Numismatikforum

A Haitian 100-centimes dated 1830 (An 27). This rather large (31mm, 10.40gr) silver piece is an interesting study. See “Republique d’ Haiti,” when in the Western Hemisphere “republic” was still a very new reality (not even a single lifetime old). And note the dating done French-Revolutionary style, which here begins, ironically, with the Haitian defeat of the French army in 1803.

Haiti declared its independence in 1804, but the fact went unrecognized by France. President J.P. Boyer (of this coin’s obverse) had been in office in 1825 when the French sent a fleet of warships to Haiti carrying a demand by Charles X for restitution of French property losses suffered during the slave revolt which gave Haiti its freedom. The “property” lost, of course, included the slaves themselves—and France demanded 150,000,000 gold francs.

Under the circumstances the pictured President Boyer had no choice but to agree, and did. The amount far outstripped Haiti’s ability to pay, of course, and so the French demand was later reduced. Nevertheless, between 1825 and 1947, it is reported that 90,000,000 gold francs were paid by Haiti to France as “restitution” (and interest, and bank fees) for the freed French slaves.

v.

Thank you for coin and story! Very strange that payments still were made in 1947. Do you know if Haiti paid during wartime to the Vichy- or to the deGaulle-government? Best regards, KarlAntonMartini

Thanks KAM, for asking. I’d had approximately the same questions as I was writing, but was too lazy to go further on my own. (Another question that I’d played off was the “gold” francs bit—France had dumped the Franc Germinal for the Franc Poincare during the late-‘20s, so it had briefly occurred to me to wonder how that had affected things, since the final repayment had been reported as 1947.

Anyway, what I’ve pieced together goes like this: The original 1825 demand for 150,000,000 gold francs was “renegotiated” downward in 1838 to 60,000,000 gold francs, with financing arranged through a French bank.

There is some confusion (perhaps encouraged) about the “Independence Debt” pay-off during the latter part of the 19th century, but what was happening was mere refinancing.

Haiti had made extreme efforts to repay the “Independence Debt,” but little real progress had been made by the turn of the century. In 1915 the U.S. intervened in Haiti for various reasons related to political and financial stability, and WWI. The Americans occupied Haiti until 1934.

American overreach (and more than a little private and public misbehavior) caused considerable difficulties through the early ‘20s, but things took a turn for the better in 1922—official reports detail the realization that Haiti could save considerable money by paying off its “Independence Debt” to France with francs bought with dollars at a very favorable exchange rate: 10-1, whereas the pre-WWI rate had been about 5-1. (There was also some suggestion of bureaucratic backbiting in what I read, as it was noted that a rate of 17-1 could have been had not long before).

Anyway, under American auspices, in October 1922 Haiti issued $16 million in 30-year bonds maturing in 1952 whose purpose was stated thusly: “The proceeds of the bonds will be used for refunding two Haitian loans outstanding in France to the amount of about Fcs 85,838,500, and to provide funds for paying internal floating debt , and for other governmental programs, including public works.”

The bonds were guaranteed by the American government and sold out almost at once. France, then, was paid off by about 1922, just short of a century after Charles X sent his warships to visit Haiti. (Which also answers the question about gold francs.)

Haiti, however, was still paying the 1825 demand, as modified in 1838. (Although who the bonds purchasers were I cannot say.) Haiti reacquired its national bank from the Americans in 1934, and about 1941 Haiti’s national bank took over responsibility for the debt’s continued service.

All the sources I read say the debt was finally paid in 1947. Why were the bonds retired 5 years early? I just can’t say for sure.

Thanks for the questions, KAM. Good chance to learn.

v.

villa66 hat geschrieben:l

All the sources I read say the debt was finally paid in 1947. Why were the bonds retired 5 years early? I just can’t say for sure.

Official documents from this source:

http://books.google.de/books?id=i0Q6AQA ... 47&f=false

explain the matter. 1947 the remainder of the old debt (6 % interest p.a.) was paid back with fresh money of an "internal loan" of 10 Mio. US-$.

Best regards, KarlAntonMartini

So a joint development project. A decent way to cut off one of the less attractive episodes in human history. I had been wondering if some of the money Haiti had used in the pay-off had come from the indemnity paid by the Dominican Republic as a result of the 1937 massacre.

v.