“Our Hero, George Washington, Wins the War, then Buys
Stock in the Company!”
by John E. Herzog
The reverse of the 1792 U. S. Bond signed by George Washington
Rare and Historic United States Loan Office Certificate Issued to George
Washington
The most highly prized stock and bond certificates signed by important people
usually have a backstory, and the 1792 U.S. Federal bond signed by George
Washington, scheduled for auction on October 19th at the Museum of American
Finance, is no exception.
In order to establish the national credit, and also to liquefy and reorganize the
outstanding debt after the Revolutionary War, U. S. Treasury Secretary Alexander
Hamilton proposed the Plan of Assumption, to exchange all state debt for new
U.S. Treasury bonds, reflecting the struggle for independence as national, rather
than local. All state debt instruments were to be exchanged at face value, and the
numerous state obligations would receive one of only six new Treasury issues.
This made the marketplace far more efficient as investor interest could be
focused on only six issues. This bold plan was highly controversial, and resulted in
a stalemate in Congress, resolved months later through a political agreement on a
new location for the capital of the nation on the Potomac, in what was to become
Washington, DC.
The plan was extremely successful, and formalized the national debt which was
held by a broad cross section of the population, and in a few years this debt
became one of the highest credits in the world. The new Treasury bonds were
among the first securities traded on the New York Stock Exchange, another
institution Hamilton encouraged. The Plan of Assumption was one of the crucial
elements of Hamilton’s advanced financial infrastructure which created the
environment for the rapid growth of the 19th century. This exceedingly rare bond
is one of the most important objects in American financial history, and the first
example of this instrument to be offered in public auction; serious interest is
expected.
One of the first U. S. Treasury bonds, dated January 17, 1792, size 17 3/4”x 5
1/2”, Anderson US-195. Odd denomination $123.99 resulting from the exchange
formula for Washington’s non-performing Virginia bonds surrendered.
Exceedingly rare and part of the Copps Collection, only two others like it are
known - one exhibited in the Museum of American Finance, and another at
George Washington University Library.
Washington later sold this bond, and in the note on the verso asked that the
proceeds be kept in his account at the Treasury, and then signed his name. A very
patriotic choice to leave his funds in the U.S. Treasury, as the government was in
crisis mode dealing with the Whiskey Rebellion in western Pennsylvania.
The auction Saturday at 10:30am, October 19, is part of the annual Wall Street
Coin, Currency and Collectibles Show, taking place at the Museum of American
Finance, 44 Wall Street, New York City, October 17 – 19, 2013. Museum
admission is free for the Bourse weekend.
Show info: wallstreetbourse.com and 203-292-6819.
Auction Info: archivesinternational.com and 201-944-4800
The face of the 1792 George Washington Bond
IMPORTANT 1792 US FEDERAL BOND ISSUED TO AND SIGNED BY
GEORGE WASHINGTON AS PRESIDENT WAS HIGHLIGHT OF
OCTOBER 19TH 2013 ARCHIVES INTERNATIONAL AUCTION AND
SOLD FOR A RECORD PRICE OF $225,000 PLUS PREMIUM.