Foreign Bonds of China.

To view and/or purchase our collection of Chinese Reorganization Gold Loan of 1913 visit our web site, http://www.glabarre.com, or call George LaBarre at 1-800-717-9529.

George H. LaBarre Galleries - Collectible Old Stocks and Bonds and Old Stocks and Bonds
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A foreign antique stock and bond company.

History of The Chinese Reorganization Gold Loan of 1913 - Part Five

The following information  about the 1913 - 5% Reorganisation Gold Loan is reprinted with the permission of author John Thomson and is taken from his brand new book Historic Foreign Bonds of China.

The bond illustrated is a £20 bond issued by the Russian-Asiatic Bank1 but is distinguished by having a blue coloured stamp on the top of the bond. This stamp is often referred to as the “Nanking Stamp” as it makes a declaration on behalf of the Ministry of Finance in Nanking. The quality of the stamp is very poor and the text is difficult to read as the blue coloured ink is almost illegible against the green coloured background of the bond. The text of the “Nanking Stamp” is as follows:

Owing to provisions for payments of coupons 19 to 27 having been tied up through the liquidation of the Russo-Asiatic Bank, coupons 19 to 27 inclusive of this bond are temporarily not cashable. Coupons from 28 onwards are cashable as usual. Arrangements for settlement of coupons 19 to 27 will be made later, when bond-holders will be duly informed.


MINISTRY OF FINANCE NANKING, March 15th 1930



To view and/or purchase our collection of Chinese Reorganization Gold Loan of 1913 visit our web site, http://www.glabarre.com, or call George LaBarre at 1-800-717-9529.

George H. LaBarre Galleries - Collectible Old Stocks and Bonds and Old Stocks and Bonds
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History of The Chinese Reorganization Gold Loan of 1913 - Part Four

The above SCRIP certificate relates to the 1913 5% Reorganisation Loan and is a receipt delivered to the bearer of provisional certificate No. 5811 for surrender of 15 coupons Nos. 4-18. The SCRIP was issued by the Russian-Asiatic Bank in Paris in November 1922 and bears a 25 centime French revenue stamp at the top which has been affixed to the certificate.

The above information and photo about the 1913 - 5% Reorganisation Gold Loan is reprinted with the permission of author John Thomson and is taken from his brand new book Historic Foreign Bonds of China.

To view and/or purchase our collection of Chinese Reorganization Gold Loan of 1913 visit our web site, http://www.glabarre.com, or call George LaBarre at 1-800-717-9529.

George H. LaBarre Galleries - Collectible Old Stocks and Bonds and Old Stocks and Bonds
http://www.glabarre.com
A foreign antique stock and bond company.

History of The Chinese Reorganization Gold Loan of 1913 - Part Three

The following information about the 1913 - 5% Reorganisation Gold Loan is reprinted with the permission of author John Thomson and is taken from his brand new book Historic Foreign Bonds of China.

The purpose of the loan was to enable the new government of the Republic of China to meet financial liabilities inherited from the previous Chinese Imperial Government, for the re- organisation of government institutions and to meet the administrative costs.

The loan was secured upon the entire revenues of the Salt Administration of China. In some ways this was a rather dubious security for such a large-scale loan as the entire Salt Gabelle (Salt Tax) had already been committed for other purposes with any surplus being pledged as a security against the Crisp Loan of 1912.

However there was a further provision that foreigners would assist in the reorganisation of the collection of Salt Tax revenues and if the loan was at any time in default, the Salt Tax revenues were to be administered by the Maritime Customs Administration which was primarily under the control of foreigners.

Coupons were payable on 1st January and 1st July each year. The loan has been in default since 1939.

As an interesting footnote to this loan, Mr. M. E. Weatherall, who was a senior official of the Chinese Maritime Customs Service1 in 1921 was quoted in the publication “Wayfoong”2 as making the following observation;

“I believe that I am correct in saying that the greater part, if not all, of the reorganisation loan of 1913 was accounted for by statements and vouchers, but that in actual fact very little of it waseverappliedtothepurposesforwhichitwas lent. It disappeared mysteriously and nobody knows where it has gone.”

To view and/or purchase our collection of Chinese Reorganization Gold Loan of 1913 visit our web site, http://www.glabarre.com, or call George LaBarre at 1-800-717-9529.

George H. LaBarre Galleries - Collectible Old Stocks and Bonds and Old Stocks and Bonds
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A foreign antique stock and bond company.


1 The Chinese Maritime Customs Service was established in 1854, but due to the inability of Chinese officials to collect maritime trade duties and revenues, the service was subsequently staffed at senior levels by foreigners, especially after various loans were made to the Chinese Government whereby the security for the loans was from maritime customs revenues

2 Page 154, “Wayfoong, The Hongkong and Shanghai Banking Corporation” by Maurice Collis, first published in 1965 by Faber and Faber Ltd., London

History of The Chinese Reorganization Gold Loan of 1913 - Part Two

The following information about the 1913 - 5% Reorganisation Gold Loan is reprinted with the permission of author John Thomson and is taken from his brand new book Historic Foreign Bonds of China.

