Bonds and Bondholders: British Investors and Mexico's Foreign Debt, 1824-1888

(Hardback)

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Within a few years of their liberation from Spanish rule in the 1820s, several of the new Spanish American republics floated loans in London's financial market. All the debtor nations, from Mexico to Chile, had defaulted within five years, a situation which resulted in their exclusion from European capital markets for much of the 19th century. Most studies of such debt approach the subject from the debtor's viewpoint, some arguing that the British government was an economic imperialist. Concentrating on Mexico, this book provides an important corrective, focusing on the creditors, the individual investors who risked their money to buy bonds. These investors ranged from country clergy to politicians of the rank of Benjamin Disraeli. Thousands of investors lost their money due to Mexico's persistent defaults and failure to pay the promised dividends. They were represented by the Committee of Mexican Bondholders, a London based organization established in 1830 to negotiate a settlement of the debt with the Mexican government. Almost sixty years of futile discussions followed, with the debt rescheduled on several occasions until the final settlement in the 1880s. Costeloe analyzes the negotiations, the bond issues, the identity of the bondholders, the activities of the Committee, and the attitude of the British government. By concentrating on the creditor, he brings a new perspective to the whole issue of Third World or foreign debt in the 19th century.

Reviews

[A]n essential and definitive reference for anyone working on the details of Mexico's nineteenth-century finances, as well as a useful handbook for bond collectors worldwide. It is difficult for this reader to imagine any further descriptive work on the Mexican bonds and bondholders surpassing this one in its care, detail, and clarity.-American Historical Review
[A]n invaluable and reliable reference to the mechanics and modalities of default, renegotiation, and conversion lending in Mexico....Reading this excellent book forcefully reminds one that if the past is a foreign country, the Mexican past is, if anything, even more remote.-The International History Review
An excellent work of historical research full of hard-to-find information, this book should be in the collection of any library, public or private, that attempts to cover nineteenth-century Mexican and British finance history.-Albion
The details of Mexican debt history provided by Costeloe do constitute an addition to the literature and certainly will prove quite useful for future economic historians interested in extracting analytical mileage from the documents and materials consulted.-EH.NET
The wealth of information on the identity of British bondholders and how committees acted on their behalf recommends this book as a welcome addition to the literature. Of interest also will be the great number of primary sources used which offer the specialist a rich resource for further research: financial journals, committee reports, newspaper accounts, photographs of actual bonds and bondholders, and other various prominent archival material.-Enterprise & Society
"An essential and definitive reference for anyone working on the details of Mexico's nineteenth-century finances, as well as a useful handbook for bond collectors worldwide. It is difficult for this reader to imagine any further descriptive work on the Mexican bonds and bondholders surpassing this one in its care, detail, and clarity."-American Historical Review
"An invaluable and reliable reference to the mechanics and modalities of default, renegotiation, and conversion lending in Mexico....Reading this excellent book forcefully reminds one that if the past is a foreign country, the Mexican past is, if anything, even more remote."-The International History Review
"[A]n essential and definitive reference for anyone working on the details of Mexico's nineteenth-century finances, as well as a useful handbook for bond collectors worldwide. It is difficult for this reader to imagine any further descriptive work on the Mexican bonds and bondholders surpassing this one in its care, detail, and clarity."-American Historical Review
"[A]n invaluable and reliable reference to the mechanics and modalities of default, renegotiation, and conversion lending in Mexico....Reading this excellent book forcefully reminds one that if the past is a foreign country, the Mexican past is, if anything, even more remote."-The International History Review
"An excellent work of historical research full of hard-to-find information, this book should be in the collection of any library, public or private, that attempts to cover nineteenth-century Mexican and British finance history."-Albion
"The details of Mexican debt history provided by Costeloe do constitute an addition to the literature and certainly will prove quite useful for future economic historians interested in extracting analytical mileage from the documents and materials consulted."-EH.NET
"The wealth of information on the identity of British bondholders and how committees acted on their behalf recommends this book as a welcome addition to the literature. Of interest also will be the great number of primary sources used which offer the specialist a rich resource for further research: financial journals, committee reports, newspaper accounts, photographs of actual bonds and bondholders, and other various prominent archival material."-Enterprise & Society

Author Bio

MICHAEL P. COSTELOE is Professor Emeritus and Senior Research Fellow of Hispanic and Latin American Studies at the University of Bristol. He is a Fellow of both the British Royal Historical Society and Mexico's Academia de la Historia.