$5 29th Year Reconstruction Gold Loan Republic of China - 1940 dated Chinese Bond (Uncanceled)
Inv# FB5105 Bond
$5 5% United States Dollar Uncanceled Chinese Bond. Multiple coupons present. Article relating to this Chinese item: https://www.bloomberg.com/news/articles/2019-08-29/trump-s-new-trade-war-weapon-might-just-be-antique-china-debt
The Provisional Government of the Republic of China functioned as a puppet state of the Empire of Japan from 1937 to 1940 during the Second Sino-Japanese War. Its establishment was primarily driven by commanders of the Imperial Japanese Army in northern China, who later obtained approval from Japanese officials in Tokyo. Consequently, the Provisional Government held nominal power in the Japanese-occupied regions of northern China. In contrast, the Central China Expeditionary Army established the Reformed Government of the Republic of China in 1938, which governed the Yangtze River area. Both governments effectively acted as local extensions of Japanese military authority, as Japanese advisors wielded significant influence over Chinese bureaucrats within the Provisional Government, and it made no efforts to gain international recognition, even from Japan itself.
Following the conquest of Northern China, the Japanese Imperial General Headquarters sanctioned the formation of a collaborationist regime as part of its broader strategy to create an autonomous buffer zone between China and the Japanese-controlled territory of Manchukuo. This initiative initially led to the establishment of local and provincial autonomous administrations, such as the East Hebei Autonomous Government. Throughout 1937, plans were developed to consolidate these smaller entities into a single regime that would serve as a prospective central government for China. The Provisional Government aimed to unify these local councils and nominally governed the provinces of Hopei, Shantung, Shansi, Henan, and Kiangsu. However, its actual influence was largely confined to areas under permanent Japanese military control, primarily in major cities and along railways. The authority of the Provisional Government was further constrained by the presence of the Inner Mongolian autonomous government and the ongoing resistance from the East Hebei Government to complete integration.
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.
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