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This company essentially created a large amount of Reichsmarks off the books, inflating the currency in secret. Payment was about to come due giving Hitler the option of shifting the German economy to export goods to pay the bills or going to war and paying the debts off from looting profits extracted from conquered states.
With the unification of Germany and Austria in , the Reichsmark replaced the Schilling in Austria. During the Second World War , Germany established fixed exchange rates between the Reichsmark and the currencies of the occupied and allied countries, often set so as to give the Germans economic benefits.
The rates were as follows:. In practice, massive inflation dating back to the latter stages of the war had rendered the Reichsmark nearly worthless.
For all intents and purposes, it was supplanted by a barter economy commonly, "cigarette currency". The currency reform under the direction of Ludwig Erhard is considered the beginning of the West German economic recovery; however, the secret plan to introduce the Deutsche Mark in the Trizone was formulated by economist Edward A.
Tenenbaum of the US military government , and was executed abruptly on 21 June Three days later, the new currency also replaced the Reichsmark in the three Western sectors of Berlin.
In a local currency the Saar Mark , later replaced with the Saar Franc was introduced in the Saar. In , coins were introduced in denominations of 1 , 2, 5, 10, and 50 Reichspfennig, and 1 and 3 mark not Reichsmark.
The 1 and 2 Reichspfennig were struck in bronze, and depicting a wheat sheaf. And the 5, 10, and 50 Reichspfennig were struck in aluminium-bronze and depicted wheat stocks crossed into a stylized pattern.
The two highest denominations were struck in. In , nickel 50 Reichspfennig coins were introduced along with regular-type 5 Reichsmark coins, followed by the 3 Reichsmark coin in 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 and 5 Reichsmark 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. The quality of the Reichsmark coins decreased more and more towards the end of World War II and misprints happened more frequently.
This led to an increase in counterfeiting of money. Production of silver 1 Reichsmark coins ended in In , nickel 1 Reichsmark coins were introduced, and new silver 2 and 5 Reichsmark coins were introduced which were smaller but struck in.
Between and , a number of commemorative 5 Reichsmark pieces would be issued. Production of the 3 Reichsmark coin ceased altogether. In , aluminium 50 Reichspfennig coins were introduced, initially for just the one year.
In , nickel 50 Reichspfennig coins were issued and continued to be produced up to , before reverting to aluminum. The eagle had two standard designs on most coin denominations, a soaring eagle and large swastika depicted on most earlier issues, and a more "aggressive" eagle with less prominent swastika which became predominant in the s.
During World War II, bronze and aluminium-bronze coins were replaced by zinc and aluminium, with the 2 Reichspfennig discontinued for potential of being too easily mistaken for the 10 Reichspfennig when being struck in the same metal.
The 1, 2, and 5 Reichsmark coins were no longer issued, replaced instead by banknotes. Aluminium 50 Reichspfennig coins were reintroduced to replace the nickel versions.
This time around they had a longer run, being produced from to Lower denominations were produced in zinc from onwards.
Due to their composition, these coins had poor durability and are hard to find in very good condition. The last production of coins bearing the swastika was in 1 , 5 , 10 , and 50 Reichspfennig and 1 and 10 Reichspfennig only.
These coins were issued with designs very similar to those minted in —45, with the exception that the swastika was removed from beneath the eagle on the reverse.
The zinc 10 Reichspfennig coin was minted by Nazi Germany between and during World War II , replacing the bronze-aluminum version, which had a distinct golden color.
Made entirely of zinc , the 10 Reichspfennig is an emergency issue type, similar to the zinc 1 and 5 Reichspfennigs , and the aluminum 50 Reichspfennig coins from the same period.
The first Reichsmark banknotes were introduced by the Reichsbank and state banks such as those of Bavaria , Saxony and Baden.
The first Reichsbank issue of came in denominations of 10, 20, 50, , and Reichsmark. This was followed by a second issue in the same denominations, dated between and A 20 Reichsmark note was introduced in , using a design taken from an unissued Austrian schilling banknote type.
Five Reichsmark notes were issued in Throughout this period, the Rentenbank also issued banknotes denominated in Rentenmark, mostly in low denominations.
