TheReichsmark(German:[ˈʁaɪçsˌmaʁk];sign:ℛ︁ℳ︁;abbreviation:RM) was thecurrencyofGermanyfrom 1924 until the fall ofNazi Germanyin 1945, and in theAmerican, British and French occupied zones of Germany,until 20 June 1948. The Reichsmark was then replaced by theDeutsche Mark,to become the currency ofWest Germanyand then all of Germany after the 1990 reunification. The Reichsmark was used in theSoviet occupation zone of Germanyuntil 23 June 1948, where it was replaced by theEast German mark.The Reichsmark was subdivided into 100Reichspfennig(Rpf or ℛ︁₰).[1]TheMarkis an ancient Germanic weight measure, traditionally a half pound, later used for several coins;Reich(empirein English) comes from the official name for the German state from 1871 to 1945,Deutsches Reich.

Reichsmark
2 ℛ︁ℳ︁—coin depictingPaul von Hindenburg
Unit
PluralReichsmark
Symbolℛ︁ℳ︁
Denominations
Subunit
1100Reichspfennig
Plural
ReichspfennigReichspfennig
Banknotes5 ℛ︁ℳ︁, 10 ℛ︁ℳ︁, 20 ℛ︁ℳ︁ 50 ℛ︁ℳ︁, 100 ℛ︁ℳ︁, 1,000 ℛ︁ℳ︁
Coins1 ℛ︁₰, 2 ℛ︁₰, 5 ℛ︁₰, 10 ℛ︁₰, 50 ℛ︁₰, 1 ℛ︁ℳ︁, 2 ℛ︁ℳ︁, 5 ℛ︁ℳ︁
Demographics
Date of introduction1924
ReplacedGerman Rentenmark
Date of withdrawal
Replaced by
User(s)
Issuance
Central bankReichsbank
Valuation
Pegged byBelgian franc,Bohemian and Moravian koruna,Bulgarian lev,Danish krone,French franc,Italian lira,Luxembourg franc,Dutch gulden,Norwegian krone,Polish złoty,Serbian dinar,Slovak koruna (1939–1945),Ukrainian karbovanetsinWorld War IIas similar rates
This infobox shows the latest status before this currency was rendered obsolete.

History

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The Reichsmark was introduced in 1924 as a permanent replacement for thePapiermark.This was necessary due to the1920s German inflationwhich had reached its peak in 1923. The exchange rate between the oldPapiermarkand the Reichsmark was 1 ℛ︁ℳ︁ = 1012ℳ︁(one trillion in American English and French, one billion in German and other European languages and British English of the time; seelong and short scale). To stabilize the economy and to smooth the transition, thePapiermarkwas not directly replaced by the Reichsmark, but by theRentenmark,an interim currency backed by theDeutsche Rentenbank,owning industrial and agricultural real estate assets. The Reichsmark was put on thegold standardat the rate previously used by theGerman mark,with theU.S. dollarworth 4.20 ℛ︁ℳ︁.[2]

Expansion outside the Reichsmark

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During this period a number ofshell companieswere created and authorized to issue bonds outside the Reichsmark in order to finance state projects.[3]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.[4]

World War II

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With theannexationof theFederal State of Austriaby Germany in 1938, the Reichsmark replaced theAustrian schilling.During theSecond World War,Germany established fixed exchange rates between the Reichsmark and the currencies of theoccupiedandallied 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:

Currency Date set Value per 10 ℛ︁ℳ︁
Belgian franc May 1940 Fr100
July 1940 Fr125
Bohemia and Moravia crown April 1939 K100
Bulgarian lev 1940 Lev333.33
Danish crown 1940 DKr10
French franc May 1940 Fr200
Italian lira 1943 Lit100
Luxembourg franc May 1940 Fr40
July 1940 Fr100
Dutch guilder 10 May 1940 ƒ6.66
17 July 1940 ƒ7.57
Norwegian crown 1940 NKr13.33
? NKr17.50
Polish zloty 1939 zl20
Sterling(Channel Islands) 1940 £017s4+12d
Croatian kuna April 1941 Kn200
Slovak crown 1939 Sk100
1 October 1940 Sk116.20
Finnish mark 1941 FMk197.44

