Introduction
Dear Sir or Madame,
We welcome you to our journey through five centuries of financial
history. In the catalogue at hand we present the 50 finest, most in-
teresting, for the economic development most important and rarest
stocks and bonds of our spring auction. The offered stocks and bonds
helped to finance bold projects, helped to make visions come true and
influenced the course of history. All offered stocks and bonds were
needed to finance these projects. Behind them were venturous inve-
stors on the one hand and entrepreneurs willing to take risks on the
other hand.
All these risky projects could be financed, because the risks were
spread to many shoulders. The share certificate of the Warsaw-Vien-
na-Railway Company, issued in 1839, is a nice example for that: It shows that there was a globalized financial market even 174 years
ago. 5,000 Founder’s shares were issued. 1,500 of them were sold in Warsaw to the founders and sponsors of the project, 1,500 were
placed in London and 2,000 shares were sold in Vienna. This was the reason for the design of the share certificate: The text was in
three languages, in German, Polish and Russian and the nominal value was in British Pounds and in Zloty. Share certificates were not
only used as interpreter, they also had to do marketing for the investment. This was the reason, why many certificates were designed
superb. A nice share certificate had to promise a nice investment.
But there is not only a positive effect of stocks and bonds like the promotion of innovation
and economic development. There is also a warning aspect. The issuance of bonds is a chance
to acquire financial means, which were not earned. But this works only for a short time – but
politicians only think to the next election. With bonds you take a mortgage for the future and
for future generations. We have in the auction many examples showing how the current situ-
ation became more bearable, but the future problems got bigger. Whether the imperial city of
Augsburg in Germany, the cities of Kasan or Krémentchoug in Russia or Libau in Lativa: The
invoice has always paid by the citizens. Either through higher taxes in the future – interest and
redemption had to be paid – or by the citizens who invested in those bonds and lost all or parts
of their money in the end.
If the lend money is used reasonable, it can lead to a tremendous boost. Shanghai Volkswagen,
on which German Volkswagen holds a stake, for example, financed its rapid growth through the
issuance of bonds. Many American railroad companies financed their fast expansion through
the issuance of bonds already 100 years earlier. And almost 200 years ago, Irish sheep farmers
used the power of credit to create fast a large flock of marino sheeps by importing them from
Spain. They also financed the procession of the wool and created many jobs this way. The
example of the Marino Factory shows very plainly that lend money can promote the social
development, too. The financial means enabled many social activities which mostly led to a
social advancement of the working children.
Revolutions were financed by bonds, too. Sun Yat-Sen, founder of the Republic of China, financed his struggle in the underground
by selling bonds. A German revolutionary went another way: Robert Blum knew stocks and bonds – he planned to incorporate a
joint-stock-company for his bookselling trade, but for his revolutionary idea he pit on the power of his voice and not on financial
resources.
You see, many projects, which were financed by issuing stocks and bonds, are
responsible that our world looks like it looks.
With this we are at the end of our little journey through five centuries of financial
history. We sincerely invite you to the auction of these 50 contemporary wit-
nesses of the bull and bear markets. The auction will take place on 20 April 2013
starting at 1.10 p.m. in Würzburg. Use this unique opportunity and write your
own chapter of financial history.
Sincerely yours,
Matthias Schmitt
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