1822 Historic Banker Nathan Mayer Rothschild Signed Russian Five Percent Annuity Bond to be Paid in London
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NATHAN MAYER ROTHSCHILD (1777-1836). Baron de Rothschild, English-German banker of Jewish heritage, businessman and financier of the second generation of the Rothschild Banking dynasty which was to become N. M. Rothschild & Sons. First person of Jewish faith admitted to the House of Lords. A Freemason, in the aftermath of the British Slavery Abolition Act 1833, with the Slave Compensation Act 1837, Rothschild and his business partner Moses Montefiore loaned the British Government 15 million (worth 1.46 billion in 2022), used to compensate the Slave owners in the British Empire after the Slave Trade had been Abolished.
1822-Dated, Partially-Printed Document Signed, “N. M. Rothschild” by Nathan Mayer Rothschild (1777-1836), Being a Russian 5% Loan Bond of 1822, Fully Signed and Issued with Embossed “Rothschild” and “London” Seals, Very Fine. Signed “N. M. Rothschild” as “Contractor” in the upper right margin of an 1822 Russian Annuity Bond, measuring 14” x 9.25”, this example with a Russian paper stamp partially covering part of his last name. Somewhat worn from use with some minor marginal tears, chipping affecting the outer left border imprinting, some early paper reinforcement added to the outer edges as shown.
This historic bond is printed in Russian text on its face, and in both English and French on the back. This historic fiscal Document initiated by the Russian Minister of Finance at St. Petersburg provided for a perpetual annuity of 3360 Roubles or 518 British Pounds Sterling on the investor’s money. The top front displays a Crowned Two-Headed Russian Eagle vignette and is official registered with various stamps and seals. It also displays the official Embossed Seal at lower right reading: “RUSSIAN LOAN 1822 CONTRACTED BY N. M. ROTHSCHILD” plus a black oval stamp reading: “COUPONS DELIVERED - IN LONDON - 1834”. Plus one unused bond interest payment coupon. (2 items) The “Russian Annuity Bond” Signed by N.M. Rothschild. FIVE per Cent. Certificate of a perpetual Annuity in the Great Book of the Public Debt of the Imperial Commission of the Sinking Fund.
The Bearer of this Certificate, on application to the Commission of the Sinking Fund, may cause it to be converted into an Inscription in the Great Book, in his own name, or that of any person or persons whom he shall designate; in which case the Dividends will he payable in St.-Petersburg only, at the periods above mentioned; and the transfer, or cession of such Inscription be made according to the existing Regulations.
Twenty-four Dividend Warrants are hereunto attached; if, when the last becomes payable, the Capital has not been redeemed or inscribed in the Great Book, twenty-four similar Warrants will be issued, and so forward, and in such manner as to secure to the Holder of this Certificate the due payment of the Annuity in St.-Petersburg or London. St. Petersburg, Russia, 1822 March.
In Russian, printed in French and English on verso. Five percent annuity certificate for a loan issued in 1918 with an expiration date of March 1930. In part: "Certificate of a perpetual Annuity in the Great Book of the Public Debt of the Sinking Fund, representing a Capital of Seven Hundred and Twenty Silver Roubles".
The bearer was entitled to an annuity of silver roubles. A sinking fund is a special reserve account into which the issuer promises to deposit funds at regular intervals and use the cash that accumulates to redeem the bonds, giving bondholders extra protection against default. Also signed by the Director of the Commission on verso.
At the time this bond was signed, ALEXANDER I (1777-1825) was Czar of Russia (1801-1825). During the reign of Alexander, who was known for alternately befriending and then fighting with Napoleon I, St. Petersburg became the social and artistic center of Europe.
NATHAN M. ROTHSCHILD (1777-1836), who created the bulk of his family's wealth with his bank, N.M. Rothschild, and his investments, was the third son of Mayer Rothschild, who had founded a money-lending business in Frankfurt and was the agent of the British government in subsidizing European sovereigns during the Napoleonic Wars. Nathan, who left for England in 1799, where he was a textile and general merchant before moving into finance, was one of the world's richest men when he died in 1836.
Nathan's son Lionel was elected to Parliament but was not allowed to take his seat because he was Jewish. Lionel's son, Sir Nathan Mayer Rothschild, First Baron Rothschild, was the first Jew admitted to the House of Lords. His son, 2nd Baron Rothschild, received the Balfour Declaration in 1917. A Special Fund of ONE per Cent, on the Amount of this Loan is appropriated for its redemption. Extract from the Regulations of the Commission.
The payment of the perpetual Annuity, as well as the payment of the outstanding Debts, will be effected in time of Peace, as well as in time of War, without distinction, whether the creditor belongs to a friendly or a hostile nation. 23. If a Foreigner, proprietor of Inscriptions, dies intestate, the inscriptions shall pass to his heirs, in the order of succession established by the Laws of the Country of which he was a subject.
The Capital placed in the Perpetual Debt being considered as an inviolable Property, shall be exempt from sequestration, both for claims of the Crown and those of individuals, unless these Capitals, in whole or in part have been given in security for Contracts of provisions, or by any other Articles of Agreement, whether with the Crown or with private individuals, or for the purpose of bailing any claim; in which case they are subject to the general Laws, concerning mortgages and bails.
These Capitals are likewise exempted in all cases from every Tax. No Person can be constrained to take back the whole or a part of the Capital placed in the Perpetual Debt. But to facilitate to the Proprietors of Inscriptions the means of converting them, when they desire it into ready money, the Commission will employ annually, for the purpose of repurchasing them, at the current price, a Capital of the Sinking Fund which shall be assigned beyond the Fund necessary for the Payment of the perpetual Interest. This Russian bond from 1822 is widely recognized as the first Eurobond.
Issued by the House of Rothschild in London, Frankfurt, Paris and Vienna, the bond promised payment in European currencies, as well as in Russian rubles. Perhaps more importantly, dividends could be claimed in any of the above cities -- effectively protecting the bondholder from the effects of a continental war -- if you are forced to flee the country, you can take your bonds with you to any one of four safe havens and expect payment! This is certified by none other than Nathan Rothschild -- one of the most famous investment bankers of all time. His signature appears on the upper right hand side of the bond. Missing from the bond are the original coupons -- they were all clipped and exchanged for payment.
Although titled an annuity, the 1822 issue was a perpetuity -- a promise by Russia to pay a dividend to the bondholder forever -- or at least until the Revolution of 1917. Nathan Mayer Rothschild (1777-1836) founded the British branch of the Rothschild banking house in London in 1805 and became the first person of the Jewish faith admitted to the House of Lords.
He took a leading part in managing and financing the subsidies that the British government transferred to its allies during the Napoleonic Wars. Nathan Mayer's eldest son, Lionel Nathan Rothschild (1808-79), who succeeded him as manager of the London branch, financed the British government's purchase of a controlling interest in the Suez Canal in 1875.