German currency history
The history of German currency since the founding of the Reich (1871) has been shaped by the introduction of a single currency and a series of subsequent currency reforms . After the introduction of the gold-backed mark in 1871, the First World War initially brought about the lifting of the gold-backed mark, followed by hyperinflation in 1923 . The hyperinflation could be stopped by changing the currency to the Rentenmark (later Reichsmark ). After the Second World War , the Reichsmark also collapsed. In 1948 the German mark was introduced in the three western occupation zones and the GDR mark in the Soviet occupation zone. In 1990, the two German states formed in 1949 were united on the basis of the Deutsche Mark, and the euro was introduced in 1999/2002 .
Mark (1871-1923)
The mark of the new German Empire
After the victory over France in the Franco-Prussian War (1870/71) and the establishment of the German Empire on January 1, 1871, the Reichstag passed the first Reich Coin Act on December 4, 1871. The law contains two particularly important provisions. Firstly, a uniform imperial currency, the mark divided into 100 pfennigs , is introduced. Second, the mark was designed as a gold-backed currency (→ gold standard ). With the exception of Bremen , silver currencies in talers or gulden were previously used in the old German states . Another name for the gold-covered mark ("Reich gold currency") is "Goldmark". Mark , however, was the official name as it was given on the coins and banknotes of the time.
The law did not yet contain any structuring provisions for the pennies. A special regulation was true of Bavaria, the penny after there in Bedürfnißfall in half pennies, the Heller could be divided. Bavaria has never made use of this regulation. The second Reich Coin Act of July 9, 1873 contained more precise regulations for the silver coins still in circulation and the small coins. Between the two Reich coin laws, the two Mecklenburg states were the only German states to have small coins (1, 2 and 5 pfennig coins) minted in 1872, which stated their relationship to the mark in the inscription on their value side (e.g. TWENTY ONE MARK for the 5 pfennig piece). With the entry into force of the second Reich Coin Act in 1873, all coins were designed uniformly across the empire. The Mecklenburg pfennig coins from 1872 no longer complied with this law and were suspended in 1878.
The first 20 mark coins for Prussia were minted in gold as early as 1871. At the same time, some countries had small coins minted in their previous currencies until 1873 (for example, Württemberg the 1-Kreuzer coin). From 1873 only coins were minted according to the new mark currency. The Reich coin legislation of 1871 and 1873 is one of the earliest standardization measures in the newly founded German Empire.
The system in Germany was uniform for the small coins among the course coins (i.e. for 1, 2, 5, 10, 20, 25 and 50 Pfennig and 1/2 and 1 Mark). They showed the nominal value ( face value ) on one side and the imperial eagle on the other. In the case of the large denominations (2, 3, 5, 10 and 20 marks) the system worked like that of the euro : uniform front (imperial eagle + denomination) and national back. Until 1918, all states in Germany had the right to mint. The following states were minted for circulation: Prussia (mint marks A, B and C), Bavaria (D), Saxony (E), Württemberg (F), Baden (G), Hessen-Darmstadt (H) and Hamburg (J). Smaller states only issued commemorative coins on special occasions (e.g. the ruler's birthday or anniversary of the reign).
The purchasing power of the mark can be calculated using the long series published earlier by the Federal Statistical Office and the current consumer price index (as of January 2018):
- 1 mark (1873) would correspond to 6.40 euros
- 1 mark (1900) would be equivalent to 6.70 euros
- 1 mark (1913) would be the equivalent of 5.20 euros
- 1 mark (1918) would be 1.60 euros.
It should be noted that these purchasing power equivalents only reflect the change in average purchasing power as measured by the development of consumer prices. Using a different price index or the price development of selected goods would lead to a different result. In addition, a purchasing power calculation must abstract from the change in the general level of prosperity.
The mark at the time of the (First) World War and until 1923
Like other states, the German Reich stopped issuing gold coins for other money at the beginning of the First World War . Instead, Reich cash bills and Reichsbanknotes were issued (August 4, 1914). Since the silver coins also disappeared from circulation, the “ paper mark ” was effectively introduced and the gold standard abandoned. From 1915 onwards, inflation slowly set in due to the war economy and the unlimited possibility of monetary state financing. Coins were no longer made from gold, silver, copper-nickel alloy, bronze or pure nickel, but from cheaper base metals such as iron, zinc and aluminum. In addition, mostly paper emergency money was also issued by local authorities and large companies. The official statistical price index from August 1914 to the end of the war in November 1918 was “only” about 1: 3. However, the poorer quality of war goods compared to pre-war goods would have to be taken into account, as well as the management of shortages with goods purchase cards and a not inconsiderable "black market" with significantly higher prices than those set by the state, which is not reflected in the statistics here.
