Dutch Securities for American Land Speculation in the Late Eighteenth Century

Abstract

Dutch investors have historically played an important role in American Wnance. The Wnanciers of the American Revolution turned to the Dutch markets for loans to support their war eVort and, with Hamilton's visionary restructuring of the American debt, the Dutch early faith in American promises paid oV handsomely. On the heels of their successful Wnancial investment in early US government bonds, Dutch investors in the 1790s turned their attention-and money-toward the speculative potential of the American land itself. Two of the most important foreign investments in American land development prior to the nineteenth century were the Dutch loans for the purchase of vast tracts of lots in the newly designated capital city of Washington, DC, and the Holland Land Company loans to purchase, promote, develop, and resell large sections of western New York State, with tracts that included the future Erie Canal. Both of these projects

Securitization: A Financing Vehicle for All Seasons?

“…(Buchanan, 2014) surveys the earlier origins of "crude" forms of securitization starting with the 12 th century Genoese compera through to early 20 th century efforts. 21 A negotiate, or plantation loan, is the forerunner of the mortgage backed security (Riley, 1980;Rouwenhorst, 2005;Frehen et al, 2013). Pioneered by the Deutz Company in 1695, a negotiate organized credit secured on plantation assets and was serviced by revenues obtained from expected coffee and sugar production.…”

Conceptualizing dynamic challenges to global financial diffusion: Islamic finance and the grafting of sukuk

“…Through the trust, Bank Islam, as lead arranger, and the nine other banks and firms bought these assets for the MDS plant that were then sold back to Shell MDS at a profit. Securitization was, however, not a new concept but was a practice that had a long history in the conventional sector dating as far back as at least the eighteenth century (Frehen et al 2014). What was new in the Shell MDS instrument, in our view, is the grafting of Islamic arguments onto a modified form of a securitized loan to ensure its ethical acceptance.…”

Inequality and finance in a rent economy

“…securitisation), is not a recent financial practice. It dates back to the 18th century when it appeared in the Dutch financial market (Frehen et al, 2014). However, over the last thirty years it reached unprecedent levels.…”