When the German economy fell through the floor

This is from my wife's other grandfather. When the economy crashed in the early 20's the German government were forced to issue promisory notes so people could eat etc. The inflation was so high that these notes were the norm. This one is for
20,000,000 Reichsmarks!!!!!!!!!!!!

 

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So many zeros in these banknotes. The inflation is crazy.

 

Along those same lines, though it's only a million Marks, I've had the note below for decades now and I've always wondered if it's genuine. Does anyone happen to know? The back is blank.


I've seen at least one historic photo of people using notes like these for wallpaper to make a point. Nasty times.

 

Looks genuine to me, @ewomack. I think if someone wants to fake these notes, they would copy the 20 million, or the 200 million notes.

I heard that notes with one side blank are for actual daily transactions. Those with fancy designs on both sides are for collectors.

 

Some of the note amounts are quite amazing. Here is one I got recently.
100 milliarden marks, which is equal to 100 billion!

Although just a notgeld, not exactly a banknote, it is interesting to see they put such a huge amount on a note.

 

Nice and it has wonderful history.

 

I have every note (official) from the hyperinflation. The reason why they only had one side printed was that they couldn't produce them fast enough. Cost and time saver. They would get finished with the 500 mils and they were already small change at best.

 

When a Goldmark worth 25 c. (US) cost up to 4 trillion marks in Reichsbank notes...
They needed 10 Milliarden mark notes for small change.
Sort of "paper coins"...
Some Italian vendors call "miniassegni"...
(from the 1975-78 Italian coin shortage)..."coins".
Let us not speak of plastic "coins"!

 

This is my largest bill

 

It should be noted that Billionen means Trillion in German so that is a 20 trillion note issued by the German National Railway (Deutsche Reichbahn).

 

It should also be noted that another problem was privately issued money further diluting the economy. With their measures to reset the economy they made private issued money illegal.

 

I found this book about the Weimar hyperinflation to be interesting

 

Inflation exceeded the ability to print enough banknotes!
The 'money supply' couldn't keep up.

The Reichsbank had to call upon private printing works for the production of banknotes, in 1923 were 30 paper factories and 133 printing works busy with their production. The number of printing presses (1723 running day and night in autumn 1923) could be still increased, but the capacities for the special paper for banknotes could not keep up with the demand. The Reichsbank therefore welcomed and in many cases supported the issue of Notgeld (emergency money) by municipalities, districts, provinces and private enterprises. It was estimated, that at the end of 1922 there were about 20 billion in circulation - as opposed to 1280 billion of official money. By the end of 1923 there were 400 to 500 billion of Notgeld in value of about 500 million goldmark, so about the same amount as the official banknotes. There was also "value-stable" money in the same amount. The Notgeld was not only used to assist the Reichsbank, but many produced it to great profit.

https://wiki.mises.org/wiki/Inflation_in_the_Weimar_Republic
"Inflation in the Weimar Republic"

 

I'm wondering if anyone has a billion or trillion mark 1923 coin they would like photographed for free? I'd like to capture images of one for an upcoming book but I don't know anyone with one, and I can't seem to find one to buy online that isn't outrageously priced.

 

Just a note. The post war government was still the German Reich officially, and unofficially the German Republic. The term Weimar Republic was a derisive name given to that government by Adolf Hitler.

 

Best I got for ya Denis

 

@Denis Richard

I have still to look for a coin in my Collection for your Book cover…Just wait another day.

 

Thank you very much and happy new year!

 

Nice coin. Interestingly, and indicative of the rapidly deepening crisis, this one has the month it was issued on it.

 

That‘s the corresponding coin……although a smaller denomination.