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47-678: From 1914 to 1923, Danzig used the German Papiermark and issued several local 'emergency notes'. Inflation during 1922–23 averaged roughly 2,440% per month. In July 1923 it was announced that a new and independent currency (the gulden) was being established with the approval of the League of Nations finance committee to replace the German mark. The gulden was introduced at a value of 25 gulden = 1 pound sterling , or 9.6d sterling per gulden. Danzig, separated from Germany after World War I,

94-535: A close in 1919. Although camp money used by prisoners of war was different from Notgeld , collectors inevitably lumped this material into the hobby. The period covered the entire war, 1914–1918. This field of collecting may include World War II issues, though this covers only notes circulated in concentration camps , as the German Luftwaffe in charge of prisoners of war prepared a general issue of notes for all camps under their direction. Though

141-503: A few dozen inhabitants. In a bid to increase economic activity, several depressed municipalities in the Alps regions of Austria experimented with demurrage features in their Notgeld during the period 1932–1934. As the notes lost value ( Schwund ) over time, the idea was to convince holders to spend them quickly, thereby spurring economic activity. Notes had dated spaces for demurrage coupons to be affixed to them, and each one lessened

188-577: A much smaller metal value. All silver coins were collected by the government, which replaced them with the copper coins. They were called nödmynt ('emergency coins'). This was done to finance the Great Northern War . The government promised to exchange them into the correct value at a future time, a kind of bond made in metal. Only a small part of this value was ever paid. Throughout the German occupation of Belgium during World War I there

235-483: A newspaper or at the place of issuance. Notgeld was mainly issued in the form of (paper) banknotes . Sometimes other forms were also used: coins, leather , silk , linen , wood , postage stamps , aluminium foil , coal , and porcelain ; there are also reports of elemental sulfur being used, as well as all sorts of re-used paper and carton material (e.g. playing cards ). These pieces made from playing cards are extremely rare and are known as Spielkarten ,

282-511: A part of a series). Quite often, the validity period of the note had already expired when the Notgeld was issued. As such, they are usually found in uncirculated condition, and are most favored by collectors all over the world. In 1922, due to uncontrolled printing of money, inflation started to get out of control in Germany, culminating in hyperinflation . Throughout the year, the value of

329-514: A series of catalogs in the years afterward. Although incomplete in many cases, his work formed the foundations of the hobby. Notgeld was released even before Germany entered World War I . On 31 July 1914 three notes were issued by the Bürgerliches Brauhaus GmbH of Bremen (a brewery). This was due to hoarding of coins by the population in the days before war was declared. The first period of Notgeld continued until

376-499: A shortage of exchangeable tender in one region or another during the war and hyperinflation periods. Some of the most memorable of these to be issued during this period came from Westphalia and featured the highest face value denominations on a coin ever, eventually reaching 1-billion-ℳ︁. In 1914, the State Loan Office began issuing paper money known as Darlehnskassenschein (loan fund notes). These circulated alongside

423-497: A temporary measure. By 1850, the state finances were in such an order as to render them unnecessary, though certain parts of Hungary still experienced shortages as late as 1860, requiring Notgeld -type issues. As in Germany, municipalities in Austria-Hungary issued Notgeld at the beginning of World War I. In most cases, small change scarcity was severest in the industrial Czech towns of Bohemia and Moravia . From

470-424: Is 1,000,000,000, or one thousand million, while Billion is 1,000,000,000,000, or one million million. Notgeld Notgeld ( German for 'emergency money ' or 'necessity money') is money issued by an institution in a time of economic or political crisis. The issuing institution is usually one without official sanction from the central government. This usually occurs when not enough state-produced money

517-530: Is available from the central bank . In particular, notgeld generally refers to money produced in Germany and Austria during World War I and the Interwar period . Issuing institutions could be a town's savings banks , municipalities and private or state-owned firms. Nearly all issues contained an expiry date, after which time they were invalid. Issues without dates ordinarily had an expiry announced in

