Papiermark


The Papiermark was a derisive term for the Mark after it went off the gold standard, and most specifically with the era of hyperinflation in Germany of 1922 and 1923. Formally, the same German mark was used from 1871 to 1923. Like many countries, Germany departed the gold standard due to the outbreak of World War I, and stopped issuing gold coins backed in marks in August 1914. Precious metals rapidly disappeared from circulation, and inflation occurred as paper money was used to cover war debts in 1914 to 1918. Still, the papiermark is more associated with the early Weimar Republic era, when inflation grew out of control. By the time the mark was retired from circulation and renominated in December 1923, banknotes had amounts in the billions and trillions of marks by face value.

History

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 -ℳ︁ to RM1. On 30 August 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 and Notgeld, 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 the free city.

Coins

During the war, cheaper metals were introduced for coins, including aluminium, zinc and iron, although silver 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 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.

First World War issues

In 1914, the State Loan Office began issuing paper money known as Darlehnskassenschein. These circulated alongside the issues of the Reichsbank. Most were 1ℳ︁ and 2ℳ︁ notes but there were also 5ℳ︁, 20ℳ︁, 50ℳ︁ and 100ℳ︁ notes.

Post-war issues

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 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 the cost of a gold 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. Historically, this one-month inflation rate has only been exceeded three times: Yugoslavia, 313,000,000% ; Zimbabwe, 79.6 billion% ; and Hungary, 41.9 quadrillion%.
On 15 November 1923 the Papiermark was replaced by the Rentenmark at RM4.2 Rentenmark = US$1, or 1 trillion-ℳ︁ = RM1.
During the hyperinflation, ever higher denominations of banknotes were issued by the Reichsbank and other institutions. 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 -ℳ︁ notes introduced in September. The hyperinflation peaked in October 1923 and banknote denominations rose to 100-trillion -ℳ︁. At the end of the hyperinflation, these notes were worth approximately £stg5.2 or US$23.81.

Weimar Republic (1920–24)

YearIssueValueDateImageComments
192010ℳ︁
192050ℳ︁
1920100ℳ︁Portraits based on the Bamberg riders at Bamberg Cathedral
192210,000ℳ︁Portrait of a young Man by Albrecht Dürer
1922500ℳ︁Jakob Meyer of the Meyer zum Pfeil family
1922500ℳ︁
1922100ℳ︁
19221,000ℳ︁
19225,000ℳ︁Section of Portrait of a Man with a Coin by Hans Memling
19225,000ℳ︁Portrait of Hans Urmiller based on Portrait of Hans Urmiller and his Son by Barthel Beham
192250,000ℳ︁Bürgermeister Arnold von Brauweiler based on Burgomaster Arnold von Brauweiler by Barthel Bruyn the Elder
19225,000ℳ︁Merchant Imhof based on Portrait of a Man by Albrecht Dürer
19221,000ℳ︁Portrait of Jörg Herz based on Jörg Herz Nürnberger Münzmeister by Georg Pencz
1923100,000ℳ︁Merchant Georg Giese based on Portrait of Georg Giese by Hans Holbein the Younger
192310,000ℳ︁Not issued
192320,000ℳ︁
19231,000,000ℳ︁
19235,000ℳ︁Portrait of Hans Urmiller based on Portrait of Hans Urmiller and his Son by Barthel Beham
1923500,000ℳ︁
19232,000,000ℳ︁Merchant Georg Giese based on Portrait of Georg Giese by Hans Holbein the Younger
19235,000,000ℳ︁
1923100,000ℳ︁
1923500,000ℳ︁
19231,000,000ℳ︁
19231,000,000ℳ︁
19235,000,000ℳ︁
192310,000,000ℳ︁
192320,000,000ℳ︁
192350,000,000ℳ︁
192350,000ℳ︁
1923200,000ℳ︁
19231,000,000ℳ︁
19232,000,000ℳ︁
19235,000,000ℳ︁
192310,000,000ℳ︁
1923100,000,000ℳ︁
192320,000,000ℳ︁
192350,000,000ℳ︁
1923500,000,000ℳ︁
1923500,000,000,000ℳ︁Specimen only
19231,000,000,000,000ℳ︁Specimen only
19231,000,000,000ℳ︁Overprinted on 15 Dec 1922 note
19231,000,000,000ℳ︁
19235,000,000,000ℳ︁
192310,000,000,000ℳ︁
192310,000,000,000ℳ︁
192320,000,000,000ℳ︁
192350,000,000,000ℳ︁
1923200,000,000,000ℳ︁
19231,000,000,000ℳ︁
19235,000,000,000ℳ︁
1923500,000,000,000ℳ︁Overprinted on 15 Mar 1923 note
Portrait of Hans Urmiller based on Portrait of Hans Urmiller and his Son by Barthel Beham
192350,000,000,000ℳ︁
1923100,000,000,000ℳ︁
1923500,000,000,000ℳ︁
1923100,000,000,000ℳ︁
19231,000,000,000,000ℳ︁
19235,000,000,000,000ℳ︁
192310,000,000,000,000ℳ︁
192310,000,000,000,000ℳ︁
1923100,000,000,000ℳ︁
19231,000,000,000,000ℳ︁
19232,000,000,000,000ℳ︁
19235,000,000,000,000ℳ︁
192410,000,000,000,000ℳ︁
192420,000,000,000,000ℳ︁Portrait of a woman based on Portrait of a young Venetian woman by Albrecht Dürer
192450,000,000,000,000ℳ︁Jakob Muffel based on Portrait of Jakob Muffel by Albrecht Dürer
1924100,000,000,000,000ℳ︁Portrait of Willibald Pirckheimer based on a painting by Albrecht Dürer
19245,000,000,000,000ℳ︁