MADRID. Accion de 2000 reales. black. No 9130. Folds. One hole (for cancellation?) in upper left border, outside the printed part of the share. Unusual red wax seal on the back. The bank was formed in Madrid in 1782, primarily to establish a market in the vales reales, or royal bonds, and in its ownshares. The capital of the bank was 300.000.000 reales, divided into 150.000 shares of 2.000 reales. Quoted in Paris and Madrid, they became the subject of widespread speculation. Initially, the bank's operations went well. Later, however, it began to indulge in speculative operations, and this led to difficulties. Spain's war with France of 1792-5 led to strong inflation, and had a bad impact on the bank. By 1799 another war, and the loss of silver imports from the Americas, brought greater difficulties for the bank. It ceased trading in 1808, being finally liquidated in 1829. The share is signed by Cabarrus, the French founder of the bank. Various notes on the back from 1788 to 1829. Apart from the inscribed stock certificates from the Bank of England, this is perhaps the world's oldest bank share we know of. Rarity 7.
Themes: BANK & FINANCE, BEFORE 1800, CITY & STATE BONDS
Date: 2 June 1782
Startprice: € 500