German Papiermark

The Papiermark (pronunciation ; English: "paper mark", officially just Mark, sign: ℳ) was the German currency from 4 August 1914[1] when the link between the Goldmark and gold was abandoned, due to the outbreak of World War I. In particular, Papiermarks were the banknotes issued during the hyperinflation in Germany of 1922 and especially 1923.

German Papiermark
Mark (in German)
100 trillion Mark
Denominations
Subunit
 1/100Pfennig
PluralMark
 PfennigPfennig
Symbolℳ
 Pfennig₰
Banknotes1, 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 billion Mark
1, 2, 5, 10, 20, 50, 100 trillion Mark
Coins1, 2, 5, 10, 50 Pfennig(1/2 Mark)
1, 3, 200, 500 Mark
Demographics
User(s) German Empire
Weimar Republic
Free City of Danzig
Issuance
Central bankReichsbank
Valuation
Pegged withUnited States dollar = 4.2 trillion Mark = 4.20 Rentenmark
This infobox shows the latest status before this currency was rendered obsolete.

History
Further information: Hyperinflation in the Weimar Republic

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 (1012) Papiermark to 1 Rentenmark. On 30 August 1924 the Rentenmark was replaced by the Reichsmark.[2]

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 replaced by the Danzig Gulden in late 1923. Several coins and emergency issues in Papiermark were issued by the free city.

Coins
5 million Mark coin would have been worth $714.29 in January 1923, about 1 thousandth of one cent by October 1923.

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 until 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. 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 Westfalen and featured the highest face value denominations on a coin ever, eventually reaching 1,000,000,000,000 Mark.[3]

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 World War I 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, causing the value of the Mark to collapse. Between 1914 and the end of 1923 the Papiermark's rate of exchange against the U.S. dollar plummeted from 4.2 mark/dollar to 4.2 trillion mark/dollar.[4] The price of one gold mark (0.35842g gold weight) in German paper currency at the end of 1918 was two paper mark, but by the end of 1919 a gold mark cost 10 paper mark.[5] This inflation worsened between 1920 and 1922, and the cost of a gold mark (or conversely the devaluation of the paper mark) rose from 15 to 1,282 paper mark.[5] In 1923 the value of the paper mark had its worst decline. By July, the cost of a gold mark had risen to 101,112 paper mark, and in September was already at 13 million.[5] On 30 Nov 1923 it cost 1 trillion paper mark to buy a single gold mark.[5]

In October 1923, Germany experienced a 29,500% hyperinflation (roughly 21% interest per day).[6] 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).[6]

On 15 November 1923 the Papiermark was replaced by the rentenmark at 4.2 rentenmark/dollar,[4] or 1 trillion Papiermark/rentenmark (exchangeable through July 1925).[7]

During the hyperinflation, ever higher denominations of banknotes were issued by the Reichsbank[8] and other institutions (notably the Reichsbahn railway company).[9] 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 trillion (1014)-Mark. At the end of the hyperinflation, these notes were worth approximately £5 sterling or US$24.

Denomination Translations

There is a confusion that frequently arises when translating German to English with regard to denominations, as the exact same words, in some cases, exist in both languages but represent different denominations, as is the case with the word "Billion". So to alleviate that confusion, a simple chart of translations.

GERMANENGLISH
Million / MillionenMillion / Million
Millard(e) / MilliardenBillion / Billions
Billion / BillionenTrillion / Trillions

