Notgeld is the German word for "emergency money". Although not a German invention the word is
now well known and used due to the large amount of this money being issued in Germany in the
early 20th century.
Notgeld existed well before paper money was introduced. It was mainly used during the times of
war and crisis. When a town was besieged it was cut of the money supply and frequently invented
some money to be used inside the town walls. In Germany Notgeld was used for instance in the
towns of Mansfeld in Thuringia (1622), Kolberg (1807) - besieged by the French Napoleonic army -
and Erfurt (1813) – in French occupation besieged by the Prussian army.
Non-German issues of Notgeld are known from the Baltic region of Russia (from 1813). During the
Civil War in the USA (1861-1865) many private banks issued Notgeld - especially in the Confederated
South. In France Notgeld was issued also during the war against Germany in 1870/71.
What is Notgeld?
Money is defined as an agreement within a community, to use something as a medium of exchange,
which acts as an intermediary market good, which can be traded and exchanged for other goods. As
such the term "emergency money" is not without problem, as any physical representation of money
can be as good as the other.
Notgeld was given out through times of emergency. The main criterion is that it replaced
the legal tender that was normally used. Notgeld was mostly valid as a means of payment only for
a limited period and in a specific region. It was issued on behalf of the
Central bank (legally)
or outside of legislation by private banks, firms, local authorities (towns, counties etc.),
clubs or other institutions.
The right to issue legal tender remains with the central banks, which control the money supply
within their area of responsibility. By law only these institutions were allowed to issue "banknotes"
(German: Banknote). Therefore on Notgeld this word can never be found. Instead the words "Wertschein"
(English: Bill of Value), "Notgeld" or "Ersatzschein" (English: Replacement Bill) can frequently be
found on German emergency money.
Notgeld has been issued in Germany during different times and in different forms. The main periods
are
Notgeld from World War 1 and following years (1914 – 1922)
and Notgeld from the Inflation (1922-1923). It was sometimes
printed on materials other than paper.
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