The inflation took until 1923 inexorably as strong as a result of reparations to that were almost completely canceled on Mark-denominated banknotes and deposits (hyperinflation) . In mid-November 1923, the calculation basis was the trillion - so-called paper marks . This mark was converted or exchanged for a new Rentenmark on November 15, 1923 at the rate of 1,000,000,000,000 to 1 . Trillion mark notes were in circulation until the summer of 1924. The Reichsmark was introduced towards the end of 1924 ; Remaining stocks of marks could be exchanged for "valuable" items. This explains why trillion notes are rare today and have a high collector's value.
The emergency coin with the highest face value of all time, the 1 trillion mark piece from the province of Westphalia from 1923, which had already been devalued by the planned issue date due to hyperinflation, was only used as a souvenir (without monetary function ) issued.
Rentenmark (1923-1924)
The Rentenmark officially stopped the hyperinflation on November 15, 1923 and replaced the paper mark in a ratio of 1: 1 trillion . It was originally only intended as a temporary solution. It was called Rentenmark because it was “covered” by “pension income” from property mortgages. It was published in the Rentenbank under the roof of the Reichsbank. The Rentenmark was supplemented by the Reichsmark on August 30, 1924. Their denominations were finally invalidated together with the Reichsmark in the currency reform of 1948. It was always at a rate of 1: 1 to the Reichsmark. Its abbreviated name was initially "Rent.Mark".
Reichsmark (1924–1948)
When the gold reserves were sufficient again in 1924 to cover a currency in international payments, the interim solution "Rentenmark" was supplemented by the Reichsmark. It was supposed to replace the Rentenmark, but that practically never happened. The first Reichsmark banknotes and Reichspfennig coins were officially issued on August 30, 1924. The exchange rate was 1: 1 to the circulating Rentenmark. The early Rentenmark banknotes from 1923 were withdrawn, but later Rentenmark banknotes of smaller denominations and the Rentenpfennig coins remained valid in parallel to the Reichsmark until 1948. The Reichsmark was quite stable until the Great Depression in 1929. During the time of National Socialism , however, a lot of uncovered money was spent on Mefo bills to finance the costs of armament and later the war and other projects. This contributed decisively to a hidden inflation , which citizens did not initially feel due to the state price and wage regulation. A so-called "backed-up inflation" occurred, which became visible to the population after the lost world war. As early as 1943, the Reichsmark could no longer be converted on the international currency market because it had become worthless. It was replaced - together with the small Rentenmark banknotes - in the western zones and the three western sectors of Berlin from June 20, 1948 by the German mark (DM). (The "Bank Deutscher Länder", the predecessor of the later "Deutsche Bundesbank", acted as the central bank.) There were graduated exchange ratios to DM for different amounts of money. Every citizen was allowed to exchange up to 1000 RM at a rate of 10: 1. On June 23, 1948, there was also a currency reform in the Eastern Zone. The exchange ratio was also 10: 1.
Conversion information (purchasing power) according to information from the Federal Statistical Office (for further information, see purchasing power calculations for the mark):
- 1 Reichsmark (1924) would be equivalent to EUR 3.60
- 1 Reichsmark (1929) would be equivalent to 3.10 euros
- 1 Reichsmark (1933) would be equivalent to 4.00 euros
- 1 Reichsmark (1939) would be equivalent to 3.70 euros
- 1 Reichsmark (1944) would be equivalent to 3.30 euros
The current counter values refer to August 2008. Due to the war economy and the need to redeem additional reference stamps for the purchase of many everyday goods, as well as the general rationing and product quality reductions through substitute and substitute materials, the information for 1944 is only very limited. The black market prices were already significantly higher than the officially set prices during the war and literally "exploded" from May 1945 to 1948.
