iOWNme
7th June 2010, 01:11 PM
Good read, and interesting to see just what printing paper to solve economic problems will do to a country:
German Papiermark (http://en.wikipedia.org/wiki/Papiermark) - 1914
1920's German Inflation (http://en.wikipedia.org/wiki/1920s_German_inflation) - Weimmar Republic 1921
http://upload.wikimedia.org/wikipedia/en/9/96/1923-9-1-500mil.jpg
A 500 Million mark banknote from Germany of 1923
http://upload.wikimedia.org/wikipedia/en/thumb/8/8f/GermanyHyperChart.jpg/220px-GermanyHyperChart.jpg
Weimar Republic hyperinflation from one to one trillion paper Marks per gold Mark
http://upload.wikimedia.org/wikipedia/commons/thumb/3/39/Inflationmedal.jpg/220px-Inflationmedal.jpg
A medal commemorating Germany's 1923 hyperinflation. The engraving reads: "On 1st November 1923 1 pound of bread cost 3 billion, 1 pound of meat: 36 billion, 1 glass of beer: 4 billion."
http://upload.wikimedia.org/wikipedia/commons/thumb/f/ff/Bundesarchiv_Bild_102-00104%2C_Inflation%2C_Tapezieren_mit_Geldscheinen. jpg/220px-Bundesarchiv_Bild_102-00104%2C_Inflation%2C_Tapezieren_mit_Geldscheinen. jpg
Germany, 1923: banknotes had lost so much value that they were used as wallpaper
The name Papiermark (English: paper mark) is applied to the German currency from the point in 1914 when the link between the Mark and gold was abandoned, due to the outbreak of the First World War. In particular, the name is used for the banknotes issued during the hyperinflation in Germany of 1922 and especially 1923 (see Inflation in the Weimar Republic), which was a result of the German government's decision to pay its war debt by printing banknotes.
History
From 1914, the value of the Mark fell. The rate of inflation rose following the end of WWI and reached its highest point in October 1923. The currency was 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 billion Papiermark = 1 Rentenmark. Later in 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 .
Coins
During the war, cheaper metals were introduced for coins, including aluminium, zinc and iron, although silver ½ Mark pieces continued in production until 1919. Aluminium 1 Pfennig were produced until 1918 and the 2 Pfennig till 1916. Whilst iron 5 Pfennig, both iron and zinc 10 Pfennig and aluminium 50 Pfennig coins were issued until 1922. Aluminium 3 Mark were issued in 1922 and 1923, and aluminium 200 and 500 Mark were issued in 1923.
Banknotes
First World War issues
In 1914, the State Loan Office began issuing paper money known as "Darlehnskassenscheine" (loan fund notes). These circulated alongside the issues of the Reichsbank. Most were 1 and 2 Mark notes but there were also 5, 20, 50 and 100 Mark notes.
Post War issues
The victor nations in WWI decided to assess Germany for their costs of conducting the war against German. With no means of paying in gold or currency backed by reserves, Germany ran the presses, causing the value of the Mark to collapse. Many Germans literally carted wheelbarrows of cash to pay for groceries.
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 was 1000 Mark, equivalent to approximately 50 British pounds or 238 US dollars. In early 1922, 10,000 Mark notes were introduced, followed by 100,000 and 1 million Mark notes in February 1923. July 1923 saw notes up to 50 million Mark, with 10 milliard (1010) Mark notes introduced in September. The hyperinflation peaked in October 1923 and banknote denominations rose to 100 billion (1014) Mark. At the end of the hyperinflation, these notes were worth approximately 5 pounds or 24 dollars.
"Those who choose to ignore history are condemned to repeat it."
German Papiermark (http://en.wikipedia.org/wiki/Papiermark) - 1914
1920's German Inflation (http://en.wikipedia.org/wiki/1920s_German_inflation) - Weimmar Republic 1921
http://upload.wikimedia.org/wikipedia/en/9/96/1923-9-1-500mil.jpg
A 500 Million mark banknote from Germany of 1923
http://upload.wikimedia.org/wikipedia/en/thumb/8/8f/GermanyHyperChart.jpg/220px-GermanyHyperChart.jpg
Weimar Republic hyperinflation from one to one trillion paper Marks per gold Mark
http://upload.wikimedia.org/wikipedia/commons/thumb/3/39/Inflationmedal.jpg/220px-Inflationmedal.jpg
A medal commemorating Germany's 1923 hyperinflation. The engraving reads: "On 1st November 1923 1 pound of bread cost 3 billion, 1 pound of meat: 36 billion, 1 glass of beer: 4 billion."
http://upload.wikimedia.org/wikipedia/commons/thumb/f/ff/Bundesarchiv_Bild_102-00104%2C_Inflation%2C_Tapezieren_mit_Geldscheinen. jpg/220px-Bundesarchiv_Bild_102-00104%2C_Inflation%2C_Tapezieren_mit_Geldscheinen. jpg
Germany, 1923: banknotes had lost so much value that they were used as wallpaper
The name Papiermark (English: paper mark) is applied to the German currency from the point in 1914 when the link between the Mark and gold was abandoned, due to the outbreak of the First World War. In particular, the name is used for the banknotes issued during the hyperinflation in Germany of 1922 and especially 1923 (see Inflation in the Weimar Republic), which was a result of the German government's decision to pay its war debt by printing banknotes.
History
From 1914, the value of the Mark fell. The rate of inflation rose following the end of WWI and reached its highest point in October 1923. The currency was 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 billion Papiermark = 1 Rentenmark. Later in 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 .
Coins
During the war, cheaper metals were introduced for coins, including aluminium, zinc and iron, although silver ½ Mark pieces continued in production until 1919. Aluminium 1 Pfennig were produced until 1918 and the 2 Pfennig till 1916. Whilst iron 5 Pfennig, both iron and zinc 10 Pfennig and aluminium 50 Pfennig coins were issued until 1922. Aluminium 3 Mark were issued in 1922 and 1923, and aluminium 200 and 500 Mark were issued in 1923.
Banknotes
First World War issues
In 1914, the State Loan Office began issuing paper money known as "Darlehnskassenscheine" (loan fund notes). These circulated alongside the issues of the Reichsbank. Most were 1 and 2 Mark notes but there were also 5, 20, 50 and 100 Mark notes.
Post War issues
The victor nations in WWI decided to assess Germany for their costs of conducting the war against German. With no means of paying in gold or currency backed by reserves, Germany ran the presses, causing the value of the Mark to collapse. Many Germans literally carted wheelbarrows of cash to pay for groceries.
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 was 1000 Mark, equivalent to approximately 50 British pounds or 238 US dollars. In early 1922, 10,000 Mark notes were introduced, followed by 100,000 and 1 million Mark notes in February 1923. July 1923 saw notes up to 50 million Mark, with 10 milliard (1010) Mark notes introduced in September. The hyperinflation peaked in October 1923 and banknote denominations rose to 100 billion (1014) Mark. At the end of the hyperinflation, these notes were worth approximately 5 pounds or 24 dollars.
"Those who choose to ignore history are condemned to repeat it."