The tobacco monopoly was established in Danzig on March 31, 1927, a concession for 20 years with the possibility of extension was granted to Danziger Tabakmonopol AG.
A 6.5% loan from the Free City of Danzig in 1927, secured by tobacco monopoly proceeds and excise taxes on spirits, was issued for the sum of £1,900,000.
In September 1937, on the basis of a memorandum of August 27, 1937, the loan was converted - the interest rate was reduced to 4.5%, and the redemption period was extended to 1952. In November 1937, bondholders were asked to submit their bonds for stamping - 99% of holders accepted this proposal.
Some of the bonds (about 15%) were also overprinted with "Danziger Besitz" (German: "Danzig Property") - according to a decree of April 25, 1939, all bondholders living in Danzig were required to submit their bonds to the Bank of Danzig for conversion into guilder bonds (by stamping them as payable in guilders at the Bank of Danzig at a rate of 25 guilders per pound).
The subject of this auction is a £50 "Tobacco Monopoly" loan bond, converted according to 1937 rules (overprinted to reduce the interest rate and extend the maturity in the upper left corner). In addition, this is a rarer version with "Danziger Besitz" overprint. Highly recommended - an opportunity to acquire a rare and interesting Danzig paper.
