German Reichsmark

German Reichsmark
Reichsbank, photograph by Turkmenistan · Public domain · source
Name	Reichsmark
Local name	Reichsmark
Local name lang	de
Used banknotes	1, 2, 5, 10, 20, 50, 100, 1000
Used coins	1, 2, 5, 10, 50 Reichspfennig
Issuing authority	Reichsbank
Date of introduction	1924
Date of withdrawal	1948
Plural	Reichsmark

German Reichsmark

The Reichsmark was the official currency of the German state introduced in 1924 and used through the era of the Weimar Republic, the Nazi regime, and the Third Reich until its replacement in the aftermath of World War II. It was issued by the Reichsbank and operated alongside German coinage traditions influenced by the Gold standard aftermath, the Versailles Treaty reparations debates, and recurrent monetary crises such as the German hyperinflation of 1923. The currency played central roles in domestic fiscal policy, international transactions involving the League of Nations, bilateral accords with states like Austria and Poland, and wartime economic arrangements with occupied territories.

History

Introduced under the Dawes Plan framework, the Reichsmark replaced the Papiermark to stabilize Germany after the Occupation of the Ruhr and hyperinflation episodes linked to the Kapp Putsch and political unrest involving figures such as Gustav Stresemann and institutions including the Reichstag. The Reichsbank under governors like Hjalmar Schacht administered monetary reforms coordinating with international financiers and central banks such as the Bank of England and Federal Reserve System through liaison with the Inter-Allied Reparations Commission. During the 1930s the currency became integrated with economic policies of the Nazi Party leadership, including rearmament programs driven by ministries under Hermann Göring and the Four Year Plan. Wartime exigencies tied the Reichsmark to occupation policies in regions like France, Poland, Norway, and the Soviet Union following invasions orchestrated in campaigns involving commanders like Erwin Rommel and leaders such as Adolf Hitler.

Design and denominations

Coinage and banknote design reflected influences from artists, mints, and state symbolism linked to institutions like the Reichsmarine and the Wehrmacht. Coins denominated in Reichspfennig and small-mark units displayed motifs referenced by cultural bodies including the Prussian State Mint and featured imagery echoing the German Eagle and industrial iconography associated with firms interacting with ministries such as the Reich Ministry of Economics. Banknotes issued by the Reichsbanknote series included denominations of 1, 2, 5, 10, 20, 50, 100, and 1000 Reichsmark, incorporating anti-counterfeiting elements developed with printing works like the Reichsdruckerei and designers influenced by movements such as Neue Sachlichkeit. Special-issue notes and emergency issues for occupied territories bore overprints or distinct designs used in regions administered by authorities including the Reichskommissariat Norwegen and administration offices in the General Government.

Monetary policy and legal status

The Reichsbank operated under legal frameworks enacted in statutes debated in the Reichstag and influenced by figures such as Hjalmar Schacht and later overseen by Reich authorities including the Reich Ministry of Finance. Currency convertibility, reserve requirements, and links to gold and foreign exchange were subjects of negotiation with institutions like the Bank for International Settlements and bilateral parities with currencies such as the British pound sterling and the United States dollar. Laws governing tender status and enforcement involved courts including the Reichsgericht and administrative decrees issued by cabinets in which ministers like Wilhelm Frick participated. Wartime measures expanded fiscal powers under emergency decrees tied to the Enabling Act of 1933 and financial instruments used to fund projects such as those under the Autarky initiatives and procurement by industrial conglomerates like Krupp and Thyssen.

Circulation and usage during WWII

As German forces occupied large parts of Europe, the Reichsmark circulated alongside or supplanted local currencies in regions including France, Belgium, Czechoslovakia, Greece, and Yugoslavia. Occupation authorities issued occupation marks, coupons, and overprinted banknotes managed by agencies such as the Reichskommissariat Ostland and military administrations coordinated with the Wehrmacht High Command. Wartime requisitions, forced labor transfers involving entities like the Organisation Todt, and plunder policies affected monetary flows and black-market exchanges involving silver and gold mobilized by collectors and firms such as Degussa. Currency controls, exchange restrictions, and barter arrangements featured in agreements with puppet regimes including Vichy France and satellite states such as the Protectorate of Bohemia and Moravia and the Independent State of Croatia.

Postwar replacement and legacy

After Germany's defeat in World War II, the Reichsmark ceased to be effective as Allied authorities including the United States Army, the Soviet Union, the United Kingdom, and the French Fourth Republic administrations instituted currency reforms and occupation currencies; the Allied Military Currency and later the Deutsche Mark in the western zones, and monetary reforms in the Soviet occupation zone led to the Mark der DDR. Monetary conferences involving officials from the United States Department of the Treasury, the London Conference, and planners influenced by economists such as John Maynard Keynes shaped postwar arrangements. Surviving Reichsmark notes and coins became collectors' items studied by numismatists at institutions like the British Museum and archives in the Bundesbank, and debates on restitution, reparations under treaties like the Potsdam Agreement, and economic legacies remain subjects in scholarship engaging historians of Germany, European integration, and postwar reconstruction.

Category:Currencies of Germany