Description:

A WWI $50 FOURTH LIBERTY LOAN GOLD BOND OF 1933-1938, AMERICAN, WASHINGTON D.C., OCTOBER 24, 1918,
ink engraving and lithograph on U.S. currency paper, signed in plate by Secretary of the Treasury, William B. McAdoo "MGMcadoo" and Register of the Treasury, Houston Benge Teehee "Houston B. Teehee" also in plate, with the lower, green color eight coupons, numbers 33-38; 10 1/2" x 8", framed 16" x 13".

  • Notes: In all of American financial history, this bond holds the rare distinction of being the only bond to have defaulted on its terms. The cause, House Joint Resolution 192, passed by Congress in 1933, which ultimately suspended payment in gold, and was not redeemed at the terms upon which it was issued. At a 4.25% rate, the Supreme Court ultimately ruled in favor of the American Banking institutions, refusing to allow bondholders payment in gold, which lost nearly 21 million bondholders around 41% of their original bond's principle. The Executive Order 1602 signed by F.D.R. on April 5, 1933, resulted in the bondholder's loss was unquantifiable, and that to repay them in dollars according to the 1918 standard of value we an "unjustified enrichment." (Perry V. U.S., 294 US 330- 1935.)
  • Condition: Apparent that original coupons previous to number 33 are not present, mild handling wear but otherwise no apparent damages or repairs.

    Statements by Simpson Galleries regarding the condition of objects are for guidance only and should not be relied upon as statements of fact and do not constitute a representation, warranty, or assumption of liability by Simpson Galleries. All lots offered are sold "AS IS."

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