Allied Military Mark (1944–1948)
During and after the Second World War, the Allies occupied territories gave the military marks of (Allied Military Currency), which had until the currency reform in 1948 parallel to the old Reichsmark validity in Germany. There were also AMC in local currency in Austria, Italy, France, Poland, Hungary and Czechoslovakia.
The Allied military mark notes, which had already been printed in 1944 in the USA and the Soviet Goznak, were available in denominations of 0.50 Marks to 1000 Marks. The US Treasury gave the Soviet allies printing plates for it. In contrast to the Soviet printing plates, the American printing plates had an English "F" (after the company "Forbes") on the front in the ornamentation. It was (as a whole) legal tender for the payment of Mark debts of all kinds. Nobody was allowed to treat the Allied Military Mark and the legal banknotes denominated in Reichsmarks differently.
American soldiers were allowed to exchange military marks for US dollars . Red Army soldiers were not allowed to exchange their military marks for rubles. In July 1945 alone, 3 million US dollars were transferred home, although only 1 million in wages were paid out to the soldiers. The total loss to the U.S. Treasury was $ 530 million.
The coins were 1 pfennig pieces (1945 and 1946, the rare coins with the year 1944 are not regular coins), 5 pfennigs (1947, 1948) and 10 pfennigs (1945 to 1948), all made of zinc. The design of these small coins corresponded to those of the so-called Third Reich, only the swastika in the eagle's claws was replaced by the eagle's tail feathers.
German Mark (1948-2001)
The Western Zones implemented a currency reform on June 20, 1948 . The banknotes had previously been printed in the USA and brought to Germany via Bremerhaven in the top secret operation "Bird Dog". The Reichsmark was replaced by the Deutsche Mark at a ratio of 10: 1. The banknotes for West Berlin were marked with a stamp ("Bärenmark"). The small coins from 1 to 50 Pfennig bore the inscription Bank deutscher Länder , which was replaced by this inscription after the establishment of the Federal Republic of Germany. In contrast to what is often shown today, the German mark was not always stable; by the time it ended it had lost around three quarters of its purchasing power. In the 1970s in particular, inflation rates reached an alarming level, as did in the first half of the 1990s. Until the beginning of the 1970s, the Deutsche Mark was indirectly backed by gold through the link ( Bretton Woods system ) to the US dollar. In 1975 the “silver eagle” (5-mark piece) disappeared from wallets as a circulation coin, as the price of silver had risen sharply. From then on they were minted in Magnimat , a Cu - Ni material; In 1975 the phase of silver money in circulation ended in West Germany. From 1979 the 5 DM commemorative coins were also made from Magnimat; only the 10 DM commemorative coins continued to be minted in 625/1000 silver. Gold coins have not existed in Germany since 1918.
Currency of the GDR (1948–1990)
On June 23, 1948, all Reichsmark notes in the Soviet Occupation Zone (SBZ) were marked with adhesive marks ("adhesive marks"). Only on July 24, 1948, a currency reform could be carried out in the Soviet Zone . The Reichsmark was replaced by the Deutsche Mark of the German Central Bank at a ratio of 10: 1 . On October 13, 1957, a second cash cut was made in the GDR in order to reduce the excess cash. Only 300 DM (GDR) could be exchanged, the rest could be credited to the German Central Bank . As a result, DM 267.5 million was withdrawn from circulation .
In 1964 the currency was renamed to Mark of the German Central Bank (MDN). On January 1, 1968, when the State Bank of the GDR was founded, the MDN was renamed the Mark of the GDR . The abbreviation was M. The coins of the GDR were minted in aluminum , only the 50-pfennig piece from 1950 and the 20-pfennig piece from 1969 were minted in brass . There were coins of 1, 5, 10, 20, 50 pfennigs as well as 1 and 2 marks. In addition, 5, 10 and 20 mark commemorative coins were issued. They appeared in tombac , nickel silver and, in small editions, also in silver , trial mintings also in gold .
Euro (since 1999)
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The euro was introduced in Germany on January 1, 1999 as book money and has been in circulation as cash since January 1, 2002 . It was exchanged at a ratio of 1: 1.95583 DM.
