"Super Petchili" 1913 Government Chinese Republic – 5% Lung-Tsing-U-Haï Railway Gold Loan – £20 With PASSCO Certificate of Authentication

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Super Petchili 1913 Government Chinese Republic – 5% Lung-Tsing-U-Haï Railway Gold Loan – £20

Passco certificate of authenticity

🇨🇳 Super Petchili Bond – 1913 Lung-Tsing-U-Haï Railway Gold Loan

🔹 Background

In the early 20th century, China was modernizing its infrastructure, and one of the major focuses was the development of railway networks. The Lung-Tsing-U-Haï Railway project aimed to connect strategic regions across northern China, including Lung-tsing (Beijing) to Haïkou in the south.

To finance these massive undertakings, China turned to international creditors, resulting in a series of foreign-backed bond issuances known collectively as the Chinese Reorganization Loans. The 1913 Gold Loan was one of the most prominent.

💰 Key Features of the Bond

• Date Issued: 1913

• Issuer: Republic of China (early Republican period after the fall of the Qing Dynasty)

• Purpose: Financing of the Lung-Tsing-U-Haï Railway

• Loan Amount: £10 million (British pounds)

• Denomination: £20.

• Interest Rate: Generally 5% annually (gold-backed)

• Currency: Payable in gold coin (Sterling equivalent), adding strong international appeal

• Language: Bilingual (English & French), sometimes trilingual with Chinese

• Signatories: Often includes seals and signatures of major European banking syndicates

🌎 Why It's Called “Super Petchili”

The term "Petchili" (also spelled "Pei-Chili" or "Pei-chih-li") refers to a region in northern China, particularly around Zhili Province (now Hebei). Bonds associated with infrastructure or loans from this region became broadly known as Petchili bonds.

The “Super” part of the nickname refers to the rarity, large denominations, and prestigious backing of this particular issue compared to more common Petchili bonds. These bonds were part of a major international syndicate, backed by British, French, German, and other European banks.

🏛️ Key characteristics and historical context

• Purpose: The bonds were issued to raise funds for the construction and equipment of the Lung-Tsing-U-Haï Railway. They also helped redeem previous railway loans.
• Issuance: The total authorized loan was £10,000,000 Sterling, but only £4,000,000 were issued in 1913. They were offered in Brussels and Paris by the Banque Belge on behalf of the Co. Gen. Chemins de Fer et de Tramways en Chine.
• Denomination: Bonds were typically issued in denominations like £20 sterling or 500 French francs.
• Direct Obligation: These bonds were a direct obligation of the Government of the Republic of China and were payable in gold.
• Default: The Chinese government defaulted on these bonds in 1938 due to political instability, including the Shanghai massacre of 1927 and subsequent civil war.
• Modern Claims: While the bonds reached their redemption date in 1953, there have been ongoing discussions and even legal actions regarding the potential for modern-day China to honor these historical debts. Some bondholders argue that the current Chinese government is a successor to the issuing government and thus has an obligation to pay. There is historical precedent for such settlements, as seen in the UK's successful claim in 1987. Recent legislative efforts in the US have also aimed to restrict China's access to US capital markets if it fails to comply with international finance laws related to these bonds.

In summary, the "Super Petchili 1913 Government Chinese Republic – 5% Lung-Tsing-U-Haï Railway" bond represents a piece of significant financial and historical interest, reflecting foreign investment in China's infrastructure during a period of considerable political change. While largely considered collectible items today, the question of their potential modern-day value remains a subject of ongoing debate.

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