Papiermark

{{further|Hyperinflation in the Weimar Republic}}

From 1914, the value of the mark fell.{{Cite web |title=Measuring Worth - Measures of worth, inflation rates, saving calculator, relative value, worth of a dollar, worth of a pound, purchasing power, gold prices, GDP, history of wages, average wage |url=https://www.measuringworth.com/datasets/exchangeglobal/ |access-date=2024-06-30 |website=www.measuringworth.com}} 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 (10¹²)-ℳ︁ to RM1. On 30 August 1924 the Rentenmark was replaced by the Reichsmark.{{cite web|url=http://www.deutsche-biographie.de/sfz55235.html|title=Biografie Hans Luther|language=de|publisher=Bayerische Nationalbibliothek|access-date=15 August 2020}}

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.{{Cite web |title=Guide to Notgeld Collection 1914-1923 |url=https://www.lib.uchicago.edu/e/scrc/findingaids/view.php?eadid=ICU.SPCL.NOTGELD |access-date=2024-06-24 |website=www.lib.uchicago.edu}}

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 the free city.{{cite news |author= |date=20 July 1923 |title=Danzig to Establish New Currency System |newspaper=The New York Times |page=3 |via=ProQuest Historical Newspapers: The New York Times (1851–2010)}}

File:5milmkbk.jpg

During the war, cheaper metals were introduced for coins, including aluminium, zinc and iron, although silver {{frac|1|2}}ℳ︁ pieces continued in production until 1919. Aluminium 1₰ were produced until 1918 and the 2₰ until 1916.{{Cite web |title=GERMANY 1 PFENNIG, ALUMINUM (1916-1918) |url=https://germancoins.com/germany-1-pfennig-aluminum-1916-1918/ |access-date=2024-06-24 |website=CoinKing® - GermanCoins.com |language=en-US}} Whilst iron 5₰, both iron and zinc 10₰, and aluminium 50₰ coins were issued until 1922.{{Cite web |last=smithwicknumismati |date=2021-12-21 |title=Coins Of The Great War: 5 Pfennig (Imperial Germany, 1918)-Article |url=https://www.smithwicknumismatics.com/post/coins-of-the-great-war-5-pfennig-imperial-germany-1918-article |access-date=2024-06-24 |website=Smithwicknumismatics |language=en}}{{Cite web |title=Germany - Empire 10 Pfennig KM 20 Prices & Values {{!}} NGC |url=https://www.ngccoin.com/price-guide/world/germany-empire-10-pfennig-km-20-1916-1922-cuid-1128845-duid-1313363 |access-date=2024-06-24 |website=www.ngccoin.com}}{{Cite web |title=Germany - Empire 10 Pfennig KM 26 Prices & Values {{!}} NGC |url=https://www.ngccoin.com/price-guide/world/germany-empire-10-pfennig-km-26-1917-1922-cuid-1132319-duid-1312791 |access-date=2024-06-24 |website=www.ngccoin.com}} Aluminium 3ℳ︁ were issued in 1922 and 1923,{{Cite web |title=3 Mark 1922-1923 coin value Germany Weimar Constitution - detailed description with image and worth |url=https://worldcoinsinfo.com/world_coins/germany-3-mark-1922-1923-coin.html |access-date=2024-06-24 |website=worldcoinsinfo.com}} and aluminium 200ℳ︁ and 500ℳ︁ were issued in 1923.{{Cite web |title=200 Mark 1923 German Weimar coin value - detailed description with image and worth |url=https://worldcoinsinfo.com/world_coins/germany-200-mark-1923-coin.html |access-date=2024-06-24 |website=worldcoinsinfo.com}}{{Cite web |title=1923 German Coins - Coin Values {{!}} Coinstrail |url=https://coinstrail.com/catalog/germany/year/1923 |access-date=2024-06-24 |website=coinstrail.com}} 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 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.[https://en.numista.com/catalogue/pieces20338.html 1 Billion Mark - Westfalen] at Numista.com. Accessed on 13 August 2020.