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564-549: The National Bank of Belgium 's museum digitized its collection of Belgian Notgeld , which is available online. Between 1914 and 1927, large amounts of monnaie de nécessité were issued in France and its North African colonies during the economic crisis caused by World War I. Among the issuing authorities were companies and local chambers of commerce . The concept of Notgeld as temporary payment certificates

611-503: The Reichsbank fixed the value of the new Rentenmark in gold. One U.S. dollar was now equivalent to 4.2 Rentenmark (or 4.2 trillion old Papiermark , which were permitted to be exchanged beginning 30 August 1924). Until that date, a few municipalities issued Notgeld with denominations of 4.2 Mark or multiples or fractions of that. After that date, Goldmarkscheine of regular denominations were briefly issued, until

658-462: The Reichsbank forbade any further interference in the economy by local authorities. During the Interwar period , local municipalities and civic groups capitalized on the public memories of Notgeld by issuing certificates aimed at collectors, to raise funds for various building projects. These "Building Blocks" ( Bausteine ) tended to be of relatively high face value and issued in very limited numbers. The Reichsbank kept strict control of

705-446: The 2 ₰ until 1916. Whilst iron 5 ₰ , both iron and zinc 10 ₰, and aluminium 50 ₰ coins were issued until 1922. Aluminium 3ℳ︁ were issued in 1922 and 1923, and aluminium 200ℳ︁ and 500ℳ︁ were issued in 1923. The quality of many of these coins varied from decent to poor. During this period, many provinces and cities also had their own corresponding coin and note issues, referred to as Notgeld currency. This came about often due to

752-583: The Currency Reform of June 1948 created the Deutsche Mark and prohibited issuance of Notgeld . Apart from commemorative pieces issued sporadically, the era of Notgeld in Germany came to a close. Austrian municipalities experienced coin shortages during the revolution of 1848, especially in the Czech towns, and therefore many municipalities and industrial concerns issued Notgeld as

799-819: The Danzig Central Finance Department and dated 22 October 1923 with a second issue dated 1 November 1923. Denominations for both series included 1, 2, 5, 10, 25, and 50-pfennige notes, as well as 1, 2, and 5 gulden. In addition, the first issue contained 10 and 25-gulden notes, and the second issue contained 50 and 100-gulden notes. The Bank of Danzig was capitalized with £ 300,000 on 5 February 1924 and officially opened on 17 March 1924. The Bank of Danzig issued four series of gulden (1924, 1928–30, 1931–32, and 1937–38) with an initial issue date of 10 February 1924. Papiermark The Papiermark ( German: [paˈpiːɐ̯ˌmaʁk] ; lit. 'paper mark', officially just Mark , sign : ℳ︁ )

846-429: The German word for 'playing cards'. Notgeld was a mutually-accepted means of payment in a particular region or locality, but notes could travel widely. Some cases of Notgeld could better be defined as scrip , which were essentially coupons redeemable only at specific businesses. However, the immense volume of issues produced by innumerable municipalities, firms, businesses, and individuals across Germany blurred

893-619: The Norddeutsche Credit-Anstalt) were in operation. The Papiermark was issued by Danzig from 1914 to 1923. Five series were issued during World War I by the City Council (1914, 1916, 1918 first and second issue, and 1919). Denominations ranged from 10₰ to 20ℳ︁. The Free City of Danzig municipal senate issued an additional four post-World War I series of notes (1922, 1923 First issue, 1923 Provisional issue, and 1923 Inflation issue). The 1922 issue (31 October 1922)

940-576: The Papiermark was replaced by the Rentenmark at RM4.2 Rentenmark = US$ 1, or 1 trillion-ℳ︁ = RM1 (exchangeable through July 1925). During the hyperinflation, ever higher denominations of banknotes were issued by the Reichsbank and other institutions (notably the Reichsbahn railway company). The Papiermark was produced and circulated in enormously large quantities. Before the war,

