TRIVIA: High Denominat Coin!

Ever see the highest denomination coin ever issued by Germany?

In 1914 Germany's post war reparations forced inflation to take a strong hold on its economy and by 1923 hyperinflation sent prices soaring on every imaginal product, commodity, appliance, beverage, plus such necessities as rent, transportation fees, petroleum products and food items. Prices increased hourly and the The Weimar Republic couldn't print currency fast enough to meet the demand. The great minds of the Republic reasoned, "it costs just as much to print a million Mark bill as it does to print a 1 Mark Bill." This kind of thinking spread to the minting of coinage.

To help you grasp the immensity of the problem here are a few examples:

In 1914 a cupro-nicklel 10 Pfennig coin would buy 1/2 dozen eggs or 2 1/2 pounds of potatoes. A loaf of bread cost 13 Pfennig. 100 Pfennig = 1 Mark.

1916 saw more inflation - 10 Pfennig was composed of iron and would only purchase 2 eggs or 1 1/2 pounds of potatoes.

1918 experienced even more inflation - 50 iron Pfennig or a silver 1/2 Mark coin could only buy 1 dozen eggs, 5 pounds of potatoes or 1/4 pound of meat. Bread uncreased to 22 Pfennig a loaf.

1921 Germany issued Aluminum 50 Pennig coins of which each had the purchasing power to buy 2 eggs, 1/8 pound of sugar or 1/4 pound of potatoes. Bread cost 1 Mark 35 Pennig per loaf.

In January, 1923 the Weimark Republic of Germany minted an aluminum 500 Mark coin which could be used buy 1 dozen eggs, or a pound of flour. A loaf of bread cost 700 Mark.

By the first of May, 1923 (4 months later) the price of bread rose to 1200 Mark.

By July 25, 1923 (54 days later) bread cost 100,000 Mark a loaf and 10,000.000 Marks could only purchase 12 pounds of meat or 7 pounds of butter.

38 days later (September 2, 1923) it cost 10,000,000 Mark to obtain about 1/2 pound of meat, 4 eggs or 2 pounds potatoes. The price of bread rose to 2,000,000 Mark a loaf.

Here's a photo of Germany's 1 Billion Mark Coin dated 1923 (photo courtesy of Ron Guth, C.P.A.

Before you look at it, let me tell you what it could buy on October 29, 1923 (48 days later) - 3/4 lb. meat, 3 eggs, or 1/6 lb. of butter. Bread cost 670,000,000 Mark. Here's that photo:

http://www.germancoins.com/world.htm


Thought you should know.

Was this interesting?

Clinker

 

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I have some hyper-inflation notes from Germany from that time, but didn't know that they produced such high coinage as well.

Thanks Clinker.

 

I would have to say yes!! Know all,s i have to do is understand it.....LOL

 

I didn't think they had a Billion Mark coin, but after looking at picture I realized I had one. The part were a 50 pennfig iron coin was the same as a Silver half Mark was a little distriburing, Would of thought the silver had higher purchasing power.

 

Very interesting. I've read about this inflationary time before but find it difficult to imagine participating in such an economy.

 

Yes, those hyperinflation years must have been hard. And this piece is indeed a good symbol, but it was not issued by Germany, nor was it ever in use ...

First let us keep in mind that what you see here is a "1 Billion" piece. However, a German Billion is an English (at least American) trillion. So what you see there is a 1 Trillion Mark "coin".

Also, that piece was issued by the Prussian province of Westphalia (the issuing authority, so to say, was the Landesbank Westfalen). So, like most notgeld, it was regional.

And then, well, the Westphalian pieces were primarily fundraisers. The Jaeger catalog calls them medal-style commems, not issued for circulation but in order to get funds for social/charity purposes. This 1 "Billion" piece was even issued after the inflation, and then sold at a price of 2.50 RM ...

Christian

 

To chrisild:

Thanks for your input, but no matter what "relative" amounts are it is still a 1 Billion Mark coin just as the 50 pfennig coin is a 50 pfennig coin, a 1 Mark is still a 1 Mark coin and a 10 Mark coin is a 10 Mark coin.