Post-war

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After theSecond World War,the Reichsmark continued to circulate in Germany, but with new banknotes (Allied Occupation Marks) printed in the US and in theSoviet Zone,as well as with coins (withoutswastikas). Inflation in the final months of the war had reduced the value of the Reichsmark from 2.50 ℛ︁ℳ︁ = $1US to 10 ℛ︁ℳ︁ = $1US and a barter economy had emerged due to the rapid depreciation. The Reichsmark was replaced by theDeutsche Markat a rate of 10:1 (1:1 for cash and current accounts) in June 1948 in theTrizone[5]and later in the same year by theEast German markin the Soviet Occupation Zone (colloquially also "Ostmark", since 1968 officially "Mark der DDR"). The 1948 currency reform under the direction ofLudwig Erhardis considered the beginning of theWest German economic recovery;however, the secret plan to introduce the Deutsche Mark in the Trizone was formulated by economistEdward A. Tenenbaumof theUS military government,and was executed abruptly on 21 June 1948. Three days later, the new currency also replaced the Reichsmark in thethree Western sectors of Berlin.In November 1945, the Reichsmark was superseded by the Second Austrianschillingin Austria. In 1947, theSaar mark,later replaced with theSaar franc,was introduced in theSaar.[6]

Coins

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5 Reichsmark coins without (1936) and with (1938) the Nazi swastika
Prewar bronze Reichspfennig (obverse)
Wartime zinc Reichspfennig (obverse)
Aluminium 50 ℛ︁₰ coin (obverse)

Denominations

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In 1924, coins were introduced in denominations of1 ℛ︁₰,2 ℛ︁₰,5 ℛ︁₰,10 ℛ︁₰, and50 ℛ︁₰,and 1 ℳ︁ and 3 ℳ︁.[7]

4Reichspfennig

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4Reichspfennigcoins were issued in 1932 as part of a failed attempt by theReichskanzlerHeinrich Brüningto reduce prices through use of 4 ℛ︁₰ pieces instead of 5 ℛ︁₰ coins. Known as theBrüningtalerorArmer Heinrich('poor Heinrich'), they were demonetized the following year. SeeBrüningtaler(in German).The quality of the Reichsmark coins decreased more and more towards the end of World War II and misprints happened more frequently.[8][9]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]

10Reichspfennig

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10 Reichspfennig
Value10Reichspfennig
Mass3.52 g
Diameter21 mm
Thickness1.5 mm
EdgePlain
Composition100%Zn
Years of minting1940–1945
Obverse
DesignReichsadlerwithswastika.
Lettering:
Deutsches Reich 1940
Reverse
DesignDenominationand two oak leaves.Mintmarkbelow the denomination and between leaves.
Lettering:
10 Reichspfennig J

The zinc10Reichspfennigcoin was minted byNazi Germanybetween 1940 and 1945 during World War II, replacing the aluminium-bronze version, which had a distinct golden colour. It is worth110or.10 of a Reichsmark. Made entirely ofzinc,the 10 ℛ︁₰ is an emergency issue type, similar to the zinc 1 ℛ︁₰ and5 ℛ︁₰,and thealuminium50 ℛ︁₰coins from the same period.

Mint marks

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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 2 ℛ︁ℳ︁ and 5 ℛ︁ℳ︁ 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.[11]

Mint mark Mint location Notes References
A State MintBerlin,Germany Capital of Germany [11]
B Austrian MintVienna,Austria Capital of Austria [11]
D Bavarian Central MintMunich,Germany Capital of Bavaria [11]
E Muldenhütten Mint[de]nearDresden,Germany Capital of Saxony [11]
F State Mint[de]Stuttgart,Germany Capital of Württemberg [11]
G State Mint[de]Karlsruhe,Germany Capital of Baden [11]
J Mint ofHamburg,Germany [11]

Mintage

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Prewar 10 Reichspfennig (1938A, obverse)
Prewar 10 Reichspfennig (1938A, reverse)
1940
Year Mintage Notes
1940 A 212,948,000
1940 B 76,274,000
1940 D 45,434,000
1940 E 34,350,000
1940 F 27,603,000
1940 G 27,308,000
1940 J 41,678,000
1941
Year Mintage Notes
1941 A 240,284,000
1941 B 70,747,000
1941 D 77,560,000
1941 E 36,548,000
1941 F 42,834,000
1941 G 28,765,000
1941 J 30,525,000
1942
Year Mintage Notes
1942 A 184,545,000
1942 B 16,329,000
1942 D 40,852,000
1942 E 18,334,000
1942 F 32,690,000
1942 G 20,295,000
1942 J 29,957,000
1943
Year Mintage Notes
1943 A 157,357,000
1943 B 11,940,000
1943 D 17,304,000
1943 E 10,445,000
1943 F 24,804,000
1943 G 3,618,000 Rare
1943 J 1,821,000 Rare
1944
Year Mintage Notes
1944 A 84,164,000
1944 B 40,781,000
1944 D 30,369,000
1944 E 29,963,000
1944 F 19,639,000
1944 G 13,023,000
1945[12]
Year Mintage Notes
1945 A 7,112,000 Rare
1945 E 4,897,000 Rare

