German Rentenmark

The Rentenmark was from 1923 to 1948 due to a fault -based transitional currency in Germany.

Origin

The German Inflation 1914-1923 had successively be almost completely worthless all not in Kurantmünzen held denominated in money market reserves. Although the Mark was introduced in 1871 as a gold -covered currency of the German Empire. 1914, the gold standard was abolished, however; from the " Goldmark " was the paper mark. The devaluation of the Mark went into their final phase on hyperinflation and increasingly paralyzed economic life. From the autumn of 1923 agricultural and industrial producers increasingly refused to deliver the goods against the ever faster becoming worthless paper marks. In some parts of Germany there were riots and looting.

Also called Treasury - - In the summer of 1923, with so-called "value- stable Papiernotgeld " with printed " Goldmark " - and " gold dollar" reference tries to curb inflation. This attempt failed, however.

On the basis of the Regulation on the establishment of Deutsche Bank 's pension of 15 October 1923 ( RGBl. IS 963), the German pension bank was founded in October 1923. In favor of Deutsche Bank 's pension were forcibly occupied with mortgage and real estate mortgages of agriculture, industry and trade. This material assets had not suffered from hyperinflation. The total amount of mortgages and land charges amounted to over 3.2 billion dollars in gold ( " Goldmark "). The value of the property the German pension bank issued interest-bearing pension bank letters about 500 gold marks or a multiple thereof.

The German pension bank issued the first new bank notes with the date November 1, 1923 to November 20, as well as new Rentenpfennig coins with the year 1923 the population parallel to the circumferential high billion and trillion paper marks - nominals as well as circulating in lesser numbers stable value Notgeldbanknoten from. The abbreviation of the new currency was " Rent.M ". Significant influence on the introduction had Reichsbank President Hjalmar Schacht and Chancellor Gustav Stresemann. The Rentenmark was " not legal tender, but a bearer bond, the bond bank" (according Büsch ). The exchange rate for paper mark was set at 1:1 trillion, precisely on November 20, 1923 by determination by the Reichsbank, as the exchange rate of 4.2 trillion paper marks = 1 U.S. dollar was what the pre-war gold mark parity corresponded to the gold dollar. Since the pension Mark was not legal tender, there was no legal compulsion to accept it as payment. Nevertheless, it was accepted by the population immediately, so that the inflation was stopped abruptly. One spoke of the wonders of the Rentenmark.

History

On August 30, 1924, the Reichsmark was introduced in addition to Rentenmark. It applied for pension Mark 1:1 ratio. The Reichsmark was not, as stated erroneously in many specialist works and documents, replaces the pension Mark. Rather continued to be paid with two currencies. The main difference between the two currencies was its differently designed cover. The Rentenmark was supported by the so-called mortgage: Any business, real estate and / or homeowners had to transfer six percent of his base property to the state. The Reichsmark was, however, by material goods of the state - again based on classic style - like coal or gold. For the practical use of both cash these legal differences were of no importance. With the introduction of the Reichsmark, however, was the use of the term " pension Mark " - both in spite of the circulation - banned in all official documents by law. On all pension bank notes, there are no German territorial symbols.

The bond bank persisted over the 1924 addition and the issued Rentenmark denomination remained in circulation. The last Rentenmark bills to 1 and 2 Rentenmark dating on January 30, 1937, issued on 5 September 1939 and were up to the currency reform in 1948 with the Allied occupation zones valid. Originally Rentenmark should be completely replaced no later than 1934, the Reichsmark.

Since Rentenmark and Reichsmarks from the name had practically the same abbreviation " RM" result, there was also no reason to abolish the pension Mark in favor of the Reichsmark and to collect the outstanding pension Mark banknotes consistently. You seem afraid even before that, to generate renewed unrest in the population that had hyperinflation of 1922-1923 still remembered.

Alternative Approaches

A theoretical, never realized precursor of Rentenmark for stopping hyperinflation was the so -called " Rye Mark ", which should have their cover by Karl Helfferich in rye. Germany had almost no gold reserves due to the Versailles Treaty. Another approach was thought potash. Another thought was to create a " bottom mark" according to the proposal by Hans Luther, however, was largely identical to the then newly created Rentenmark. All these thoughts but were discarded. Ultimately, the first physical Rentenmark bills and Rentenpfennig coins were put into circulation in November 1923. For the practical success of the pension Mark, was next to the stop of the banknote printing press, the people's confidence as well as an initially balanced budget significantly.

Effect

In contrast to inflationszerrütteten paper marks the Rentenmark has become a major confidence in the general population. The most important property of the Rentenmark was not the fact that it was coupled ( in a rather theoretical way ) of land, but that their total volume was strictly limited: Rentenmark certificates were valued at 2.4 billion Reichsmarks (then $ 600 million ) issued despite political pressure refused Reichsbank President Hjalmar Schacht, to increase the amount later. The goal was to make money in Germany again scarce and therefore valuable.

Rentenmark banknotes from November 1923

2 Rentenmark

5 Rentenmark

10 Rentenmark

100 Rentenmark

1,000 Rentenmark