987-610: The announcement of the creation of the Rentenmark , although the Rentenmark did not come into circulation until 1924. When it did, it replaced the Papiermark at the rate of 1- trillion (10 )-ℳ︁ to RM 1. On 30 August 1924 the Rentenmark was replaced by the Reichsmark . In addition to the issues of the government, emergency issues of both tokens and paper money, known as Kriegsgeld (war money) and Notgeld (emergency money), were produced by local authorities. The Papiermark

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1034-458: The coins could be exchanged for real silver coins. They were also stamped with the month of issue so that soldiers could claim interest on their wages. As James lost the war, that replacement never took place, but the coins were allowed to circulate at much reduced values before the copper coinage was resumed. In Sweden, between 1715 and 1719, 42 million coins with the nominal value 1 daler silver were manufactured, but made in copper, with

1081-769: The cost of a gold mark (or conversely the devaluation of the paper mark) rose from 15ℳ︁ to 1,282ℳ︁. In 1923 the value of the paper mark had its worst decline. By July, the cost of a gold mark had risen to 101,112ℳ︁, and in September was already at 13-million-ℳ︁. On 30 Nov 1923 it cost 1-trillion-ℳ︁ to buy a single gold mark. In October 1923, Germany experienced a 29,500% hyperinflation (roughly 21% interest per day). Historically, this one-month inflation rate has only been exceeded three times: Yugoslavia , 313,000,000% (64.6% per day, January 1994); Zimbabwe , 79.6 billion% (98% per day, November 2008); and Hungary , 41.9 quadrillion % (207% per day, July 1946). On 15 November 1923

1128-456: The definition. Collectors tend to categorize by region or era rather than issuing authority (see below). Notgeld is different from occupation money (e.g. Japanese invasion money ) that is issued by an occupying army during a war. Dr Arnold Keller, historian and orientalist , classified German Notgeld into different periods. Keller edited a magazine called Das Notgeld during the "collector phase" of Notgeld issuance. He compiled

1175-485: The economy during World War II, and forbade local authorities from independently meeting money shortages. After Germany's defeat, the Allied Military Control issued currencies for each of their respective areas of control, but did not alleviate coin scarcity. The dire situation after the war forced municipalities to once again issue Notgeld to help the population meet small change needs. Finally,

1222-692: The end of 1914, but mostly ceased once the German Reichsbank made up for the shortage with issues of small denomination paper notes and coins of cheaper metal. As the war dragged on, acute monetary shortages could not be met by the German central bank, leading to a new period of Notgeld beginning in 1916. Additionally, the non-precious metals used to mint lower value coins were needed to produce war supplies. Dr Keller arranged this period into two catalogs: Kleingeldscheine for issues of less than 1 Mark face value and Grossgeldscheine for values 1 Mark and higher. This period of issue came to

1269-584: The end of the hyperinflation, these notes were worth approximately £stg5.2 or US$ 23.81. The Danziger Privat Actien-Bank (opened 1856) was the first bank established in Danzig. They issued two series of notes denominated in thalers (1857 and 1862–73) prior to issuing the mark (1875, 1882, 1887). These mark issues are extremely rare. The Ostbank fur Handel and Gewerbe opened 16 March 1857, and by 1911 two additional banks (the Imperial Bank of Germany and

1316-883: The end of the war into 1919, German-speaking towns of the new Czechoslovakia issued Grossgeldscheine notes until the authorities forbade them to do so. As with Germany, collectors tended to lump Austro-Hungarian prison camp money in with Notgeld . Most issues date from 1916–1917, with the majority of camps situated in Austria proper, Hungary, and Czech territories. In 1920, hundreds of small towns across Upper and Lower Austria , but also many towns in Salzburg , Tyrol , and Styria , issued sets of collectible Notgeld , usually in three denominations with expiry dates of three months from issuance. Nearly all were printed on thin paper, often in runs ( Auflage ) of different colors or shades. Some of these notes actually circulated, but

