The City of Danzig's 7% mortgage loan of 1925 was issued for the sum of £1,500,000. The purpose of the loan was to complete water and hydroelectric works and expand the port of Danzig. The proceeds of the loan were disbursed under the supervision of the Council of the League of Nations. The loan was secured by city property.
In September 1937, on the basis of a memorandum dated August 27, 1937, the loan was converted - the interest rate was reduced to 5%, and the redemption period was extended to 1950. In November 1937, bondholders were asked to submit their bonds for stamping - 99% of holders accepted this proposal.
Some of the bonds were also overprinted with "Danziger Besitz" - according to a decree of April 25, 1939, all bondholders living in Danzig were required to submit their bonds to the Bank of Danzig for conversion into guilder bonds (by stamping them as payable in guilders at the Bank of Danzig at the rate of 25 guilders per pound).
The object of the auction is a £100 bond, converted as agreed on 27.08.1937 - the imprint indicating the conversion is in the upper left corner of the document. A rare and interesting bond of Danzig. Highly recommended!
Preserved part of the coupon sheet.
