Hukuang Railway Bonds of 1911

As an intern working with the Museum's collections, a document from the Hukuang Railways Sinking Fund Gold Loan of 1911, or the "Hukuang Bond," has become one of my favorites. The rich history behind this document impacted both China and the United States.

The last imperial Chinese government in the Qing (Manchu) Dynasty issued the Hukuang Bond. Just prior to the dynasty's collapse, it issued millions of dollars' worth of railway bonds, including the $6 million Hukuang Loan in 1911. The certificate is larger than most other bond documents, measuring 20x16 inches, and its terms are framed by a complex pattern to prevent counterfeiting. The bond was designed by Waterlow & Sons, a major London printer of securities and financial documents, and it features a locomotive vignette.

The Hukuang Railways consisted of two routes, the Canton-Hankou Railway and the Sichuan-Hankou Railway, which covered a total distance of approximately 2,545 miles. It was one of the country's most complicated railways and united central China with its coasts.

The Hukuang Bond was ordered by the Minister of Post and Communications, Sheng Hsuanhuai, on May 9, 1911, and was part of the nationalization of all locallycontrolled railway projects. On May 20, the Minister signed the loan agreement with the four-nation Banking Consortium and pledged the rights to operate the railroads. Initially in 1909, the credit was to be underwritten by a consortium of French, German and British banks, and by 1911 the United States had joined the consortium too. The four countries were to share equally in the £6 million bond issue of the Hukuang Railways. US participation in the bond issue was part of President William Howard Taft's policy of "dollar diplomacy," which began at the start of the 20th century.

On the Hukuang Bond, below the Chinese Minister's signature, are the underwriting American banks: J.P. Morgan and Co., Kuhn, Loeb and Co., the First...