In preparation for the occupation of Germany, the United States issued occupation banknotes dated , printed by the Forbes Lithograph Printing Company of Boston.
These were printed in similar colours with different sizes for groups of denominations. The Soviet Union demanded copies of the engraving plates, ink, and associated equipment in early , and on 14 April Henry Morgenthau and Harry Dexter White of the U.
Using a printing plant in occupied Leipzig , the Soviet authorities printed large runs of occupation marks. Since these were convertible to U.
In Rhineland-Palatinate issued 5 and 10 Pfennig notes with Geldschein on them. Coins and banknotes for circulation in the occupied territories during the war were issued by the Reichskreditkassen.
Holed, zinc coins in 5 and 10 Reichspfennig denominations were struck in and Banknotes were issued between and in denominations of 50 Reichspfennig, 1, 2, 5, 20, and 50 Reichsmark.
These served as legal tender alongside the currency of the occupied countries. The coins were originally planned in great numbers of million and million, Rpf 5 and 10 Rpf respectively.
The first embossing order, which was issued in April , was about 40 million 5 Rpf and million 10 Rpf. The total amount was divided between each of the seven German mints after the embossing key of The contract was stopped in August 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 5 A and D, and 10 A.
Special issues of Reichsmark currency were issued for use by the German Armed Forces from to This series was unifaced.
The second issue notes of 1, 5, 10, and 50 Reichsmark were equal in value to the ordinary German Reichsmark and were printed on both sides.
There were different AMCs for each liberated area of Europe. Various special issues of Reichsmark currency were issued for use in concentration and prisoner of war POW camps.
None were legal tender in Germany itself. The reform replaced the old money with the new Deutsche Mark at the rate of one new per ten old.
The result was the prices of German export products held steady, while profits and earnings from exports soared and were poured back into the economy.
In addition, the Marshall plan forced German companies, as well as those in all of Western Europe, to modernize their business practices, and take account of the wider market.
Marshall plan funding overcame bottlenecks in the surging economy caused by remaining controls which were removed in , and opened up a greatly expanded market for German exports.
Overnight, consumer goods appeared in the stores, because they could be sold for higher prices. Only after the wage-freeze was abandoned, Deutschmark and free-ranging prices were accepted by the population.
In the Soviet occupation zone of Germany later the German Democratic Republic , the East German mark also named "Deutsche Mark" from to and colloquially referred to as the Ostmark — literally Eastmark was introduced a few days afterwards in the form of Reichsmark and Rentenmark notes with adhesive stamps to stop the flooding in of Reichsmark and Rentenmark notes from the West.
In July , a completely new series of East German mark banknotes was issued. The Deutsche Mark earned a reputation as a strong store of value at times when other national currencies succumbed to periods of inflation.
In the s, opinion polls showed a majority of Germans opposed to the adoption of the euro; polls today show a significant number would prefer to return to the mark.
The population in the Saar Protectorate rejected in a referendum the proposal to turn it into a "European territory". Despite French pre-referendum claims that a "no" vote would mean that the Saar would remain a French protectorate it in fact resulted in the incorporation of the Saar into the Federal Republic of Germany on January 1, The new German member state of the Saarland maintained its currency, the Saar franc , which was in a currency union at par with the French franc.
The Deutsche Mark played an important role in the reunification of Germany. East German marks were exchanged for German marks at a rate of 1: The government of Germany and the Bundesbank were in major disagreement over the exchange rate between the East German mark and the German mark.
France and the United Kingdom were opposed to German reunification, and attempted to influence the Soviet Union to stop it. The policy was "hard" in relation to the policies of certain other central banks in Europe.
The "hard" and "soft" was in respect to the aims of inflation and political interference. From , the inscription Bundesrepublik Deutschland Federal Republic of Germany appeared on the coins.
These coins were issued in denominations of 1, 2, 5, and 10 pfennigs. The 1- and 2-pfennig coins were struck in bronze clad steel although during some years the 2 pfennigs was issued in solid bronze while 5 and 10 pfennigs were brass clad steel.
