Good History Lesson

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Aug 1, 2008 4:51 pm

Here is another good story for BondGuy.  This one may help restore some faith in people and a system.  Again, it's a short version.


When the Revolutionary War needed troops to fight the British, they were recruited and issued a bond that would be redeemable after the war.  This was to be some of their payment to fight.


As the war came to an end, it was announced that with our "new" government in place, those bonds that were given to the soldiers didn't have to be paid back.  This was devastating to some of these soldiers, so they sold them for less than pennies on the dollar to "speculators".


Buddies from their early American Militia days, George Washington, now president nominated Alexander Hamilton (the guy on your $10 bill) as the first Secretary of Treasury of the United States of America.  One of the first things Hamilton did when he accepted this position was to say that the new U.S. Government would guarantee and pay back every single bond issued to the original Revolutionary War soldiers, in full. 


Tying this bit of history to recent times, when 9/11 happened and the WTC went down, many bonds that were physical held in the towers were destroyed.  Being that these bonds were not able to be redeemed, the issuing companies didn't have to pay them back.


However, since 9/11, every single company whose bonds were destroyed re-issued those bonds and returned them to their owners, even though they didn't have to.
 
In a world full of being able to do the wrong things, it's nice to know some good does exist.
Aug 1, 2008 5:32 pm

Great point, snags!

 
Thanks for the post!