Central banks
Until 1945
- January 1, 1876: The Reichsbank is founded as the successor to the Prussian Bank
- 1924: Independence of the Reichsbank from political decisions
- 1935: Abolition of all private central banks
- 1939: Nationalization of the Deutsche Reichsbank
1945–1990 in West Germany
- March 1, 1948: Foundation of the Bank deutscher Länder in Frankfurt am Main as the successor to the Deutsche Reichsbank
- 1951: Independence of the Bank of German Lands from the instructions of the Allies
- July 26, 1957: Founding of the Deutsche Bundesbank as the successor to the Bank deutscher Länder (representation of the independent regional central banks of all western German federal states)
1945–1990 in East Germany
- February 1947: Founding of an issuing bank and a giro bank in each of the five countries of the Soviet occupation zone as the successor to the Deutsche Reichsbank
- May 1948: Foundation of the Deutsche Emissions- und Girobank as the headquarters of the five issuing and giro banks of the federal states
- July 20, 1948: Renaming of the Deutsche Issue- und Girobank to Deutsche Zentralbank
- March 1950: Integration of the five issuing and giro banks of the federal states into the German central bank
- January 1, 1968: Renaming of the German Central Bank to the State Bank of the GDR
From 1990 in all of Germany
- July 1, 1990: The Deutsche Bundesbank becomes the central bank responsible for the GDR through the monetary, economic and social union between the Federal Republic of Germany and the German Democratic Republic . The state bank of the GDR is dissolved.
- June 1, 1998: Foundation of the European Central Bank (ECB) in Frankfurt am Main as the successor to the European Monetary Institute (EWI).
See also
- German money
- German coins
- Monetary history
- penny
- German inflation 1914 to 1923
- List of exchange rates (gold standard)
References
- ^ Hermann Junghans: The last pennies of Mecklenburg. In: Stier und Greif - Blätter zur Kultur- und Landesgeschichte in Mecklenburg-Vorpommern, Volume 20, Schwerin 2010, pp. 79–83 and Geldgeschichtliche Nachrichten, March 2010
- ^ Federal Statistical Office : Consumer price indices for Germany
- ↑ Comparing purchasing power of historical amounts of money: https://www.bundesbank.de/de/statistiken/unternehmen-und-private-haushalte/preise/kaufkraftvergleiche-historischer-geldbetraege-615098#tar-6
- ↑ Peter Menzel: German emergency coins and other money substitute stamps 1873-1932 , Berlin 1982
- ^ Rosenberg, Holger / Grabowski, Hans-Ludwig: The German banknotes from 1871. 18. revised a. extended edition Regenstauf 2011, p. 172.
- ↑ Murray Teigh Bloom: The Man Who Stole Portugal . Secker & Warburg , London 1966, pp. 25f.
- ↑ Arnold / Küthmann / Steinhilber, Large German coin catalog from 1800 to today
- ^ H. Jörg Thieme: Central Bank and Currency of the GDR. In: Deutsche Bundesbank (Ed.): Fifty Years of the Deutsche Mark: Central Bank and Currency in Germany since 1948. CH Beck, Munich 1998, ISBN 3-406-43659-5 , pp. 609–654, here p. 623.
literature
- Paul Arnold , Harald Küthmann , Dirk Steinhilber : Large German coin catalog from 1800 to today (AKS) Battenberg Gietl Verlag, Regenstauf 2016, ISBN 978-3-86646-131-4 with introduction "The basics of German coin history in the 19th century", Pp. 7-10.
- Helmut Kahnt, Martin Pontzen, Michael H. Schöne, Karlheinz Walz: The history of the Deutsche Mark in East and West. Gietl, Regenstauf 2003, ISBN 3-924861-68-4 (chronicle from the 1940s to the introduction of euro cash, economic and monetary policy aspects, details on the production of coins and banknotes).
- Hermann Junghans: The last pennies in Mecklenburg. In: Stier und Greif - sheets on the cultural and regional history in Mecklenburg-Western Pomerania. Volume 20, Schwerin 2010, pp. 79–83 and Geldgeschichtliche Nachrichten. March 2010, p. 82 ff.
- Monika Dickhaus: The Bundesbank in Western European Construction - The International Monetary Policy of the Federal Republic of Germany 1848 to 1958 ( Quarterly Issues for Contemporary History , Volume 72); R. Oldenbourg Verlag , Munich 1996, ISBN 3-486-64572-2 .