In 1914, the State Loan Office began issuing paper money known as Darlehnskassenschein (loan fund notes). These circulated alongside the issues of the Reichsbank. Most were 1ℳ︁ and 2ℳ︁ notes but there were also 5ℳ︁, 20ℳ︁, 50ℳ︁ and 100ℳ︁ notes.{{Cite web |title=Banknotes Catalog - List of banknotes for The state loan office note (Darlehnskassenschein) 1914-1924, Germany |url=https://www.allnumis.com/banknotes-catalog/germany/the-state-loan-office-note-darlehnskassenschein-1914-1922 |access-date=2024-06-24 |website=www.allnumis.com |language=en}}

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.{{sfn|Barisheff|2013|p=32}} The price of one gold mark ({{#expr:(1000000/2790) round 0}} 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.{{sfn|Fischer|2010|p=85}} This inflation worsened between 1920 and 1922, and the cost of a gold mark (or conversely the devaluation of the paper mark) rose from 15ℳ︁ to 1,282ℳ︁.{{sfn|Fischer|2010|p=85}} 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.{{sfn|Fischer|2010|p=85}} On 30 Nov 1923 it cost 1-trillion-ℳ︁ to buy a single gold mark.{{sfn|Fischer|2010|p=85}}

In October 1923, Germany experienced a 29,500% hyperinflation (roughly 21% interest per day).{{cite web |date=14 February 2011 |title=World Hyperinflations |url=http://www.karlwhelan.com/IMB/Hyperinflations.pdf |url-status=live |archive-url=https://web.archive.org/web/20130905085358/http://www.karlwhelan.com/IMB/Hyperinflations.pdf |archive-date=5 September 2013 |access-date=13 July 2012 |publisher=CNBC}} 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).{{cite web |date=15 August 2012 |title=World Hyperinflations {{pipe}} Steve H. Hanke and Nicholas Krus {{pipe}} Cato Institute: Working Paper |url=http://www.cato.org/publications/working-paper/world-hyperinflations |url-status=live |archive-url=https://web.archive.org/web/20121017012645/http://www.cato.org/publications/working-paper/world-hyperinflations |archive-date=17 October 2012 |access-date=15 October 2012 |publisher=Cato.org}}

On 15 November 1923 the Papiermark was replaced by the Rentenmark at RM4.2 Rentenmark = US$1,{{sfn|Barisheff|2013|p=32}} or 1 trillion-ℳ︁ = RM1 (exchangeable through July 1925).{{sfn|Widdig|2001|p=48}}

During the hyperinflation, ever higher denominations of banknotes were issued by the Reichsbank{{sfn|Cuhaj|2010|pp=555–64}} and other institutions (notably the Reichsbahn railway company).{{sfn|Cuhaj|2009|pp=629–36}} The Papiermark was produced and circulated in enormously large quantities. Before the war, the highest denomination was 1,000ℳ︁, equivalent to approximately £stg48.9 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 (10¹⁰)-ℳ︁ notes introduced in September. The hyperinflation peaked in October 1923 and banknote denominations rose to 100-trillion (10¹⁴)-ℳ︁. At the end of the hyperinflation, these notes were worth approximately £stg5.2 or US$23.81.{{Cite web |title=Hyperinflation in the Weimar Republic {{!}} Description & Facts {{!}} Britannica |url=https://www.britannica.com/event/hyperinflation-in-the-Weimar-Republic |access-date=2024-07-03 |website=www.britannica.com |language=en}}{{Cite web |title=The German Hyperinflation of 1923 |url=https://www.amusingplanet.com/2017/12/the-german-hyperinflation-of-1923.html |access-date=2024-07-03 |website=www.amusingplanet.com |language=en}}{{Cite web |last=Magazine |first=Smithsonian |last2=Bisno |first2=Adam |title=How Hyperinflation Heralded the Fall of German Democracy |url=https://www.smithsonianmag.com/history/how-hyperinflation-heralded-the-fall-of-german-democracy-180982204/ |access-date=2024-07-03 |website=Smithsonian Magazine |language=en}}

The Danziger Privat Actien-Bank (opened 1856) was the first bank established in Danzig.{{sfn|Kelly|1920|p=30}} They issued two series of notes denominated in thalers (1857 and 1862–73) prior to issuing the mark (1875, 1882, 1887).{{sfn|Cuhaj|2009|p=613}} These mark issues are extremely rare.{{sfn|Cuhaj|2009|p=613}} The [https://translate.google.com/translate?hl=en&sl=de&u=http://www.moneypedia.de/index.php/Bank:_Ostbank_f%25C3%25BCr_Handel_und_Gewerbe&prev=search 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.{{sfn|Rand McNally|1911|p=972}}

