KOPPENHAGEN. 5% Obligatie 1000 Hollands courant - Translaat. black. Folds and repaired tear. Dutch translation of the loan contract details to which Frederick V, King of Denmark and Norway has agreed upon. Intended for the Dutch investors to whom this loan issue was intended, Amsterdam being the leading capital market of the world in the 17th and much of the 18th century. This foreign loan by the King, was to allow him the repay the debt he had outstanding in his own kingdom, towards his own people. As collateral, the King offered his revenues from import and export duties. King Frederick V (1723-1766) reigned over Denmark and Norway and was also Duke of Schleswig and Holstein. His reign was marked by the progress of commerce, schooling and medical care. Art and science were also in good conditions under Frederick V. He purchased, on his 31st birthday, in 1754 what would become known as the Danish West Indies from the Danish West India Company. He invested strongly in his army and navy and this helped avoiding Denmark getting involved in the European wars of his time. The text on the bond states that these military investments are the principal reason of the accumulated debt, debt he now intended to export through this loan issue. In practice, the financial state in Denmark in the early 1760s wasdire, due to the large army of 20-25.000 soldiers stationed in Holstein and the rearmament following the coronation of Peter II of Russia in 1762. Denmark had tried to get funds through seignorage, but this destabilized both the state and the banks responsible. Lacking men of financial capacity, Frederick V called upon the services of von Schimmelmann, a highly esteemed German-born merchant and nobleman. He used his talents to get favorable loans from abroad such as this one) and this kept the Danish state and financial system afloat. The text on this bond specifically stipulates that the loan was negotiated on the King's behalf by Heinrich C. von Schimmelmann. Surely extremely rare.
Themes: BEFORE 1800, CITY & STATE BONDS
DENMARK, GERMANY, NORWAY
Date: 26 November 1764
Startprice: € 400