The principal financial institutions which participated in the loan arrangements were the Hongkong & Shanghai Banking Corporation, Deutsch-Asiatiche Bank, Banque de l’Indo-Chine and Russian Asiatic Bank.
 
The Yokohama Specie Bank participated on behalf of Japan, but did not issue separate bonds, countersigned by the bank. Arrangements were made as to convertibility into Japanese Yen of the bearer bonds issued by the other four issuing banks. The banks all received 6% commission for handling this loan and the capital amounts allocated to each bank together with bonds issued are detailed in the data2 tables below:

• Hongkong & Shanghai Banking Corporation        £7,416,680
• Deutsch-Asiatiche Bank                                         £6,000,000
• Banque de l’Indo-Chine                                         £7,416,660
• Russian Asiatic Bank                                             £2,777,780
• Russian Asiatic Bank (Belgium)                           £1,388,880

It should be noted that the original Russian issue bonds which were brown coloured, were subsequently withdrawn and exchanged for a series of green coloured bonds. The original brown coloured bonds, sometimes referred to as “Y ellow    Bonds”    were    annulled.    In    consequence there may still be bonds in existence of two different colours from the Russian issue carrying identical serial numbers.


To view and/or purchase our collection of Chinese Reorganization Gold Loan of 1913 visit our web site, http://www.glabarre.com, or call George LaBarre at 1-800-717-9529. 

George H. LaBarre Galleries - Collectible Old Stocks and Bonds and Old Stocks and Bonds 
http://www.glabarre.com  
A foreign antique stock and bond company.

Collectible Chinese Bonds

Looking for collectible Chinese bonds? We have a wonderful collection available, including Chinese Government - Reorganization Gold Loan of 1913 in blue, brown and green.

We also have China-Lung-Tsing-U-Hai Railway and Imperial Chinese Government bonds.

For more information visit our web site, http://www.glabarre.com, or call George LaBarre at 1-800-717-9529.

George H. LaBarre Galleries - Collectible Old Stocks and Bonds and Old Stocks and Bonds
http://www.glabarre.com A foreign antique stock and bond company.

Chinese Government - Reorganization Gold Loan of 1913 - Brown

Country: China
Years: 1913
Brown £20 5%, German Bank Issue or French Indochina Issue. 42-43 Coupons.

Imperial Chinese Government Hukuang Railways bonds are well-nigh ubiquitous in the marketplace. They were issued in 1911 by a consortium of banks in London, Berlin, Paris and New York, with serial numbers running into the six digits, of which hundreds if not thousands appear to have survived.

A few bear New York State adhesive revenue stamps; shown here is a New York issue £100 bond with Secured Debt $1 and Investments $1 stamps paying New York’s Investments tax in 1917 and 1918; this secured for the bondholder exemption from that state’s onerous personal property tax.

Coupon bonds of this era are generally large and spectacular—American bonds typically measure about 10 by 15 inches—but this one sets new standards on both scores. It is huge, some 16 by 22 inches as shown. Its design and execution by security printers Waterlow & Sons of London are equally impressive, featuring the facsimile seals and signatures of China’s Minister of Posts and Communications and its Minister in Washington. Alongside is the countersignature of a representative of the New York banks J. P. Morgan & Co., Kuhn Loeb & Co., the First National Bank of the City of New York, and the National City Bank of New York.

Beauty is in the eye of the beholder, and to my eye these Hukuang Railways bonds are among the most attractive pieces ever to bear stamps. Similar bonds issued in London, Berlin and Paris by the Hong Kong and Shanghai Banking Corporation, Deutsch-Asiatische Bank, and Banque de L’Indo-Chine, respectively, show the signatures of their representatives and of the Chinese Ministers to Great Britain, Germany and France.

Only the relatively few stamped bonds are philatelically interesting, but all are historically important.

For more information visit our web site, http://www.glabarre.com, or call George LaBarre at 1-800-717-9529.

George H. LaBarre Galleries - Collectible Old Stocks and Bonds and Old Stocks and Bonds
http://www.glabarre.com A foreign antique stock and bond company.

Chinese Government Reorganization Gold Loan of 1913

We have an outstanding collection of Chinese Government Reorganization Gold Loan Bonds. For pricing incormation contact geprge at 1-800-717-9529. Refer to the FB number.

FB5055. China, 1913, Blue-Red. £100 5% Reorganization Gold Loan Bond, German Bank Issued. Uncancelled. 42-43 Coupons. Many coupons. Important to stress that these bonds have been bought up in recent years and pretty much taken off the market. As a result prices have risen rather dramatically. Excellent Condition!!! Price upon request.

FB5055a. Same 1913, but Blue. £100 5% Hong Kong and Shanghai Bank Issue. 42-43 Coupons. Rare!!! Price upon request.

FB5055b. Same 1913, but Brown £20 5%, German Bank Issue or French Indochina Issue. 42-43 Coupons. Price upon request.

FB5055c. Same 1913, but Green or Brown £20 5%, Russian Bank Issue. 42-43 Coupons. Price upon request.

FB5055d. Same 1913, but Brown £20 5%, Hong Kong & Shanghai Bank Issue. 42-43 Coupons. Rare!!! Price upon request.

George H. LaBarre Galleries - Collectible Stocks and Bonds.