The Papiermark (; 'paper mark') was a derisive term for the Mark (sign: â³ï¸Â) after it went off the gold standard, and most specifically with the era of hyperinflation in Germany of 1922 and 1923. Formally, the same German mark was used from 1871 to 1923. Like many countries, Germany departed the gold standard due to the outbreak of World War I, and stopped issuing gold coins backed in marks in August 1914. Precious metals rapidly disappeared from circulation, and inflation occurred as paper money was used to cover war debts in 1914 to 1918. Still, the papiermark is more associated with the early Weimar Republic era, when inflation grew out of control. By the time the mark was retired from circulation and renominated in December 1923, banknotes had amounts in the billions and trillions of marks by face value.
From 1914, the value of the mark fell. The rate of inflation rose following the end of World War I and reached its highest point in October 1923. The currency stabilized in November 1923 after the announcement of the creation of the Rentenmark, although the Rentenmark did not come into circulation until 1924. When it did, it replaced the Papiermark at the rate of 1-trillion (10<sup>12</sup>)-â³︠to RM1. On 30 August 1924 the Rentenmark was replaced by the Reichsmark.
In addition to the issues of the government, emergency issues of both tokens and paper money, known as Kriegsgeld (war money) and Notgeld (emergency money), were produced by local authorities.
The Papiermark was also used in the Free City of Danzig until it was replaced by the Danzig Gulden in late 1923. Several coins and emergency issues in Papiermark were issued by the free city.
During the war, cheaper metals were introduced for coins, including aluminium, zinc and iron, although silver â³︠pieces continued in production until 1919. Aluminium 1â° were produced until 1918 and the 2â° until 1916. Whilst iron 5â°, both iron and zinc 10â°, and aluminium 50â° coins were issued until 1922. Aluminium 3â³︠were issued in 1922 and 1923, and aluminium 200â³︠and 500â³︠were issued in 1923. The quality of many of these coins varied from decent to poor.
During this period, many provinces and cities also had their own corresponding coin and note issues, referred to as Notgeld currency. This came about often due to a shortage of exchangeable tender in one region or another during the war and hyperinflation periods. Some of the most memorable of these to be issued during this period came from Westphalia and featured the highest face value denominations on a coin ever, eventually reaching 1-billion-â³ï¸Â.
In 1914, the State Loan Office began issuing paper money known as Darlehnskassenschein (loan fund notes). These circulated alongside the issues of the Reichsbank. Most were 1â³︠and 2â³︠notes but there were also 5â³ï¸Â, 20â³ï¸Â, 50â³︠and 100â³︠notes.
Between 1914 and the end of 1923 the Papiermark's rate of exchange against the U.S. dollar plummeted from 4.2â³︠= US$1 to 4.2-trillionâ³︠= US$1. The price of one gold mark ( mg of pure gold) in German paper currency at the end of 1918 was 2â³ï¸Â, but by the end of 1919 a gold mark cost 10â³ï¸Â. This inflation worsened between 1920 and 1922, and the cost of a gold mark (or conversely, the depreciation of the paper mark) rose from 15â³︠to 1,282â³ï¸Â. In 1923 the value of the paper mark had its worst decline. By July, the cost of a gold mark had risen to 101,112â³ï¸Â, and in September was already at 13-million-â³ï¸Â. On 30 Nov 1923 it cost 1-trillion-â³︠to buy a single gold mark.
In October 1923, Germany experienced a 29,500% hyperinflation (roughly 21% interest per day). Historically, this one-month inflation rate has only been exceeded three times: Yugoslavia, 313,000,000% (64.6% per day, January 1994); Zimbabwe, 79.6 billion% (98% per day, November 2008); and Hungary, 41.9 quadrillion% (207% per day, July 1946).
On 15 November 1923 the Papiermark was replaced by the Rentenmark at RM4.2 Rentenmark = US$1, or 1 trillion-â³︠= RM1 (exchangeable through July 1925).
During the hyperinflation, ever higher denominations of banknotes were issued by the Reichsbank and other institutions (notably the Reichsbahn railway company). The Papiermark was produced and circulated in enormously large quantities. Before the war, the highest denomination was 1,000â³ï¸Â, equivalent to approximately ã48 18s sterling or US$238.09. In early 1922, 10,000â³︠notes were introduced, followed by 100,000â³︠and 1-million-â³︠notes in February 1923. July 1923 saw notes up to 50-million-â³ï¸Â, with 10-milliard (10<sup>10</sup>)-â³︠notes introduced in September. The hyperinflation peaked in October 1923 and banknote denominations rose to 100-trillion (10<sup>14</sup>)-â³ï¸Â. At the end of the hyperinflation, these notes were worth approximately ã5 4s sterling or US$23.81.
The Danziger Privat Actien-Bank (opened 1856) was the first bank established in Danzig. They issued two series of notes denominated in thalers (1857 and 1862âÂÂ73) prior to issuing the mark (1875, 1882, 1887). These mark issues are extremely rare. The Ostbank fur Handel and Gewerbe opened 16 March 1857, and by 1911 two additional banks (the Imperial Bank of Germany and the Norddeutsche Credit-Anstalt) were in operation.
The Papiermark was issued by Danzig from 1914 to 1923. Five series were issued during World War I by the City Council (1914, 1916, 1918 first and second issue, and 1919). Denominations ranged from 10â° to 20â³ï¸Â. The Free City of Danzig municipal senate issued an additional four post-World War I series of notes (1922, 1923 First issue, 1923 Provisional issue, and 1923 Inflation issue). The 1922 issue (31 October 1922) was denominated in 100â³ï¸Â, 500â³ï¸Â, and 1,000â³︠notes. The denominations for the 1923 issue were 1,000â³︠(15 March 1923), and 10,000â³︠and 50,000â³︠notes (20 March 1923). The 1923 provisional issue reused earlier notes with a large red stamp indicating the new (and higher) denominations of 1 million-â³︠(8 August 1923) and 5 million-â³︠(15 October 1923) mark. The last series of Danzig mark was the 1923 inflation issue of 1 million-â³︠(8 August 1923), 10 million-â³︠(31 August 1923), 100 million-â³︠(22 September 1923), 500 million-â³︠(26 September 1923), 5 billion-â³︠and 10 billion-â³︠notes (11 October 1923). The Danzig mark was replaced by the Danzig gulden, first issued by the Danzig Central Finance Department on 22 October 1923.
In German, ' is 1,000,000,000, or one thousand million, while ' is 1,000,000,000,000, or one million million.