A glimpse into 18th-century Dutch finance: manuscript sale of lottery bonds

This fascinating manuscript, dated Rotterdam, 10 June 1793, records the auction sale of three intriguing financial instruments: lottery bonds. Sold on behalf of Willem Suermondt (1740-1828), a prominent merchant who later rose to become burgomaster of Rotterdam, these bonds offer a direct connection to the innovative ways the Dutch Republic financed its endeavours in the 18th century.

The manuscript details the sale, brokered by M M Van der Loeff, of:

• Two bonds (f 200) from the Lottery of 1711, dated 1 July 1771.

• One significant bond (f 1000) from the Lottery of 1746, dated April 1746.

These bonds were sold at auction for a combined price of f 1300. After paying 26% auction fees to Van der Loeff, Suermondt was left with f 962.

The concept of lottery loans was a unique financial tool utilized by the Dutch Republic, particularly the province of Holland, to raise public funds, especially during times of war and fiscal need. These instruments cleverly blended the characteristics of traditional bonds with the enticing element of a lottery.

Investors would purchase these bonds, often at a modest interest rate and tax-free, with the added possibility of their bond being drawn in a periodic lottery and repurchased by the government at a premium (the supplement), offering a substantial return.

This manuscript not only provides a snapshot of a specific financial transaction involving a notable historical figure but also illuminates the sophisticated financial mechanisms at play in the 18th-century Dutch Republic. It's a tangible link to a time when finance and chance intertwined to fund the state.