Owner Comments:
As King Ludwig sat in is luxurious office, he looked on grimly to the disheveled stacks of uncountable papers upon his mail desk. “Difficult it is to be a king, for everybody seeks something from you, all await your decisions in strained anticipation, always writing petitions and entreaties of some sort.. they will nail you to your desk and force decision-making straight out of your head.” With a labored exhalation, the King looked on to the Minister’s standing figure before him. This was Ludwig Kraft Ernst, the Minister of the Interior and the Prince of Oettingen-Wallerstein. “Here, Ludwig,” - he began aloud - “look over these petitions again, these documents, for it is again time to make decisions for the good of the realm.. Would you by chance be of assistance to me in sorting out what’s what here?” Upon saying this, King Ludwig leaned back upon his splendid chair in utter exhaustion. “Well of course, Your Highness!” Exclaimed Ludwig Oettingen-Wallerstein as he bowed deeply before the depleted sovereign. “In fact, it is all very simple, for your subjects again entreat you for money! These petitions are, after all, from the Bavarian Peasants’ League,” he said, pointing to the papers aggressively stacked and growling ink upon the King’s table. The King protested, "but they always petition for more money, even from the times of my father! And we always took it upon ourselves to lend them our aid - to our farmers, especially following the Napoleonic War - do you not remember that destruction? Our coffers are not bottomless; we need to figure out how to aid the farmers and to extract some benefit for ourselves, for the government.. To create, for instance, a league of financial assistance, and to attract other wealthy benefactors - for in Bavaria we have plenty of rich folk! Let them help, and lighten the burden upon the shoulders of the Monarch!” With a smile of tremendous respect, Ludwig Oettingen-Wallerstein exclaimed, “Golden words, your Majesty!” With a bow, he offered several documents that he held in his hands. “In fact, I have brought to you the Charter of a new organization - a financial organization, a Bank. If you recollect our past discussions on this matter, I have finally brought to you the refined final copy of this Charter.” The King’s eyes shone as he seized the paperwork and began to scan it with fantastic intent, “Interesting... Mortgage, credit, insurance, bonds - could you please explain some of this unintelligible jargon for me?” The Minister of the Interior stepped in, “it is all very simple, Your Highness! The bank is designed to specialize in the issuing of credit for land purchases - to assist the farmers. It will necessitate sixty percent of the nation’s capital, leaving 40% for other governmental aims - to help industrial development and the building of roads, and to simply lend to Bavarians. We will also help our wealthy compatriots by establishing a fine percentage for their contributions, issuing securities which they later could exchange for money and profit. All benefit and the bank receives profit which then gets divided between stockholders.” “Very interesting!” brightly exclaimed the King, “and I, as the Monarch, could also become a stockholder?” “Of course, your Majesty,” replied the Minister, “you with your accumulated wealth can become the main shareholder! Although, the most important detail to remember is...” After a momentary pause for effect, the Minister continued, “this bank will be a solid establishment under the protection of your Crown. This will give investors tremendous security and they will deliver their money sure-heartedly!” The King brightened considerably to this, crying, “How genial!” He arose, growing to the peak of his height, “A governmental, national and simultaneously wealthy bank for the glory of Bavaria! This incredibly patriotic institution will protect the farmers, artisans and tradesmen against usurpers, helping them to meet their loan-related needs at the bright dawn of revolution in agriculture and industry! This is truly a matter worthy of the King!” And so King Ludwig, bending his luxurious raiments over the desk, left his ornate signature upon the Charter of the new Bank.
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And so it was that by this proclamation the Hypo-Bank was born on the 15th of October 1835. It became known as the “Central Bank of Bavaria” and it was the first bank that had the right to issue paper currency. King Ludwig himself was a primary shareholder, providing 400,000 of the initial capital investment of ten million gulden. The creation of the Hypo-Bank was probably one of the most important actions taken by King Ludwig on behalf of the Bavarian people. It provided long-term financing of industrial loans on a mortgage basis, which indeed helped national industrialization greatly. What’s interesting about the Hypo-Bank is that it was the first bank designated to underwrite insurance, an absolute novelty at the time. The famous German historian Kramer wrote that “it was the most wise and charitable order for the consequences it brought forth. The founding of the Mortgage Bank, becoming the national bank of the Bavarian royalty, became the apex of authentic royal foresight and wisdom.”
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German Talers since 1800 by John S. Davenport.
Bavaria, King Ludwig I Series (1825 - 1848).
Taler 1835, MORTGAGE BANK.
Davenport 574, KM 777 (408), Thun 66, AKS 133, J.48.
Commemorative - for the establishment of the Bavarian Mortgage Bank.
Obverse: Head of the Ludwig I to the right, LUDWIG I KOENIG VON BAYERN. ZEHN EINE FEINE MARK
Reverse: ERRICHTUNG DER BAYERISCHEN HYPOTHEKEN-BANK, female figure leaning on pedestal, 1835 below.
NGC MS 63.
28.0600 g., 0.83300 Silver, 0.7515 oz. ASW.
Another great example of the "Historic Talers" of Ludwig I of Bavaria - to Commemorate First Mortgage Bank. Slightly toned, clear fields reflect some rubbing marks, more prominent on reverse, otherwise is nice uncirculated specimen. Certified by NGC and graded as MS 63 - great collectible and investment coin!!