Shopping Cart
There are no more items in your cart
The State of South Carolina - Sterling Funded Debt Bond (Series "Whorehouse Bond") - Historical Certificate (1871)
This rare certificate represents a debt bond of the State of South Carolina issued in 1871, with a nominal value of £100at a 6% interest rate, payable in London. Informally known as the "Whorehouse Bond," this bond is linked to one of the most controversial chapters in American financial history. According to period accounts, Governor Robert K. Scott allegedly abused his power by issuing far more bonds than necessary, with frequent visits to night entertainment venues where employees assisted him in approving additional debt issues.
-
Historical significance: This bond is part of a series of issuances that marked South Carolina’s financial history. It was originally supposed to amount to $1.2 million, but under Scott's administration, over $22 million was issued, leading to a severe crisis of confidence and the bond's infamous reputation as the "Whorehouse Bond."
-
Design and artistic details: The certificate features an elaborate border with engravings depicting allegorical and patriotic figures. The £100 value is prominently displayed, along with the original coupons attesting to interest payments, which are in excellent condition. The reverse side includes additional terms and certification of South Carolina's financial debt.
-
Rarity and collectible appeal: The dark and intriguing history of this bond, involving prominent figures and financial scandal, makes it a unique and highly valued piece for scripophily collectors. Municipal bond collectors seek it for its notorious reputation and the unique circumstances of its issuance.
-
Condition: Excellent, with coupons and payment stamps well-preserved. The visible perforation marks the official cancellation, highlighting the historical repudiation of the bond, which enhances its collectible appeal.
This bond is a unique opportunity for historical finance collectors, representing not only an investment but also a captivating story of how excess and corruption can impact the financial system.
