What is Germany Notgeld?
Notgeld is a form of emergency currency created by small cities, towns, and municipalities under German control during the period following the First World War. In the context of post-war currency shortages, these cities supplemented what the government was unable to provide.
What are notgeld coins?
Notgeld (German for “emergency money” or “necessity money”) refers to money issued by an institution in a time of economic or political crisis. The issuing institution is usually one without official sanction from the central government.
Why did the value of German mark collapse?
Germany had to pay war reparation after its defeat in the First World War. But Germany refused to pay the reparation and France occupied Ruhr to claim Germany’s coal. In retaliation Germany printed paper currency recklessly. As a result, the value of German mark collapsed and prices of goods soared.
How much did a loaf of bread cost in 1923 Germany?
Prices ran out of control, for example a loaf of bread, which cost 250 marks in January 1923, had risen to 200,000 million marks in November 1923. By autumn 1923 it cost more to print a note than the note was worth.
When did stresemann became chancellor?
From 1920 until his death Stresemann was a Reichstag deputy and chairman of the German People’s Party, and in August 1923 he became chancellor of the Reich at the head of a “Great Coalition,” composed of representatives of the Social Democrats, the Centre, and the German Democrats, as well as of his People’s Party.
Why did Germany introduce the Rentenmark?
The aim of the Rentenmark was to replace the old Reichsmark which had become worthless due to hyperinflation. The Rentenmark, introduced in November 1923, was supported by businesses and the German people because the new currency was tied to the value of gold which meant that it would hold its value.
Why did Germany print so much money?
The immediate consequences of the occupation were not good for the Weimar government – they decided to print more money to pay the workers in the region, contributing to hyperinflation. A general strike (when all the workers in the country stopped work) was called, and political instability was rife.