The degree of enthusiasm related to the speculation of these bonds is truly unprecedented.
It should be made very clear that only the £20 denomination was issued and this should not be confused with the Capitalization of £500,000 Sterling. This lofty amount is simply the total face value of the entire issue of 25,000 bonds.
There was only one type of Petchili and so it should not be confused with other Chinese bonds. There has been a rash of requests for “Super Petchili’s”. It appears that this nickname has been given to the Government of the Chinese Republic 5% Gold Loan of 1913 for the Lung-Tsing-U-Hai Railway, Capitalization of £10 Million.
Petchili’s are now very rare as few pieces enter the marketplace. Prices have risen steadily over the past year and demand is strong.
The following brief history is from “Historic Foreign Bonds of China” published in 2012 by John M. Thomson.
The loan was, “Created by virtue of a resolution of the Assembly of the Province of Petchili. By agreement entered into on the 27th January 1913, the Government of the Chinese Republic has sanctioned the above mentioned resolution by guaranteeing absolutely and unconditionally the punctual payment of principal and interest of the present loan”.
The participating financial institution was the Banque de Reports, de Fonds Publics et de Depots. Bearer bonds were floated in both Brussels and Antwerp.
Purpose of Loan
The purpose of the loan was for public works and improvements to be executed in the Province of Petchili. The loan was secured upon a first mortgage on taxes collected and raised by the Province of Petchili on wine and tobacco yields with an additional guarantee from the central government of the Republic of China. Coupons were payable on 1st February and 1st August each year.
It should always be stressed that we sell these bonds for their historical, graphic, and collectible merits only. We always make it clear (though these bonds are uncanceled) that all Chinese bonds are not negotiable. On the other hand, these are the very same bonds that are so sought after and popular. There is absolutely no difference. We sell all these Chinese bonds with accompanying PASS-CO authentications.
A bond is a document of title for a loan. Bonds are issued, not only by businesses, but also by national, state or city governments, or other public bodies, or sometimes by individuals. Bonds are a loan to the company or other body. They are normally repayable within a stated period of time. Bonds earn interest at a fixed rate, which must usually be paid by the undertaking regardless of its financial results. A bondholder is a creditor of the undertaking.