The oldest securities in Bavaria – Bavaria

Eva Moser, head of the Bavarian Economic Archives in Munich, had not expected this at all. That she was now allowed to receive a security that is even older than the paper from Hof, which was previously considered the oldest Bavarian share. The document that surprisingly turned up is a share certificate for the former Carl-Theodor-Zeche in Penzberg from September 30, 1797. This treasure was discovered by Uto Baader, senior manager of the Baader securities bank and chairman of the supervisory board of the Bavarian Stock Exchange. Two years ago, Baader entrusted the business archive with its collection of more than 4,500 historical securities in trust, all of Bavarian origin. It is one of the most important collections of this kind in Germany. Now he submitted this special piece, which opens up a deep look into Bavarian economic history. “I’m really excited to be able to look after this unique document,” says Eva Moser.

The story behind this 225-year-old mining share certificate can be told in a few words: On behalf of the Elector, the Bavarian Mining and Mint Councilor Matthias von Flurl explored the Bavarian mountains to look for mineral resources. In 1792 he noted: “On the other side of the Loysach meet several seams of coal in Benedict Bavaria.” Four years later, the coal mine in Penzberg, which was subordinate to Flurl, opened. Her share certificate is adorned with two miners in period costume and the hopeful formulas “Mit Gott” and “Glück auf” and it bears Flurl’s signature. However, the project was only a short-lived success. Because of the high transport costs, the colliery proved to be unprofitable and ceased operations.

In the paper, the shareholder Böhm undertakes “not only to pay the additional fines that are still required from time to time in accordance with the mining regulations, but also to contribute actively to the joint use of this fuel”. For this he will “also share in all the yields that can be expected with God’s blessing in accordance with the Kuxen ascribed to him”. A Kux means a share in the mine.

With the beginning of industrialization, coal as a source of energy gained enormous importance in Bavaria, which has few raw materials. The pit in Penzberg was revived under the von Eichthal banking family. In addition, there was a connection to the railway network. In 1869 the Penzberg company was merged with the competing coal union in Miesbach. In 1870, the company was converted into the “Upper Bavarian Coal Mining Company”. From then on, coal was mined in Penzberg for almost 100 years until the miners drove in for their last shift in 1966 in the wake of the German mining crisis.

Open detailed view

So far, Hof was considered the location of the oldest Bavarian securities. At the end of 1799, eleven men founded the “Bürger-Resource-Gesellschaft”, which still exists today. A little later, a separate club building was erected, which was financed in 1804 by issuing 300 shares. In 1845 the property was sold to the city because of the planning of a railway line. The compensation of 30,000 guilders was used to build a new building, which is still a fixture in Hof’s social life.

Probably the earliest public limited company in Bavaria was founded in Neustadt an der Aisch. When the garrison town was to be expanded in the 19th century, there was a lack of money everywhere. In order to keep the garrison and the purchasing power of the soldiers in Neustadt, a stable building company supported by citizens was formed in 1834. She was instrumental in funding the construction of new stables for the military service horses. The 72 founding shareholders were strictly forbidden to transfer their shares to outside interested parties – the capital and the associated decision-making authority should definitely remain concentrated in Neustadt. This and much more about historical shares can be found in a catalog published in 2019 by the Bavarian Economic Archive (“Bavarian values. Economic history reflected in historical shares and bonds”).