In , cupronickel pfennig and 1-mark coins were released, while a cupronickel 2 marks and a. Cupronickel replaced silver in the 5 marks in The 2- and 5-mark coins have often been used for commemorative themes, though typically only the generic design for the 5 marks is intended for circulation.
Commemorative silver mark coins have also been issued which have periodically found their way into circulation. Unlike other European countries, Germany retained the use of the smallest coins 1 and 2 pfennigs until adoption of the euro.
The weights and dimensions of the coins can be found in an FAQ of the Bundesbank. Unlike other countries such as Australia there was no attempt or proposal suggested for the withdrawal of the 1- and 2-pfennig coins.
Both coins were still in circulation in and supermarkets in particular still marked prices to the nearest pfennig.
This penchant for accuracy continues with the euro while Finland or the Netherlands for example, price to the nearest 5 cents with the 1-cent coin still encountered in Germany.
On 27 December , the German government enacted a law authorizing the Bundesbank to issue, in , a special. The coin had the exact design and dimensions of the circulating cupro-nickel DM 1 coin, with the exception of the inscription on the reverse, which read "Deutsche Bundesbank" instead of "Bundesrepublik Deutschland" , as the Bundesbank was the issuing authority in this case.
A total of one million gold 1-mark coins were minted , at each of the five mints and were sold beginning in mid through German coin dealers on behalf of the Bundesbank.
The issue price varied by dealer but averaged approximately United States dollars. German coins bear a mint mark, indicating where the coin was minted.
The mint mark A was also used for German mark coins minted in Berlin beginning in following the reunification of Germany. These mint marks have been continued on the German euro coins.
Between July 1, the currency union with East Germany and July 1, , East German coins in denominations up to 50 pfennigs continued to circulate as Deutsche Mark coins at their face value, owing to a temporary shortage of small coins.
These coins were legal tender only in the territory of the former East Germany. In colloquial German the pfennig coin was sometimes called a groschen cf.
Likewise, sechser sixer could refer to a coin of 5 pfennigs. Both colloquialisms refer to several pre currencies of the previously independent states notably Prussia , where a groschen was subdivided into 12 pfennigs, hence half a groschen into 6.
After , 12 old pfennigs would be converted into 10 pfennigs of the mark, hence pfennig coins inherited the "Groschen" name and 5-pfennig coins inherited the "sechser" name.
Both usages are only regional and may not be understood in areas where a Groschen coin did not exist before In particular, the usage of "sechser" is less widespread.
A reserve series BBk II was commissioned on July 1, , consisting of 10, 20, 50 and mark banknotes. The notes were printed between and in fear if the Eastern Bloc would start systematically counterfeiting the BBk I series of banknotes to cripple the economy, then they would quickly be replaced by emergency notes.
The design of German banknotes remained unchanged during the s, s and s. During this period, forgery technology made significant advances and so, in the late s, the Bundesbank decided to issue a new series of Deutsche Mark banknotes.
Famous national artists and scientists were chosen to be portrayed on the new banknotes. Male and female artists were chosen in equal numbers.
The reverses of the notes refer to the work of the person on the obverse. The new security features were: The reason for this gradual introduction was, that public should become familiar with one single denomination, before introducing a new one.
The last three denominations were rarely seen in circulation and were introduced in one step. Furthermore, the colours were changed slightly to hamper counterfeiting.
The German name of the currency is Deutsche Mark fem. In German, the adjective "deutsche" adjective for "German" in feminine singular nominative form is capitalized because it is part of a proper name, while the noun "Mark", like all German nouns, is always capitalized.
The English loanword "Deutschmark" has a slightly different spelling and one syllable fewer possibly due to the frequency of silent e in English , and a plural form in -s.
Like Deutsche Mark , D-Mark and Mark do not take the plural in German when used with numbers like all names of units , the singular being used to refer to any amount of money e.
The subdivision unit is spelled Pfennig masc. The official form is singular. Before the switch to the euro, the Deutsche Mark was the largest international reserve currency after the United States dollar.
The percental composition of currencies of official foreign exchange reserves from to From Wikipedia, the free encyclopedia.
For other uses, see DEM disambiguation. This article is about the Deutsche mark issued by the Federal Republic of Germany.
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