Reichsmark

Reichsmark
Reichsbank, photograph by Turkmenistan · Public domain · source
Name	Reichsmark
Image title	A 100 Reichsmark banknote from 1929
Using countries	Weimar Republic, Nazi Germany, Occupied territories during World War II
Subunit ratio 1	1/100
Subunit name 1	Reichspfennig
Issued by	Reichsbank
Replaced	Papiermark
Date of introduction	1924
Date of withdrawal	1948
Replaced by	Deutsche Mark, East German mark, Austrian schilling, Polish złoty (in annexed territories)

Reichsmark. The Reichsmark was the official currency of Germany from 1924 until 1948, serving through the final years of the Weimar Republic and the entirety of Nazi Germany. Introduced to replace the hyperinflated Papiermark, it was initially stabilized under the Dawes Plan and managed by the Reichsbank. The currency's history is deeply intertwined with Adolf Hitler's economic policies, the financing of World War II, and its eventual collapse in the post-war period, leading to replacement by the Deutsche Mark in the western occupation zones.

History

The Reichsmark was introduced by the Currency Act of 1924, a direct legislative response to the catastrophic hyperinflation in the Weimar Republic that had rendered the previous Papiermark virtually worthless. This reform was a cornerstone of the Stresemann era's stabilization efforts, closely linked to international agreements like the Dawes Plan. The new currency was placed under the authority of the Reichsbank, initially maintaining a gold standard parity with the pre-war Goldmark. Following the Machtergreifung in 1933, control of the Reichsbank was gradually aligned with the goals of the Nazi Party, with figures like Hjalmar Schacht and later Walther Funk overseeing monetary policy aimed at rearmament and autarky, fundamentally altering the currency's role within the German economy.

Design and features

Reichsmark banknotes and coins featured a mix of allegorical figures and, increasingly after 1933, symbols of Nazi Germany. Early issues from the Weimar Republic often depicted traditional German imagery, such as the Bamberger Reiter. Under the Nazi regime, designs propagated state ideology, prominently featuring the Reichsadler holding a swastika, portraits of historical figures like Albrecht Dürer, and imagery glorifying labor and the military. Coins, minted from denominations of 1 Reichspfennig to 5 Reichsmark, were struck in metals like aluminum, zinc, and silver, with wartime issues, known as Kriegsmetall, utilizing inferior metals such as zinc and iron. The Allied Control Council later demonetized all currency bearing Nazi symbolism.

Hyperinflation and stabilization

The Reichsmark's creation was a direct consequence of the hyperinflation that peaked in 1923, during which the Papiermark saw exchange rates reach trillions to the United States dollar. This crisis was fueled by World War I reparations, the Occupation of the Ruhr, and the financing of deficits through the printing press. The stabilization, engineered by Hjalmar Schacht as Reichsbank president, involved introducing the Rentenmark as a temporary transitional currency backed by mortgage claims on German land and industry. The subsequent permanent introduction of the Reichsmark, backed by gold and foreign exchange reserves under the Dawes Plan, successfully restored domestic and international confidence in the German currency for nearly a decade.

World War II and aftermath

During World War II, the Reichsmark became a key instrument of Nazi economic policy and exploitation. It was imposed on occupied territories such as Poland, France, and the Protectorate of Bohemia and Moravia, often at artificially favorable exchange rates to facilitate the plunder of resources. The Reichsbank financed the war effort through methods like the use of Mefo bills, creating hidden inflation. Following German defeat, the currency became virtually worthless due to excessive money printing, a collapsed economy, and a thriving black market. In 1948, a currency reform in the Trizone led by Ludwig Erhard introduced the Deutsche Mark, invalidating the old Reichsmark, while the Soviet occupation zone introduced the East German mark.

Collectibility and legacy

Reichsmark notes and coins are collected worldwide, with values varying significantly based on condition, rarity, and historical context. Items from the hyperinflation period of the early 1920s, emergency issue Notgeld, and high-denomination notes from the Weimar Republic are particularly sought after. Conversely, standard circulation currency from the Nazi era is generally common, though notes with low serial numbers, special issues for concentration camps like Theresienstadt, or those used in occupied territories command higher interest. The Reichsmark's legacy endures as a stark case study in monetary stability, the politicization of currency, and the economic mechanisms underpinning both recovery and total war, topics extensively analyzed by economists such as John Maynard Keynes in works like The Economic Consequences of the Peace.

Category:Currencies of Germany Category:Modern obsolete currencies Category:Weimar Republic Category:Nazi Germany