Banknotes

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The first Reichsmark banknotes were introduced by theReichsbankand state banks such as those ofBavaria,SaxonyandBaden.The first Reichsbank issue of 1924 came in denominations of 10 ℛ︁ℳ︁, 20 ℛ︁ℳ︁, 50 ℛ︁ℳ︁, 100 ℛ︁ℳ︁, and 1,000 ℛ︁ℳ︁. This was followed by a second issue in the same denominations, dated between 1929 and 1936. The second issue commemorated persons who made contributions to German agriculture, industry, economy, science, and architecture: 10 ℛ︁ℳ︁ issued in 1929 commemorated agronomistAlbrecht Thaer;20 ℛ︁ℳ︁ issued in 1929 commemorated engineer, inventor, and industrialistWerner von Siemens;50 ℛ︁ℳ︁ issued in 1933 commemoratedPrussianpolitician and bankerDavid Hansemann;100 ℛ︁ℳ︁ issued in 1935 commemorated chemist and "father of fertilizer industry"Justus von Liebig;1,000 ℛ︁ℳ︁ issued in 1936 commemoratedPrussianarchitectKarl Friedrich Schinkel.

A newer version of 20 ℛ︁ℳ︁ note was introduced in 1939, using a design taken from an unissued AustrianS100 banknote type. 5 ℛ︁ℳ︁ notes were issued in 1942. Throughout this period, the Rentenbank also issued banknotes denominated in Rentenmark, mostly in RM 1 and RM 2 denominations.

In preparation for the occupation of Germany, the United States issued occupation banknotes dated 1944, printed by the Forbes Lithograph Printing Company of Boston. These were printed in similar colours with different sizes for groups of denominations. Notes were issued for12 ℳ︁, 1 ℳ︁, 5 ℳ︁, 10 ℳ︁, 20 ℳ︁, 50 ℳ︁, 100 ℳ︁, and 1,000 ℳ︁. The issuer was theAlliierte Militärbehörde('Allied military authorities') withIn Umlauf gesetzt in Deutschland('in legal circulation in Germany') printed on the obverse.

These notes were convertible to US dollars at a rate of 10:1. Seeing an opportunity to procure foreign hard currency, theSoviet Uniondemanded copies of the engraving plates, ink, and associated equipment in early 1944, and on 14 April 1944Henry MorgenthauandHarry Dexter Whiteof theU.S. Treasury Departmentauthorized the air transfer of these to the USSR. Using a printing plant in occupiedLeipzig,the Soviet authorities printed large runs of occupation marks to fill Soviet coffers with dollars causing inflation and financial instability. An investigation by theUnited States Congress(Occupation Currency Transactions Hearings before the Committee on Appropriations, Armed Services and Banking and Currency,U.S. Senate,1947) found that about $380,000,000 "more currency than there were appropriations for" had been circulated.

In 1947Rhineland-Palatinateissued 5₰ and 10₰ notes withGeldscheinon them.

Occupation Reichsmark

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2 Reichsmark of the occupied territories

Coins and banknotes for circulation in the occupied territories during the war were issued by theReichskreditkassen.Holed, zinc coins in 5 ℛ︁₰ and 10 ℛ︁₰ denominations were struck in 1940 and 1941. Banknotes were issued between 1939 and 1945 in denominations of 50 ℛ︁₰, 1 ℛ︁ℳ︁, 2 ℛ︁ℳ︁, 5 ℛ︁ℳ︁, 20 ℛ︁ℳ︁, and 50 ℛ︁ℳ︁. These served as legal tender alongside the currency of the occupied countries.

The coins were originally planned in great numbers of 100 million and 250 million each of the 5 ℛ︁₰ and 10 ℛ︁₰ coins respectively. The first embossing order, which was issued in April 1940, was about 40 million × 5 ℛ︁₰ and 100 million × 10 ℛ︁₰. The total amount was divided between each of the seven German mints after the embossing key of 1939. The contract was stopped in August 1940 as the Wehrmacht, which had requested the coins for Belgium and France, had no more need of it. When the embossing stopped, only Berlin ( "A" ) and Munich ( "D" ) produced significant quantities, but they still came to only a small extent of original production plans. The majority were melted down due to the limited supply of metal and thus, most mint marks are now quite rare (except for 1940 5 A and D, and 1940 10 A).