Though the English, USA and Canadian equivalent is "trillion" the denomination in Germany is as written on the coin "billion." However, I could have presented it this way: 1 Billion Mark (1 Trillion Mark Eng., USA, Can. plus the other 41 countries eqivalencies).

 

Hi Art:

If President Obama keeps printing "fiat Dollars" and doesn't freeze wholesale and retail prices on all goods, food, rent, and services we could experience hyperinflation here in the USA.

That happened in Zimbabwe. In fact, it is so bad Zimbabwe stopped printing paper money and stopped minting coins. It has declared all Zimbabwe money non legal tender. The only legal tender money (paper amd metal) in Zimbabwe are the USA, United Kingdom, Canada Currency and the European Union Euros.


Let's hope that doesn't happen here (I used to pay a nickel for a colan and ten cents for a loaf of bread).

Clinker

 

Canada has one that weighs 100 kilos.....over 220 lbs., and is made of gold. $1,000,000.00 face value. I'm gonna need some bigger albums !

http://uk.reuters.com/article/idUKN0328796820070503

 

Yes I've seen them. They come in two different varieties one 60 mm in diameter and one either 61 or 62 mm (Forget the exact size). I have one of each.


Until Zimbabwe the 1923 hyperinflation of Germany was I believe the worst the world had ever seen. But in ZImbabwe during the twelve months before they gave up and just made the foreign currencies legal tender, they had revalued their currency three times each time chopping off anywhere from ten to thirteen zeros. In other words if they hadn't done the revaluations, what could be purchased for one Zimbabwe dollar twelve months earlier, would have taken 1,000,000,000,000,000,000,000,000,000,000 Zimbabwe dollars just before they gave up printing them. I think that is about a 27% per day compounded interest rate.

 

Hmm, what about Hungary? They had a bad hyper-inflation phase at the end of and shortly after WW2. http://en.wikipedia.org/wiki/Hungarian_pengő#The_end_of_the_peng.C5.91 From that article: "on 1 August 1946, the forint was introduced at a rate of 400 000 000 000 000 000 000 000 000 000 (...) pengő". However, neither Hungary nor Zimbabwe issued coins with such high values ...

Christian

 

Through the years since money commenced many countries experienced hyperinflation including Argentina, Bulgaria, China, and others , but the worst came about in 2008 and 2009 (Zimbabwe).


Yes Hungary was the worst after WWI and WWII. In Hungary hyperinflastion was so bad people used paper currency as fuel for their heating stoves because it was cheaper to burn banknotes than it was to buy wood.

A student stopped in a cafe for a cup of coffee which was listed on the menu at 12,000 Pengos. The student finishewd the coffee and decided he had tiome to consume another one before the school opened fpr classes. After drinking the second cup of coffee he went to the cashier top pay and was startled to discover his bill was 27,000 Pengos. The cashier explained that after he was served the first coffee, the price of a cup of coffee had increased to 15,000 Pengos. It was further noted, that if he had ordered both cups of coffee earlier, it would hace cost him only 24,000 Pengos (12,000 P each).

Clinker

 

I have a 100 Trillion Dollar note from Zimbabwe in my collection.....it is quite the conversation piece.

 

So whats that worth in USD??

 

not much. lol

 

If I recall correctly, when they were introduced, they were worth about $35 US, and by the time that they were phased out, they were worth a tiny fraction of a cent.

 

I was just talking about this great post again

 

This OP reminded me that I am a millionaire too!!!

But in reality I too like many fear that with in my life time I will have to live through hyper inflation here in my country.

 

It's a good thing I have almost 5,000 CT credits, so that if hyper inflation ever does come to the U.S. I will still be able to buy some Bread, Butter and a couple eggs
So how many CT Credits does it take to buy a loaf of bread?

 

Hi Conder101...

Thanks for the addendum and your thoughts.

Clinker