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26-703: 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 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

52-445: 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 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

78-585: A result, inflation spiked and the Papiermark went into freefall on the currency market. Foreign currency reserves at the Reichsbank dwindled. As hyperinflation took hold, the cabinet of Cuno resigned in August 1923 and was replaced by the cabinet of Gustav Stresemann . After Stresemann reshuffled his cabinet in early October, Hans Luther became Minister of Finance. Working with Hjalmar Schacht at

104-497: 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

130-775: The hyperinflation of 1922 and 1923 in Weimar Germany , after the previously used Papiermark had become almost worthless. It was subdivided into 100 Rentenpfennig and was replaced in 1924 by the Reichsmark . After the Occupation of the Ruhr in early 1923 by French and Belgian troops, referred to as the Ruhrkampf , the German government of Wilhelm Cuno reacted by announcing a policy of passive resistance. This caused

156-557: The 5 Rpf, 10 Rpf, and 50 Rpf coins in aluminium-bronze. These coins had the same design features and motifs as coins of the Reichsmark from the Weimar and early Third Reich periods. The first issue of banknotes was dated 1 November 1923 and was in denominations of RM 1, RM 2, RM 5, RM 10, RM 50, RM 100, RM 500 and RM 1000. Later issues of notes were RM 10 and RM 50 (1925), RM 5 (1926), RM 50 (1934) and RM 1 and RM 2 (1937). Danzig gulden The gulden , divided into 100 Pfennig ,

182-600: 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) 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

208-545: 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, 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

234-480: 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, the highest denomination

260-913: The Reichsbank and the fiscal policy of Finance Minister Hans Luther brought the period of hyperinflation in Germany to an end. The Reichsmark became the new legal tender on 30 August 1924, equal in value to the Rentenmark. This marked a return to a gold-backed currency in connection with the implementation of the Dawes Plan . The Rentenbank continued to exist after 1924 and the notes and coins continued to circulate. The last Rentenmark notes were valid until 1948. Coins were issued dated 1923, 1924 and 1925 in denominations of 1 Rpf, 2 Rpf, 5 Rpf, 10 Rpf and 50 Rpf. Only small numbers of Rentenpfennig coins were produced in 1925. A few 1 Rpf coins were struck dated 1929. The 1 Rpf and 2 Rpf were minted in bronze , with

286-409: The Reichsbank, Luther quickly came up with a stabilization plan for the currency which combined elements of a monetary reform by economist Karl Helfferich with ideas of Luther's predecessor in office Rudolf Hilferding . With the help of the emergency law ( Ermächtigungsgesetz ) of 13 October 1923 which gave the government the power to issue decrees on financial and economic matters, the new Rentenbank

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312-505: The Rentenmark backed the currency by means of twice yearly payments on property, due in April and October, payable for five years. Although the Rentenmark was not initially legal tender , it was accepted by the population and its value was relatively stable. The Act prohibited the recently privatised Reichsbank from continuing to discount bills and the inflation of the Papiermark immediately stopped. The monetary policy spearheaded by Schacht at

338-550: 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 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

364-763: 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

390-680: 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 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

416-463: 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

442-436: 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

468-411: The regional economy of the Ruhr, the industrial heartland of Germany, to almost stop. The occupation authorities reacted to strikes and sabotage with arrests and deportations. Those displaced and left without income by the Ruhrkampf and their families fell back on public income support. Tax revenues plunged as economic activity slowed. The government covered its need for funds mainly by printing money. As

494-633: The reichsmark became 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),

520-517: Was mortgaged ( Rente is a technical term for mortgage in German) to the tune of 3.2 billion Goldmarks , based on the 1913 wealth charge called Wehrbeitrag which had helped fund the German war effort from 1914 to 1918. Notes worth RM 3.2 billion were issued. The Rentenmark was introduced at a rate of one Rentenmark to equal one trillion (10 ) old marks, with an exchange rate of one United States dollar to equal 4.2 Rentenmarks. The Act creating

546-569: 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 the end of the hyperinflation, these notes were worth approximately £stg5.2 or US$ 23.81. The Danziger Privat Actien-Bank (opened 1856)

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572-545: 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 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

598-463: Was established that same day, 15 October 1923. The newly created Rentenmark replaced the old Papiermark on 15 November. Because of the economic crisis in Germany after the First World War , there was no gold available to back the currency. Luther thus used Helfferich's idea of a currency backed by real goods. The new currency was backed by the land used for agriculture and business. This

624-540: Was replaced by the Danzig gulden , first issued by the Danzig Central Finance Department on 22 October 1923. In German, Milliarde is 1,000,000,000, or one thousand million, while Billion is 1,000,000,000,000, or one million million. German Rentenmark The Rentenmark ( German: [ˈʁɛntn̩ˌmaʁk] ; RM ) was a currency issued on 15 November 1923 to stop

650-523: Was the currency of the Free City of Danzig from 1923 to 1939. 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

676-624: 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 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

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