Prisoner of war camp issue ofLagergeld[de]

Concentration camp and POW Reichsmark currency

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Various special issues of Reichsmark currency were issued for use inconcentrationandprisoner of war(POW) camps (Stalag). None were legal tender in Germany itself. From 1942 to 1943 tokens were struck for use within theŁódź Ghetto.[13][citation needed]

Military Reichsmark currency

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Both sides of a "5 Mark" banknote, issued as "Allied Military Currency" for use within the Allied forces in Germany

Special issues of Reichsmark currency were issued for use by theWehrmachtfrom 1942 to 1944. The first issue was denominated in 1 ℛ︁₰, 5 ℛ︁₰, 10 ℛ︁₰, and 50 ℛ︁₰ and 1 ℛ︁ℳ︁, but was valued at 1 military Reichspfennig = 10 civilian Reichspfennig. This series was printed on only one side. The second issue notes of 1 ℛ︁ℳ︁, 5 ℛ︁ℳ︁, 10 ℛ︁ℳ︁, and 50 ℛ︁ℳ︁ were equal in value to the ordinary German Reichsmark and were printed on both sides.

The 5 Mark note pictured, front and back, is Allied military currency ( "AMC" ) printed at Forbes Lithograph Manufacturing Company in Boston for occupied Germany. There were different AMCs for each liberated area of Europe.[14]

See also

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References

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  1. ^"Reichspfennig – Schreibung, Definition, Bedeutung, Synonyme, Beispiele".DWDS(in German). 2023-02-14.Retrieved2024-06-23.
  2. ^Kofner, Yuri (2023-01-03)."MIWI Institute – 150 years of German monetary history".MIWI Institute.Retrieved2024-06-23.
  3. ^Bastisch, Andre (2007).Arbeitsbeschaffungsmaßnahmen im Dritten Reich von 1933-1936.GRIN Verlag.ISBN978-3-638-68655-6.OCLC724193260.
  4. ^Kopper, Christopher (April 1998)."Banking in National Socialist Germany, 1933–39".Financial History Review.5(1): 49–62.doi:10.1017/s0968565000001414.ISSN0968-5650.S2CID154770245.
  5. ^"The Deutsche Mark and its Legacy".ThoughtCo.Retrieved2024-06-23.
  6. ^"Law 1947-2158 of 15 November 1947".Journal Officiel de la République Française(in French) (1947–268): 11294. 15 November 1947.Retrieved21 October2020.
  7. ^"worldcoingallery.com/countries/Germany_all3.html".World Coin Gallery.Retrieved2024-06-23.
  8. ^Matthias Kordes:Die Geschichte der Münzen in Westfalen von 1855–2005.In: Sparkasse Vest Recklinghausen (Hrsg.):150 Jahre Sparkasse Vest Recklinghausen. Gut für die Region.Sparkasse Vest Recklinghausen, Recklinghausen
  9. ^Dieter Petzina:Hauptprobleme der deutschen Wirtschaftspolitik 1932/33.In:Vierteljahrshefte für Zeitgeschichte.1967, 15. Jahrgang, Heft 1, S. 18–55 (PDF).
  10. ^Ausgabe neuer Reichskupfermünzen zu 4 Reichspfennig.In:Die Fahrt,hrsg:Berliner Verkehrs-Aktiengesellschaft,4. Jg., Nr. 7 (1. April 1932), S. 49
  11. ^abcdefgh"Nazi Germany Coin Mint Marks".Archived fromthe originalon 2017-12-11.Retrieved2013-01-16.
  12. ^"10 Reichspfennig - Germany - 1871-1948 - Numista".Numista.Retrieved2013-01-16.
  13. ^"Lodz Ghetto Token Coinage".www.pcgs.com.Archived fromthe originalon 2018-03-01.Retrieved2018-03-01.
  14. ^"Allied Military Currency".Strictly G.I. Archived fromthe originalon 6 January 2009.Retrieved18 March2015.

