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An Exceptionally Rare and Historic United States Loan Office Certificate Issued Following Alexander

Currency:USD Category:Collectibles / Autographs Start Price:24,500.00 USD Estimated At:35,000.00 - 70,000.00 USD
An Exceptionally Rare and Historic United States Loan Office Certificate Issued Following Alexander
SOLD
225,000.00USD+ (40,500.00) buyer's premium + taxes, fees, etc...
This item SOLD at 2013 Oct 19 @ 10:39UTC-4 : AST/EDT
George Washington (1732 - 1799). First President of the United States. Document Signed. January 17, 1792. Size 6"x18." Anderson US-195. Professionally restored and reinforced by Silking on the obverse which does not detract from the bond, the reverse with Washington's signature is not touched or covered. There is a 20mm diameter circular cancellation on the lower right portion of the bond. There are also four small spots of ink burn that has caused minor paper loss on the left side portion of the bond but it is not near Washington's signature. The bond appears in VF condition with no other tears or condition problems to note.

Issued by the United States Loan Office. Payable to "George Washington, Esqr. Of the County of Fairfax or his assigns, the sum of one Hundred & Twenty three dollars & ninety nine cents Assumed debt bearing interest at six per cent. Per annum, from the first day of January A.D. one thousand eight hundred and one, inclusively; payable quarter-yearly, and subject to redemption by payments not exceeding, in one year, on account both of principal and interest, the proportion of eight Dollars upon a hundred of the Stock bearing interest at six per cent: created by virtue of an Act, making provision for the Debt of the United States, passed on the fourth day of August, [1790] "As the first loan issued under Alexander Hamilton's plan for the federal assumption of debt to reorganize the state and foreign debts under the new Federal government, this remains one of the most historically significant issues of any stock or bond in American history. Following the American Revolution, a complex web of state and national debt remained to be sorted out and repaid. After complex negotiations and compromises with the states, the entirety of the large state and national debt was consolidated into a series of loans. This example originates from the first series of Loan Office certificates which were issued under Hamilton's plan of assumption. The plan authorized a total of $12,000,000 to fund the payment of principal and interest on the outstanding foreign debt, $21,500,000 for the payment of interest and principal on the outstanding debts of the states for expenses related to the war and a loan"to the full amount" of the remaining domestic debt.

Of exceptional historical importance to the history of American capital markets, this is truly one of the finest rarities to surface on the scripophily market for many years. These certificates were the first securities traded on the New York Stock Exchange founded in 1792 after the signing of the Buttonwood Agreement just four months after this certificate was issued to Washington. Including this lot, we've been able to locate just three examples of this security issued to Washington, the other two being Certificate #336 as listed in"The Price of Liberty" by William G. Anderson, now in the Museum of American Finance, and Certificate #353 in the archives of the George Washington University Library.

A clerical hand has accomplished the statement of endorsement"I request the within debt may be carried to my credit on the books of the Treasury of the United States, Oct. 1st, 1794." At its completion, the sitting president boldly signs"G. Washington." It is most interesting that Washington chose to leave his funds in the Treasury as his government was in a crisis dealing with the Whisky Rebellion.

Stocks and bonds of any type issued to and signed by Washington are of extreme rarity. That this important issue of American debt is Washington's personal certificate offers a truly superb opportunity for the collector of important historic financial or presidential rarities. The first we are aware of to be offered publicly.