Weimar Republic (1920–24)
Republic Treasury Notes, Weimar Republic Reichsbanknote
Year Issue Value[nb 1] Date[nb 2] Image Comments
1920
 First[10] 10 6 Feb 1920
126 mm × 84 mm (5.0 in × 3.3 in)
50 23 Jul 1920
150 mm × 100 mm (5.9 in × 3.9 in)
100 1 Nov 1920
Portraits based on the Bamberg riders at Bamberg Cathedral
162 mm × 108 mm (6.4 in × 4.3 in)
1922
 First[11] 10,000 19 Jan 1922
Portrait of a young Man by Albrecht Dürer
210 mm × 124 mm (8.3 in × 4.9 in)
Second[12] 500 27 Mar 1922
Jakob Meyer of the Meyer zum Pfeil family
175 mm × 112 mm (6.9 in × 4.4 in)
500 7 Jul 1922
173 mm × 90 mm (6.8 in × 3.5 in)
Third[12] 100 4 Aug 1922
162 mm × 90 mm (6.4 in × 3.5 in)
1,000 15 Sep 1922
160 mm × 85 mm (6.3 in × 3.3 in)
5,000 16 Sep 1922
Section of Portrait of a Man with a Coin by Hans Memling
130 mm × 90 mm (5.1 in × 3.5 in)
5,000 19 Nov 1922
Portrait of Hans Urmiller based on Portrait of Hans Urmiller and his Son by Barthel Beham
198 mm × 107 mm (7.8 in × 4.2 in)
50,000 19 Nov 1922
Bürgermeister Arnold von Brauweiler based on Burgomaster Arnold von Brauweiler by Barthel Bruyn the Elder
190 mm × 110 mm (7.5 in × 4.3 in)
Fourth[12] 5,000 2 Dec 1922
Merchant Imhof based on Portrait of a Man by Albrecht Dürer
130 mm × 90 mm (5.1 in × 3.5 in)
Fifth[13] 1,000 15 Dec 1922
Portrait of Jörg Herz based on Jörg Herz Nürnberger Münzmeister by Georg Pencz
140 mm × 90 mm (5.5 in × 3.5 in)
1923
 First[13] 100,000 1 Feb 1923
Merchant Georg Giese based on Portrait of Georg Giese by Hans Holbein the Younger
190 mm × 115 mm (7.5 in × 4.5 in)
Second[13] 10,000 3 Feb 1923 Not issued
20,000 20 Feb 1923
160 mm × 95 mm (6.3 in × 3.7 in)
1 million 20 Feb 1923
160 mm × 110 mm (6.3 in × 4.3 in)
Third[14] 5,000 15 Mar 1923
Portrait of Hans Urmiller based on Portrait of Hans Urmiller and his Son by Barthel Beham
148 mm × 90 mm (5.8 in × 3.5 in)
500,000 1 May 1923
170 mm × 95 mm (6.7 in × 3.7 in)
2 million 23 Jul 1923
Merchant Georg Giese based on Portrait of Georg Giese by Hans Holbein the Younger
162 mm × 87 mm (6.4 in × 3.4 in)
5 million 1 Jun 1923
170 mm × 95 mm (6.7 in × 3.7 in)
Fourth[15] 100,000 25 Jul 1923
110 mm × 80 mm (4.3 in × 3.1 in)
500,000 25 Jul 1923
175 mm × 80 mm (6.9 in × 3.1 in)
1 million 25 Jul 1923
160 mm × 95 mm (6.3 in × 3.7 in)
1 million 25 Jul 1923
185 mm × 80 mm (7.3 in × 3.1 in)
5 million 25 Jul 1923
190 mm × 80 mm (7.5 in × 3.1 in)
10 million 25 Jul 1923
195 mm × 80 mm (7.7 in × 3.1 in)
20 million 25 Jul 1923
195 mm × 83 mm (7.7 in × 3.3 in)
50 million 25 Jul 1923
195 mm × 86 mm (7.7 in × 3.4 in)
Fifth[16] 50,000 9 Aug 1923