1363-514: The highest denomination was 1,000ℳ︁, equivalent to approximately £stg 48.9 or US$ 238.09. In early 1922, 10,000ℳ︁ notes were introduced, followed by 100,000ℳ︁ and 1-million-ℳ︁ notes in February 1923. July 1923 saw notes up to 50-million-ℳ︁, with 10-milliard (10 )-ℳ︁ notes introduced in September. The hyperinflation peaked in October 1923 and banknote denominations rose to 100- trillion (10 )-ℳ︁. At

1410-404: The import of gulden coins and notes into the territory of the former free city was prohibited. Bank assets were however converted at the market rate of 47 reichspfennig per gulden. With effect on 7 September 1939, coins of 1 and 2 pfennige became legal tender throughout Nazi Germany as 1 and 2 reichspfennige, and would remain in circulation until November 1940. On 30 September the reichsmark became

1457-466: The issues of the Reichsbank . Most were 1ℳ︁ and 2ℳ︁ notes but there were also 5ℳ︁, 20ℳ︁, 50ℳ︁ and 100ℳ︁ notes. Between 1914 and the end of 1923 the Papiermark's rate of exchange against the U.S. dollar plummeted from 4.2ℳ︁ = US$ 1 to 4.2-trillionℳ︁ = US$ 1. The price of one gold mark (358 mg of pure gold) in German paper currency at the end of 1918 was 2ℳ︁, but by the end of 1919 a gold mark cost 10ℳ︁. This inflation worsened between 1920 and 1922, and

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1504-472: The issuing bodies realized this demand , they began to issue notes in 1920, well after their economic necessity had ended. They may have been motivated by the success of Austrian collector Notgeld earlier in the year (see below). Notes were issued predominantly in 1921 and were usually extremely colorful. These depicted many subjects, such as local buildings, local scenery and folklore, as well as politics. Many were released in series of 6, 8, or more notes of

1551-434: The latter date's issue was only released as a few presentation pieces. As part of the 1923 series are 200 proof coins and, while available to collectors, are very expensive. The 1930 issue was essentially unobtainable until a large number appeared in the 1990s, apparently released from a Russian treasury where they had been stored since their capture at the end of World War II. The first Danzig gulden banknotes were issued by

1598-401: The mark deteriorated faster and faster, and new money was issued in higher and higher denominations. The Reichsbank could not cope with the logistics of providing all these new notes, and Notgeld was again issued—this time in denominations of hundreds and then thousands of Marks. By July 1923, the Reichsbank had totally lost control of the economy. Notgeld flooded the economy; it

1645-401: The production of Notgeld was initially amateurish, with many set by typewriter or even handwritten, collectors soon appeared on the scene to take hold of the expired 1914 stock. With the next wave of issues in the latter half of the war, Notgeld production was handled by professional printers. These issues incorporated pleasing designs, and a new reason for hoarding came into being. As

1692-510: The same denomination, and tell a short story, with often whimsical illustrations. Often, they were sold to collectors in special envelope packets printed with a description of the series. Keller published information on releases in his magazine Das Notgeld . Often, he used his publication to criticize issuers for charging collectors more money for the series than their face value. These collector-only sets, which were never intended to circulate, were known as Serienscheine (pieces issued as

1739-610: The sole currency on the territory of the former free city. Notes and coins of 5 and 10 gulden were withdrawn that day and could be exchanged for reichsmarks until 15 October. Coins of 5 and 10 pfennig and 1 ⁄ 2 and 1 gulden remained in circulation until 25 June 1940 and were redeemed until 25 July. The first series of coins was issued in 1923, followed by a second in 1932. Coins were issued in denominations of 1, 2, 5 and 10 pfennige and 1 ⁄ 2 , 1, 2, 5, 10 and 25 gulden. The 25-gulden coins were minted in gold . Produced in very small numbers in 1923 (1,000) and 1930 (4,000),

