Reichsmark


The Reichsmark was the currency of Germany from 1924 until the fall of Nazi Germany in 1945, and in the American, British and French occupied zones of Germany, until 20 June 1948. The Reichsmark was then replaced by the Deutsche Mark, to become the currency of West Germany and then all of Germany after the 1990 reunification. The Reichsmark was used in the Soviet occupation zone in Germany until 23 June 1948, where it was replaced by the East German mark. The Reichsmark was subdivided into 100 Reichspfennig. The Mark is an ancient Germanic weight measure, traditionally a half pound, later used for several coins; Reich comes from the official name for the German state from 1871 to 1945, German Reich.

History

The Reichsmark was introduced in 1924 as a permanent replacement for the Papiermark. This was necessary due to the 1920s German inflation which had reached its peak in 1923. The exchange rate between the old Papiermark and the Reichsmark was = 1012 ℳ︁. To stabilize the economy and to smooth the transition, the Papiermark was not directly replaced by the Reichsmark, but by the Rentenmark, an interim currency backed by the Deutsche Rentenbank, owning industrial and agricultural real estate assets. The Reichsmark was put on the gold standard at the rate previously used by the German mark, with the U.S. dollar worth.

Expansion outside the Reichsmark

During this period a number of shell companies were created and authorized to issue bonds outside the Reichsmark in order to finance state projects. Nominally exchangeable at a 1:1 rate for Reichsmarks but then discounted by the Reichsbank this created secret monetary expansion without formally renouncing the gold standard of the Reichsmark.

World War II

With the annexation of the Federal State of Austria by Germany in 1938, the Reichsmark replaced the Austrian schilling. During the Second World War, Germany established fixed exchange rates between the Reichsmark and the currencies of the occupied and allied countries, often set so as to give economic benefits to German soldiers and civilian contractors, who were paid their wages in local currency. The rates were as follows:
CurrencyDate setValue per
Belgian francMay 1940Fr100
Belgian francJuly 1940Fr125
Bohemia and Moravia crownApril 1939K100
Bulgarian lev1940Lev333.33
Danish crown1940DKr10
French francMay 1940Fr200
Italian lira1943Lit100
Luxembourg francMay 1940Fr40
Luxembourg francJuly 1940Fr100
Dutch guilder10 May 1940ƒ6.66
Dutch guilder17 July 1940ƒ7.57
Norwegian crown1940NKr13.33
Norwegian crown?NKr17.50
Polish złoty1939zł20
Sterling 1940£017sd
Croatian kunaApril 1941Kn200
Slovak crown1939Sk100
Slovak crown1 October 1940Sk116.20
Finnish mark1941FMk197.44

Post-war

After the Second World War, the Reichsmark continued to circulate in Germany, but with new banknotes printed in the US and in the Soviet zones, as well as with coins. Inflation in the final months of the war had reduced the value of the Reichsmark from = $1US to = $1US and a barter economy emerged due to the rapid depreciation.
After V-E Day, the Reichsmark's value decreased to 200 per dollar. While for German civilians one Allied Occupation Mark was equivalent to one Reichsmark, soldiers selling things civilians wanted on the black market could receive Reichsmarks, exchange them for Allied Occupation Marks, then exchange Allied Occupation Marks at ten per dollar. A carton of American cigarettes the post exchange sold to soldiers for $0.50 was worth 150 marks or $15 to German civilians; matches were the change.
The Currency Reform of 1948 replaced the Reichsmark with the Deutsche Mark at a rate of 10:1 in June 1948 in the Trizone and later in the same year by the East German mark in the Soviet Occupation Zone. The reform under the direction of Ludwig Erhard is considered the beginning of the West German economic recovery; however, the secret plan to introduce the Deutsche Mark in the Trizone was formulated by economist Edward A. Tenenbaum of the US military government, and was executed abruptly on 21 June 1948. Three days later, the new currency also replaced the Reichsmark in the three Western sectors of Berlin. In November 1945, the Reichsmark was superseded by the Second Austrian schilling in Austria. In 1947, the Saar mark, later replaced with the Saar franc, was introduced in the Saar.

Coins

Denominations

In 1924, coins were introduced in denominations of 1 ℛ︁₰, 2 ℛ︁₰, 5 ℛ︁₰, 10 ℛ︁₰, and 50 ℛ︁₰, and 1 ℳ︁ and 3 ℳ︁.

4

4'Reichspfennig' coins were issued in 1932 as part of a failed attempt by the Reichskanzler Heinrich Brüning to reduce prices through use of 4 ℛ︁₰ pieces instead of 5 ℛ︁₰ coins. Known as the Brüningtaler or Armer Heinrich, they were demonetized the following year. See Brüningtaler. The quality of the Reichsmark coins decreased more and more towards the end of World War II and misprints happened more frequently. Since the 4 ℛ︁₰ coin was only slightly larger than the 1 ℳ︁ coin and the imperial eagle looked similar, an attempt was made to pass it off as a 1-reichsmark coin by silvering the 4 ℛ︁₰ coin.

10

The zinc 10 Reichspfennig coin was minted by Nazi Germany between 1940 and 1945 during World War II, replacing the aluminium-bronze version, which had a distinct golden colour. It is worth or.10 of a Reichsmark. Made entirely of zinc, the 10 ℛ︁₰ is an emergency issue type, similar to the zinc 1 ℛ︁₰ and 5 ℛ︁₰, and the aluminium 50 ℛ︁₰ coins from the same period.

Mint marks

Nazi Germany had a number of mints. Each mint location had its own identifiable letter. It is therefore possible to identify exactly which mint produced what coin by noting the mint mark on the coin. Not all mints were authorized to produce coins every year. The mints were also only authorized to produce a set number of coins with some mints allocated a greater production than others. Some of the coins with particular mint marks are therefore scarcer than others. With the silver and coins, the mint mark is found under the date on the left side of the coin. On the smaller denomination Reichspfennig coins, the mint mark is found on the bottom center of the coin.
Mint markMint locationNotesReferences
AState Mint Berlin, GermanyCapital of Germany
BAustrian Mint Vienna, AustriaCapital of Austria
DBavarian Central Mint Munich, GermanyCapital of Bavaria
E near Dresden, GermanyCapital of Saxony
F Stuttgart, GermanyCapital of Württemberg
G Karlsruhe, GermanyCapital of Baden
JMint of Hamburg, Germany

Mintage

YearMintageNotes
1940 A212,948,000
1940 B76,274,000
1940 D45,434,000
1940 E34,350,000
1940 F27,603,000
1940 G27,308,000
1940 J41,678,000

YearMintageNotes
1941 A240,284,000
1941 B70,747,000
1941 D77,560,000
1941 E36,548,000
1941 F42,834,000
1941 G28,765,000
1941 J30,525,000

YearMintageNotes
1942 A184,545,000
1942 B16,329,000
1942 D40,852,000
1942 E18,334,000
1942 F32,690,000
1942 G20,295,000
1942 J29,957,000

YearMintageNotes
1943 A157,357,000
1943 B11,940,000
1943 D17,304,000
1943 E10,445,000
1943 F24,804,000
1943 G3,618,000Rare
1943 J1,821,000Rare

YearMintageNotes
1944 A84,164,000
1944 B40,781,000
1944 D30,369,000
1944 E29,963,000
1944 F19,639,000
1944 G13,023,000

YearMintageNotes
1945 A7,112,000Rare
1945 E4,897,000Rare