105 mm × 70 mm (4.1 in × 2.8 in)
200,000 9 Aug 1923
115 mm × 70 mm (4.5 in × 2.8 in)
1 million 9 Aug 1923
120 mm × 80 mm (4.7 in × 3.1 in)
2 million 9 Aug 1923
125 mm × 80 mm (4.9 in × 3.1 in)
5 million 20 Aug 1923
128 mm × 80 mm (5.0 in × 3.1 in)
10 million 22 Aug 1923
125 mm × 80 mm (4.9 in × 3.1 in)
100 million 22 Aug 1923
150 mm × 85 mm (5.9 in × 3.3 in)
Sixth[17] 20 million 1 Sep 1923
125 mm × 82 mm (4.9 in × 3.2 in)
50 million 1 Sep 1923
124 mm × 84 mm (4.9 in × 3.3 in)
500 million 1 Sep 1923
155 mm × 85 mm (6.1 in × 3.3 in)
500 billion1 Sep 1923 Specimen only
1 trillion1 Sep 1923 Specimen only
Seventh[17] 1 billion5 Sep 1923
Overprinted on 15 Dec 1922 note
140 mm × 90 mm (5.5 in × 3.5 in)
1 billion5 Sep 1923
160 mm × 86 mm (6.3 in × 3.4 in)
5 billion10 Sep 1923
165 mm × 85 mm (6.5 in × 3.3 in)
10 billion15 Sep 1923
10 billion1 Oct 1923
160 mm × 105 mm (6.3 in × 4.1 in)
20 billion1 Oct 1923
140 mm × 90 mm (5.5 in × 3.5 in)
50 billion10 Oct 1923
176 mm × 86 mm (6.9 in × 3.4 in)
200 billion15 Oct 1923
140 mm × 80 mm (5.5 in × 3.1 in)
Eighth[18] 1 billion20 Oct 1923
127 mm × 61 mm (5.0 in × 2.4 in)
5 billion20 Oct 1923
130 mm × 64 mm (5.1 in × 2.5 in)
500 billion20 Oct 1923
Overprinted on 15 Mar 1923 note
Portrait of Hans Urmiller based on Portrait of Hans Urmiller and his Son by Barthel Beham
145 mm × 90 mm (5.7 in × 3.5 in)
Ninth[18] 50 billion26 Oct 1923
135 mm × 65 mm (5.3 in × 2.6 in)
100 billion26 Oct 1923
135 mm × 65 mm (5.3 in × 2.6 in)
500 billion26 Oct 1923
137 mm × 65 mm (5.4 in × 2.6 in)
100 billion26 Oct 1923 174 mm × 86 mm (6.9 in × 3.4 in)
Tenth[19] 1 trillion1 Nov 1923
137 mm × 65 mm (5.4 in × 2.6 in)
5 trillion1 Nov 1923
168 mm × 86 mm (6.6 in × 3.4 in)
10 trillion1 Nov 1923
171 mm × 86 mm (6.7 in × 3.4 in)
10 trillion1 Nov 1923
120 mm × 82 mm (4.7 in × 3.2 in)
Eleventh[20] 100 billion5 Nov 1923
135 mm × 65 mm (5.3 in × 2.6 in)
1 trillion5 Nov 1923
143 mm × 86 mm (5.6 in × 3.4 in)
2 trillion5 Nov 1923
120 mm × 71 mm (4.7 in × 2.8 in)
5 trillion7 Nov 1923
165 mm × 86 mm (6.5 in × 3.4 in)
1924
 First[20] 10 trillion1 Feb 1924
140 mm × 72 mm (5.5 in × 2.8 in)
20 trillion5 Feb 1924
Portrait of a woman based on Portrait of a young Venetian woman by Albrecht Dürer
160 mm × 95 mm (6.3 in × 3.7 in)
50 trillion10 Feb 1924
Jakob Muffel based on Portrait of Jakob Muffel by Albrecht Dürer
175 mm × 95 mm (6.9 in × 3.7 in)
100 trillion15 Feb 1924
Portrait of Willibald Pirckheimer based on a painting by Albrecht Dürer
180 mm × 95 mm (7.1 in × 3.7 in)
Second[21] 5 trillion15 Mar 1924
120 mm × 72 mm (4.7 in × 2.8 in)

