German Papiermark

Infobox Currency
currency_name_in_local = Mark de icon
image_1 = 1923-9-1-500mil.jpg
image_title_1 = A 500 Million mark banknote from Germany of 1923 ( [http://www.germannotes.com http://www.germannotes.com] )
image_2 =
image_title_2 =
iso_code =
using_countries = Germany
subunit_ratio_1 = 1/100
subunit_name_1 = Pfennig
symbol = M
symbol_subunit_1 = pf.
plural = Mark
plural_subunit_1 = pfennig
used_coins = 1, 2, 5, 10, 50 Pfennig ½, 1, 3, 200, 500 Mark
used_banknotes = 1, 2, 5, 10, 20, 50, 100, 500 Mark 1, 5, 10, 20, 50, 100, 200, 500 thousand Mark 1, 2, 5, 10, 20, 50, 100, 500 million Mark 1, 5, 10, 20, 50, 100, 200, 500 milliard (10⁹) Mark 1, 2, 5, 10, 20, 50, 100 billion (10¹²) Mark
issuing_authority = Reichsbank
issuing_authority_website =
obsolete_notice = Y

The name Papiermark ( _en. 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, which was a result of the Germans' decision to pay their 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 long scale (10¹², one trillion in short scale) 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 and 50 Mark notes.

Post War issues

The victor nations in WWI decided to assess Germany for their costs of conducting the war against Germany. With no means of paying in gold or currency backed by reserves, Germany ran the presses until the debt was paid, 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.

Note on numeration

In German, "Milliarde" is 1,000,000,000, while "Billion" is 1,000,000,000,000. See Long and short scales.

ee also

*1922 in Germany
*1923 in Germany

References

*numis cite SCWC|date=1991
*numis cite SCWPM|date=1994
*GermanNotes.com (2005). "German Paper Money 1871-1999". [http://www.zapzero.com/gn/shop/product_info.php?cPath=28&products_id=82 eBook from germannotes.com]

External links

Standard numismatics external links
world_coin_gallery_1_url = Germany
world_coin_gallery_1_name = Germany
banknote_world_1_url = germany1
banknote_world_1_name = Germany - 1865 to 1919
banknote_world_2_url = germany2
banknote_world_2_name = Germany - 1920 to 1923
dollarization_1_url =
dollarization_1_name =
gfd_1_url = Germany
gfd_1_name = Germany
gfd_data_1_url = 4009
gfd_data_1_name = Germany Deutschemark
show_gfd_excel = Y
* [http://www.schoolshistory.org.uk/ASLevel_History/week6_economicrecovery.htm Exchange rates]