Tuesday, July 19, 2011

History of German Young Bonds - Part One

In 1930, Germany offered $98.25 million of a bearer bond called “Young Bonds” subscription in the United States. Young Bonds were listed on the New York Stock Exchange and payable in New York City.

Young Bonds were backed by the full faith and credit of Germany, requiring the country to maintain sinking funds from various revenue sources. However, in July 1934, World War II began and Germany ceased making interest payments on the Young Bonds, thus making impossible any demands for payment or pursuit of remedies under the Bonds.

Following the war, Germany affirmed its pre-war liabilities. A payment plan was negotiated at the Conference on German External Debts in London, and on February 27, 1953, Germany, the United States, and seventeen other nations signed the London Debt Agreement (“LDA”),2 which resulted in a proposed settlement of most of Germany’s pre-World War II debts.

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.

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