Danzig

The Danziger Privat Actien-Bank (opened 1856) was the first bank established in Danzig.[22] They issued two series of notes denominated in thalers (1857 and 1862–73) prior to issuing the mark (1875, 1882, 1887).[23] These mark issues are extremely rare.[23] 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.[24]

Issuance of the Danzig Papiermark

The Papiermark was issued by Danzig from 1914 to 1923.[25] Five series were issued during World War I by the City Council (1914, 1916, 1918 first and second issue, and 1919).[26] Denominations ranged from 10 pfennig to 20 mark.[26] 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).[27] The 1922 issue (31 October 1922) was denominated in 100, 500, and 1000 mark notes.[28] The denominations for the 1923 issue were 1000 (15 March 1923), and 10000 and 50000 mark notes (20 March 1923).[29] The 1923 provisional issue reused earlier notes with a large red stamp indicating the new (and higher) denominations of 1 million (8 August 1923) and 5 million (15 October 1923) mark.[30] The last series of Danzig mark was the 1923 inflation issue of 1 million (8 August 1923), 10 million (31 August 1923), 100 million (22 September 1923), 500 million (26 September 1923), 5 billion and 10 billion mark notes (11 October 1923).[31] The Danzig mark was replaced by the Danzig gulden, first issued by the Danzig Central Finance Department on 22 October 1923.[31]

Papiermark of Danzig
Issue Value Image
1914 Emergency
 50 Pfennig
1 Mark
2 Mark
3 Mark
1916
 10 Pfennig
50 Pfennig
1918 First
 5 Mark
20 Mark
1918 Second
 50 Pfennig
20 Mark
1919
 50 Pfennig
1922
 100
500
1,000
1923 First
 1,000
10,000
10,000
50,000
1923 Provisional
 1 million
5 million
1923 Inflation
 1 million
10 million
100 million
500 million
5 billion
10 billion

Note on numeration
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.

See also

Notes
  1. All values are in Reichsbank Mark.
  2. Series date printed on the banknote.

    Citations
    1. Knapp, George Friedrich (1924), The State Theory of Money, Macmillan and Company, pp. vxi
    2. "Biografie Hans Luther" (in German). Bayerische Nationalbibliothek. Retrieved 15 August 2020.
    3. 1 Billion Mark - Westfalen at Numista.com. Accessed on 13 August 2020.
    4. Barisheff 2013, p. 32.
    5. Fischer 2010, p. 85.
    6. Fischer 2010, p. 91.
    7. Widdig 2001, p. 48.
    8. Cuhaj 2010, pp. 555–64.
    9. Cuhaj 2009, pp. 629–36.
    10. Cuhaj 2010, pp. 555–56.
    11. Cuhaj 2010, pp. 556.
    12. Cuhaj 2010, pp. 557.
    13. Cuhaj 2010, pp. 558.
    14. Cuhaj 2010, pp. 558-59.
    15. Cuhaj 2010, pp. 559.
    16. Cuhaj 2010, pp. 560-61.
    17. Cuhaj 2010, pp. 561-62.
    18. Cuhaj 2010, pp. 562.
    19. Cuhaj 2010, pp. 562-63.
    20. Cuhaj 2010, pp. 563.
    21. Cuhaj 2010, pp. 563-64.
    22. Kelly 1920, p. 30.
    23. Cuhaj 2009, p. 613.
    24. Rand McNally 1911, p. 972.
    25. Cuhaj 2010, pp. 427–30.
    26. Cuhaj 2010, pp. 427–28.
    27. Cuhaj 2010, pp. 428–30.
    28. Cuhaj 2010, pp. 428.
    29. Cuhaj 2010, pp. 429.
    30. Cuhaj 2010, pp. 429–30.
    31. Cuhaj 2010, pp. 430.

    References
    Preceded by:
    Goldmark    		 Currency of Germany
    1914 – 1923    		 Succeeded by:
    Rentenmark
    Reason: inflation
    Ratio: 1 Rentenmark = 1,000,000,000 Papiermark, and 4.2 Rentenmark = US$1
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