1786-525: The total value as they were added. The effort was unsuccessful because the scale of the experiment was too small to show any benefit. The forces of James II minted coins in base metal (copper, brass, pewter) during the Williamite War in Ireland , which were known as gun money , because some of the metal was sourced from melted-down cannon . It was intended that, in the event of James' victory,

1833-654: The vast majority entered private collections, and the scheme's success in raising funds for destitute town budgets convinced German towns to do the same thing (see above). After the initial run of regular series, there were numerous releases of "special issues" ( Sonderscheine ) featuring different designs and denominations, fanciful overprints, or the same design as the general issues but in expensive metallic inks on different paper types. Many of these special issues were printed in very small quantities in order to charge premiums to collectors. Groups of rural villages issued Sonderscheine , even though some had populations of only

1880-433: Was a shortage of official coins and banknotes in circulation. As a result, around 600 communes , local governments and companies issued their own unofficial "necessity money" ( French : monnaie de nécessité , Dutch : noodgeld ) to enable the continued functioning of the local economies. These usually took the form of locally produced banknotes, but a few types of coins were also issued in towns and cities. In 2013,

1927-525: Was also used in the Free City of Danzig until it was replaced by the Danzig Gulden in late 1923. Several coins and emergency issues in Papiermark were issued by the free city. During the war, cheaper metals were introduced for coins, including aluminium , zinc and iron , although silver 1 ⁄ 2 ℳ︁ pieces continued in production until 1919. Aluminium 1 ₰ were produced until 1918 and

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1974-425: Was annexed by Nazi Germany on 1 September 1939, the day the invasion of Poland had begun On the same day reichsmark coins and notes were declared legal tender alongside the Danzig gulden, with 1 gulden being equal to 70 reichspfennig (0.70 reichsmark). This was a favourable exchange rate for inhabitants of Danzig, since the actual exchange rate was around 47 reichspfennig per gulden. To prevent abuse on 7 September

2021-493: Was being denominated in the form of commodities or other currencies: wheat, rye, oats, sugar, coal, wood, quantities of natural gas, and kilowatt-hours of electricity. These pieces were known as Wertbeständige , or notes of "fixed value". There were also Notgeld coins that were made of compressed coal dust. These became quite rare, as most of them were eventually traded with the coal merchant issuer for actual coal and some may have even been burned as fuel. In January 1924,

2068-402: Was denominated in 100ℳ︁, 500ℳ︁, and 1,000ℳ︁ notes. The denominations for the 1923 issue were 1,000ℳ︁ (15 March 1923), and 10,000ℳ︁ and 50,000ℳ︁ notes (20 March 1923). The 1923 provisional issue reused earlier notes with a large red stamp indicating the new (and higher) denominations of 1 million-ℳ︁ (8 August 1923) and 5 million-ℳ︁ (15 October 1923) mark. The last series of Danzig mark

2115-513: Was issued by any city, town, business, or club that had access to a printing press, in order to meet the ever-increasing rise in prices. Even Serienscheine were being hand-stamped with large denominations to meet the demand. By September, Notgeld was denominated in the tens of millions; by October, in billions; by November, trillions. On November 12, the Reichsbank declared the Mark to be valueless, and ceased all issuance. By now, Notgeld

2162-564: Was the German currency from 4 August 1914 when the link between the Goldmark and gold was abandoned, due to the outbreak of World War I . In particular, the Papiermark was the currency issued during the hyperinflation in Germany of 1922 and 1923. From 1914, the value of the mark fell. The rate of inflation rose following the end of World War I and reached its highest point in October 1923. The currency stabilized in November 1923 after

2209-457: Was the 1923 inflation issue of 1 million-ℳ︁ (8 August 1923), 10 million-ℳ︁ (31 August 1923), 100 million-ℳ︁ (22 September 1923), 500 million-ℳ︁ (26 September 1923), 5 billion-ℳ︁ and 10 billion-ℳ︁ notes (11 October 1923). The Danzig mark was replaced by the Danzig gulden , first issued by the Danzig Central Finance Department on 22 October 1923. In German, Milliarde

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