The Papiermark was issued by Danzig from 1914 to 1923.{{sfn|Cuhaj|2010|pp=427–30}} Five series were issued during World War I by the City Council (1914, 1916, 1918 first and second issue, and 1919).{{sfn|Cuhaj|2010|pp=427–28}} Denominations ranged from 10₰ to 20ℳ︁.{{sfn|Cuhaj|2010|pp=427–28}} 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).{{sfn|Cuhaj|2010|pp=428–30}} The 1922 issue (31 October 1922) was denominated in 100ℳ︁, 500ℳ︁, and 1,000ℳ︁ notes.{{sfn|Cuhaj|2010|pp=428}} The denominations for the 1923 issue were 1,000ℳ︁ (15 March 1923), and 10,000ℳ︁ and 50,000ℳ︁ notes (20 March 1923).{{sfn|Cuhaj|2010|pp=429}} 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.{{sfn|Cuhaj|2010|pp=429–30}} 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).{{sfn|Cuhaj|2010|pp=430}} The Danzig mark was replaced by the Danzig gulden, first issued by the Danzig Central Finance Department on 22 October 1923.{{sfn|Cuhaj|2010|pp=430}}

{{see also|Long and short scales}}

In German, Milliarde is 1,000,000,000, or one thousand million, while Billion is 1,000,000,000,000, or one million million.

{{Portal|Germany|Money|Numismatics}}

• 1922 in Germany
• 1923 in Germany
• Hyperinflation
• Hyperinflation in Zimbabwe
• Inflation hedge

{{Reflist|group="nb"}}

{{reflist|group=note}}

{{reflist}}

{{refbegin}}

• {{Cite book|url=https://books.google.com/books?id=Vo2g3bF9mfkC&pg=PT32|title=$10,000 Gold – Why Gold's Inevitable Rise is the Investor's Safe Haven|publisher=John Wiley & Sons Canada, Ltd.|isbn=978-1-118-44350-7|last1=Barisheff|first1=Nick|year=2013}}
• {{Cite book|url=https://books.google.com/books?id=22dKPgAACAAJ&q=standard+catalog+of+specialized+issues|title=Standard Catalog of World Paper Money Specialized Issues|edition=11|publisher=Krause|isbn=978-1-4402-0450-0|editor-last=Cuhaj|editor-first=George S.|year=2009}}
• {{Cite book|url=https://books.google.com/books?id=BuNA39dnuHsC|title=Standard Catalog of World Paper Money General Issues (1368-1960)|edition=13|publisher=Krause|isbn=978-1-4402-1293-2|editor-last=Cuhaj|editor-first=George S.|year=2010}}{{Dead link|date=November 2023 |bot=InternetArchiveBot |fix-attempted=yes }}
• {{Cite book|url= https://books.google.com/books?id=Me09Xuogp-sC|title= German Hyperinflation 1922/23: A Law and Economics Approach|publisher= Josef Eul Verlag GmbH|isbn= 978-3-89936-931-1|editor-last= Fischer|editor-first= Wolfgang C.|year= 2010}}
• GermanNotes.com (2005). German Paper Money 1871-1999. [https://archive.today/20060528203514/http://www.zapzero.com/gn/shop/product_info.php?cPath=28&products_id=82 eBook from germannotes.com]
• {{cite journal|last1= Kelly|first1= William J.|year= 1920|title= The Situation at Danzig|journal= Journal of the American-Polish Chamber of Commerce and Industry|volume= 1|issue= 6|publisher= American-Polish Chamber of Commerce and Industry|url= https://books.google.com/books?id=iGHnAAAAMAAJ&pg=PA30}}
• {{numis cite SCWC|date=1991}}
• {{numis cite SCWPM|date=1994}}
• {{cite journal|last1= Rand McNally|year= 1911|title= The Rand-McNally Banker's Director and List of Attorneys|journal= Rand McNally International Bankers Directory|volume= 70|issue= 1|publisher= Rand McNally & Company|url= https://books.google.com/books?id=hG07AQAAMAAJ}}
• {{Cite book|url=https://books.google.com/books?id=kvKAATycUzIC&pg=PA48|title=Culture and Inflation in Weimar Germany|publisher=University of California Press|isbn=0-520-22290-3|last1=Widdig|first1=Bernd|year=2001}}

{{refend}}

• [https://web.archive.org/web/20160107203002/http://www.schoolshistory.org.uk/ASLevel_History/week6_economicrecovery.htm Exchange rates]

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{{N-before|currency=Goldmark|reason=}}

{{N-currency|location=Germany|start=1914|end=1923}}

{{N-after|currency=Rentenmark|reason=inflation|ratio= 1 Rentenmark = 1,000,000,000 Papiermark, and 4.2 Rentenmark = US$1}}

{{End}}

{{Mark}}

Category:Currencies of Germany

Category:Economy of the Weimar Republic

Category:Modern obsolete currencies

Category:Economic history of World War I

Category:Currencies of Poland

Category:Free City of Danzig

Category:1923 disestablishments

Category:1920s in economic history

Category:1923 in Europe