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Genuine GERMAN WW2 WAR BOND / LOAN CERTIFICATE  

€10
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  • Date Listed08/03/2018
  • Location

Genuine GERMAN WW2 WAR BOND / LOAN CERTIFICATE dated 1st October 1941 for 1000 Reichmark in very good condition.

War bonds are debt securities issued by a government to finance military operations and other expenditure in times of war.

The German Third Reich regime never attempted to convince the general populace to buy long-term war bonds as had been done during the 1st World War. The Reich Government did not want to present any form of public referendum on the war, which would be the indirect result if a bond drive did poorly. Rather, the regime financed its war efforts by borrowing directly from financial institutions, using short-term war bonds as collateral. German bankers, with no demonstration of resistance, agreed to taking state bonds. Financial institutions transferred their money to the Finance Department in exchange for promissory notes. Through this strategy, 40 million bank and investment accounts were quietly converted into war bonds, providing the Reich government with a continuous supply of money. Likewise, German bank commissioners compelled occupied Czechoslovakia to buy up German war bonds. By the end of the war, German war bonds accounted for 70% of investments held by Czechoslovakian banks.

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