Further reading

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Preceded by:
Rentenmark
Reason:hyperinflation
Ratio:1 Rentenmark = 1,000,000,000,000 Papiermark, and 4.2 Rentenmark =US$1
Currency of Germany
(Weimar Republicborders)

1924 – 1948
Note:In parallel withRentenmark
Succeeded by:
East German Mark
Reason:reaction to the changeover inTrizone(later West Germany andWest Berlin)
Ratio:1 Mark = 7 Rentenmark on the first 70 Rentenmark for private individuals, otherwise 1 Kuponmark = 10 Rentenmark
Succeeded by:
Deutsche Mark
Reason:intended to protect West Germany from the second wave ofhyperinflationand stop the rampant barter andblack markettrade
Ratio:1 Deutsche Mark = 1 Rentenmark for first 600 ℛ︁ℳ︁, 1 Deutsche Mark = 10 Rentenmark thereafter, plus each person received 40 Deutsche Mark
Succeeded by:
Polish złoty
Reason:Transfer of the "Recovered Territories"toPoland
Ratio:None
Succeeded by:
Soviet ruble
Reason:Transfer of modernKaliningrad OblasttoSoviet Union
Ratio:None
Preceded by:
French franc
Reason:annexation toGermany
Ratio:?
Currency ofSaarland
1935 – 1947
Note:In parallel withRentenmark
Succeeded by:
Saar mark
Reason:creation of theprotectorate
Ratio:?
Preceded by:
Austrian schilling
Reason:annexation to Germany
Ratio:1 Mark = 1.5 Schilling
Currency of Austria
1938 – 1945
Note:In parallel withRentenmark
Succeeded by:
Austrian schilling
Reason:restoration of independence
Ratio:1:1 for first 150 Schilling
Preceded by:
Czechoslovak koruna
Reason:annexation toGermany
Ratio:?
Currency ofSudetenland
1938 – 1945
Note:In parallel withRentenmark
Succeeded by:
Czechoslovak koruna
Reason:re-integration toCzechoslovakia
Ratio:?
Preceded by:
Lithuanian litas
Reason:annexation toGermany
Ratio:1 Mark = 2.5 litas
Currency ofKlaipėda(Memel)
1939 – 1945
Note:In parallel withRentenmark
Succeeded by:
Soviet ruble
Reason:re-integration toSoviet Union
Ratio:?
Preceded by:
Danzig gulden
Reason:annexation toGermany
Ratio:1 Mark = 1.43 Gulden
Currency of theFree City of Danzig
1939 – 1945
Note:In parallel withRentenmark
Succeeded by:
Polish złoty
Reason:annexation toPoland
Ratio:?
Preceded by:
Polish złoty
Reason:annexation toGermany
Ratio:1 Mark = 2 złote
Currency ofPolish areas annexed by Nazi Germany
1939 – 1945
Succeeded by:
Polish złoty
Reason:re-integration toPoland
Ratio:?
Preceded by:
Belgian franc
Reason:annexation toGermany
Ratio:1 Mark = 12.5 franc
Currency ofEupen-Malmedy
1940 – 1945
Note:In parallel withRentenmark
Succeeded by:
Belgian franc
Reason:re-integration to Belgium
Ratio:1 Mark = 12.5 franc
Preceded by:
Luxembourgish franc
Reason:annexation toGermany
Ratio:1 Mark = 10 Franc
Currency ofLuxembourg
1940 – 1945
Note:In parallel withRentenmark
Succeeded by:
Belgian franc
Luxembourgish franc

Reason:restoration of independence
Ratio:?
Preceded by:
French franc
Reason:annexation toGermany
Ratio:?
Currency ofAlsace-Lorraine
1940 – 1945
Note:In parallel withRentenmark
Succeeded by:
French franc
Reason:re-integration to France
Ratio:?
Preceded by:
Yugoslav dinar
Reason:annexation toGermany
Ratio:1 Mark = 20 dinars
Currency of northernSlovenia
1941 – 1945
Note:In parallel withRentenmark
Succeeded by:
Yugoslav dinar
Reason:re-integration toYugoslavia
Ratio:?
Preceded by:
Italian lira
Reason:annexation toGermany
Ratio:?
Currency of southernSlovenia
1943 – 1945
Note:In parallel withRentenmark
Succeeded by:
Yugoslav dinar
Reason:re-integration toYugoslavia
Ratio:?
Preceded by:
Soviet ruble
Reason:annexation toRomania
Ratio:?
Currency ofTransnistria
1941 – 1945
Succeeded by:
Soviet ruble
Reason:re-integration toSoviet Union
Ratio:?