Whether it was the accumulated war debts or the aftermath of post-war reparations, governments often faced financial obligations that were paid over decades or even centuries. In this article, we'll highlight six debts that have been paid off over the years. In some cases, these debts were simply written off or forgotten. In other cases, however, related lawsuits lasted decades.
Historians say that borrowers and lenders have been around for about 5,000 years. The oldest known text describing debt is the laws of Hammurabi, which are approximately 4,000 years old. It reads:
"The lender has no right to take barley from the debtor's house without his consent."
In more agrarian communities, debt was seen as the first source of slavery. People took on such large debts that one day they lost everything and still continued to be indebted to the person who took their rights and used them in forced labor "until their debt was paid."
Debt has played a much larger role in our history, and modern society shows us that few people have seen this side of history, because they themselves are homeless due to debt. Whether we talk about one person or an entire country, debt has always had devastating results for those who are in debt.
Dutch maritime debts
Historical Ledkdijk Bovendams (current value $ 50,000) (1634)
Some of the oldest debts originated in the 17th century and were created by a man named Hoogheemraadschap van de Lekdijk Bovendams (yes, that's the real name), a Dutch naval officer in charge of maintaining water levels. The first promissory note was issued to raise funds to help repair the dam he was in charge of. Another commitment from 1648 was printed on goatskin to help build supports on the Lek River. Yale University offered $ 25,000 for the purchase of the 1648 Debt, which was originally worth more than $ 500. The university bought 368-year bonds at their historical cost. Since no maturity date has been specified, the debt is still outstanding.
British 4 percent consoles
In 2014, the British government announced its plan to pay off part of the debt dating back to the 18th century. The debt existed in the form of a perpetual bond obtained from a "4% loan" issued by Prime Minister Stanley Baldwin in 1927 to refinance government loans during World War I. But this "4%" contained much more than the debts of the First World War.
Britain during the financial disaster of 1720 known as the South Sea Bubble
Decades of regulation and refinancing added to bonds from Napoleon and the Crimean War. A loan of 1847 helped Ireland during the famine, and another substantial amount of money was used to compensate for the losses of slaveholders following the British Emancipation Act. One of the oldest debts came from a bailout plan that was preceded by the South Sea bubble - the financial collapse of 1720.
Pensions during the Civil War
The American Civil War ended in 1865, but a century and a half later, a woman from the United States continued to receive a government pension for her father's service in the Union Army. Irene Triplett is the daughter of Private Moses Triplett, a North Carolina farmer who went to war as a young Confederate soldier, after which he switched sides and joined the Kirk's Raiders Union regiment.
American Civil War
Triplet survived the war and later married a woman fifty years his junior. Moz was 83 years old when his daughter was born, but he died a few months later. Irene Triplett, 86, continued to receive a monthly pension of $ 73 for her father's service during the Civil War. This woman, who died on May 31, 2020, was the last living child of a Civil War soldier.
Germany's debt during World War I
The Treaty of Versailles of 1919 ended the First World War, but also marked the beginning of the payment of war reparations, which demanded huge sums from Germany. Under the Guilt Clause of the peace agreement, Germany was declared guilty of the conflict and was forced to compensate the allied countries 132 billion gold marks, that is, the equivalent of $ 400 billion (excluding inflation).
The Treaty of Versailles is signed, 1919
To pay off the debt, Germany was forced to print money. In 1950, the Federal Republic of Germany decided to continue paying off obligations that arose before World War II. They were paid in 2010, 91 years after the Treaty of Versailles.
Independence debt of Haiti
In 1791, African slaves on the Caribbean island of San Domingo began a bloody rebellion against their masters. The uprising culminated in the founding of the Republic of Haiti in 1804, but everything comes at a price. The United States and all European countries refused to officially recognize Haiti, and in 1825 France sent warships to Haiti. The Haitian government has agreed to pay compensation to France in the amount of 90 million gold francs.
Image of a Haitian revolutionary fighting for his independence
This amount was five times the country's annual income, and its population managed to pay it in full in 1947, 120 years after its inception. Activists and politicians campaigned for France to return the money it received from the Haitian government. Adjusted for inflation, this would be roughly $ 20 billion.