When the new Rentenmark was introduced in 1923, a period of
stability evolved. Now coins were minted again to represent the new Rentenpfennig. The following six
years were called the Roaring Twenties. The situation of the German people improved during
these years together with those in other industrial countries.
Prosperity in the 1920's
The wealth however did not reach its pre-war levels. Most of the people that had become very poor and
deprived during
Inflation still had to struggle. The political
situation was not stable either. Governments came and went within months.
After the successful introduction of the Rentenmark in
October 1924 the Reichsmark was issued. The rate to the Rentenmark was at parity. The new currency remained
the official German currency until
1948. With the new currency again silver coins were issued from 1925 on.
Poverty in the 1930's
On 25.10.1929 the "Black Friday" on Wall Street marked the start ofa new economic crisis. It
would last till 1933 and become the worst economic crisis in the 20th
century. This crisis had an outrageous effect on the whole world. Economic output decreased
significantly around the globe. The US economy in 1932 was about 54% below its 1929 level.
In Germany the effect was disastrous. The economy still weak from the war and inflation years had to shoulder
outstanding reparation payments yet. External support for the German economy stopped. The crisis hit
Germany badly. Unemployment rose from 1 Million in 1928 to 6 Million in 1932. Unofficial sources quoted
even higher figures. The currency now deflated. Deprivation became common.
The desperate situation caused some very unconventional experiments to mitigate the economic crisis. One of these
experiments was carried out in Austria, where the town of
Wörgl issued and used Schwundgeld with some success in 1932/33.
Together with the already unstable political situation this caused a climate for radical political
parties. On the left wing the communists gained. On the right wing many national parties evolved.
Eventually in 1933 after many turmoils the National Socialist Party under Adolf Hitler took over the
government.
The Nazis and World War 2
The money now started to carry the symbols of the Nazis.
During World War 2 the coins were minted with less and less valuable material. In the occupied
regions new money was issued, different from the Reichsmark issued
in the home country. The German army "Wehrmacht" used its own money in these areas - the
Verrechnungsschein, while the civilians used their local
money together with newly issued occupied territory money.
With the fortune in the war turning against the Germans, the economy once again tumbled.
In some regions that were not freed by the advancing allies Notgeld was introduced again.
After Germany's defeat the currency stayed valid initially. However, the allied forces also introduce new
notes and coins, which did not carry the symbols of the nazi regime. The money could not buy a lot.
Goods and foodstuff were not available due to the damages of the war. Money therefore became worthless.
After the war a new currency evolved: cigarettes. On the black market cigarettes could buy everything.
Please have a look at some sample banknotes from the Weimar Republic or
banknotes from World War 2.
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