1861 Confederate 20 Dollars on 500 Dollar Bond Loan Coupon - C.S. Loan of Aug. 19th, 1861 - Civil War Era Confederate Loan Interest Coupon

This listing is for the photographed 1861 Confederate States of America 20 Dollar Loan Interest Coupon on a 500 Dollar Bond. Part of the C.S. Loan Bonds issued on August 19th, 1861. The note says that it "will pay to bearer for six months interest due Jan. 1st, 1865." Signed and issued note. Extremely Fine (XF) grade/condition, some minor folds and signs of circulation. Amazing piece of history!

Immediately following the Confederate States secession from the Union, they needed to independently establish their own revenue and monetary production. They began to issue these interest bonds and printing paper currency in order to boost their economy and revenue for their war efforts. Supporters of the Confederate States could buy these interest bonds to donate funds to the government. Bonds were issued with a number of semi-annual coupons, such as these, that the holder could cash in by the coupon's expiration date. The first of the interest bonds were issued by the Confederacy in the same month as their establishment, in February of 1861. The revenue gained from these bonds accounted for 32% of the total Confederate revenue during its existence. Since the Confederacy advocated for states' rights and the Union made it difficult for foreign trade to occur between the Confederacy and other countries, the Confederate States did not advocate for the taxation of their citizens as a form of revenue. Overseas Confederate bond holders would purchase these interest bonds in hopes that the Union would pay off these loans after their victory in the Civil War. But, after the Union's victory they enacted the 14th amendment, which along with other aspects, effectively forbade the recognition of Confederate debt, with all such debt, including these loan coupons, being considered void. These loan bond coupons provide an incredibly interesting look into the funding of the Confederacy during the Civil War! 

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1861 Confederate 20 Dollars on 500 Dollar Bond Loan Coupon - C.S. Loan of Aug. 19th, 1861 - Civil War Era Confederate Loan Interest Coupon