The Rentenmark (German:[ˈʁɛntn̩maʁk]ⓘ; RM) was a currency issued on 15 November 1923 to stop the hyperinflation of 1922 and 1923 in Weimar Germany, after the previously used "paper" Mark had become almost worthless.[1] It was subdivided into 100 Rentenpfennig and was replaced in 1924 by the Reichsmark.
United States dollar = RM 4.20, in turn 1,000,000,000,000ℳ = RM 1 (1 trillion short scale (US) or 1 billion long scale (UK pre-1974, Germany, much of Europe) = 1,000,000,000,000)
This infobox shows the latest status before this currency was rendered obsolete.
After the Occupation of the Ruhr in early 1923 by French and Belgian troops, referred to as the Ruhrkampf, the German government of Wilhelm Cuno reacted by announcing a policy of passive resistance. This caused the regional economy of the Ruhr, the industrial heartland of Germany, to almost stop. The occupation authorities reacted to strikes and sabotage with arrests and deportations. Those displaced and left without income by the Ruhrkampf and their families fell back on public income support. Tax revenues plunged as economic activity slowed. The government covered its need for funds mainly by printing money. As a result, inflation spiked and the Papiermark went into freefall on the currency market. Foreign currency reserves at the Reichsbank dwindled.[2]
As hyperinflation took hold, the cabinet of Cuno resigned in August 1923 and was replaced by the cabinet of Gustav Stresemann. After Stresemann reshuffled his cabinet in early October, Hans Luther became Minister of Finance.[2][3] Working with Hjalmar Schacht at the Reichsbank, Luther quickly came up with a stabilization plan for the currency which combined elements of a monetary reform by economist Karl Helfferich with ideas of Luther's predecessor in office Rudolf Hilferding. With the help of the emergency law (Ermächtigungsgesetz) of 13 October 1923 which gave the government the power to issue decrees on financial and economic matters, the new Rentenbank was established that same day, 15 October 1923.[3]
The newly created Rentenmark replaced the old Papiermark on 15 November. Because of the economic crisis in Germany after the First World War, there was no gold available to back the currency. Luther thus used Helfferich's idea of a currency backed by real goods. The new currency was backed by the land used for agriculture and business. This was mortgaged (Rente is a technical term for mortgage in German) to the tune of 3.2 billion Goldmarks, based on the 1913 wealth charge called Wehrbeitrag which had helped fund the German war effort from 1914 to 1918. Notes worth RM 3.2 billion were issued. The Rentenmark was introduced at a rate of one Rentenmark to equal one trillion (1012) old marks, with an exchange rate of one United States dollar to equal 4.2 Rentenmarks.[3]
The Act creating the Rentenmark backed the currency by means of twice yearly payments on property, due in April and October, payable for five years. Although the Rentenmark was not initially legal tender, it was accepted by the population and its value was relatively stable. The Act prohibited the recently privatised Reichsbank from continuing to discounting bills and the inflation of the Papiermark immediately stopped. The monetary policy spearheaded by Schacht at the Reichsbank and the fiscal policy of Finance Minister Hans Luther brought the period of hyperinflation in Germany to an end. The Reichsmark became the new legal tender on 30 August 1924, equal in value to the Rentenmark. This marked a return to a gold-backed currency in connection with the implementation of the Dawes Plan.[3] The Rentenbank continued to exist after 1924 and the notes and coins continued to circulate. The last Rentenmark notes were valid until 1948.
Coinsedit
Coins were issued dated 1923, 1924 and 1925 in denominations of 1 Rpf, 2 Rpf, 5 Rpf, 10 Rpf and 50 Rpf. Only small numbers of Rentenpfennig coins were produced in 1925. A few 1 Rpf coins were struck dated 1929. The 1 Rpf and 2 Rpf were minted in bronze, with the 5 Rpf, 10 Rpf, and 50 Rpf coins in aluminium-bronze. These coins had the same design features and motifs as coins of the Reichsmark from the Weimar and early Third Reich periods.
Banknotesedit
The first banknote of the East German Mark (1948), was a 1937 Rentenmark with a validation coupon stamp affixed.30 Januar 1937 - Banknotes of 1 and 2 Rentenmark, serial number with 8 digits
The first issue of banknotes was dated 1 November 1923 and was in denominations of RM 1, RM 2, RM 5, RM 10, RM 50, RM 100, RM 500 and RM 1000. Later issues of notes were RM 10 and RM 50 (1925), RM 5 (1926), RM 50 (1934) and RM 1 and RM 2 (1937).
^Scriba, Arnulf (6 August 2015). "Die Währungsreform 1923" [The Currency Reform 1923]. Deutsches Historisches Museum (in German). Retrieved 17 November 2023.
Act creating the Rentenbank Reichsgzetzblatt Teil I, 17 October 1923
GermanNotes.com (2005). German Paper Money 1871–1999. eBook from germannotes.com
Preceded by: German papiermark Ratio: 1 Rentenmark = 1,000,000,000,000 Papiermark, and 4.2 Rentenmark = US$1
Currency of Germany 15 November 1923 – 29 August 1924
Circulates in Germany 30 August 1924 – 1948 Note:Reichsmark was the legal tender
Succeeded by: East German mark Reason: reaction to the changeover in Trizone (later West Germany) Ratio: 1 Mark = 7 Rentenmark on the first 70 Rentenmark for private individuals, otherwise 1 Kuponmark = 10 Rentenmark
Succeeded by: Deutsche Mark Reason: intended to protect West Germany from the second wave of hyperinflation and stop the rampant barter and black market trade Ratio: 1 Deutsche Mark = 1 Rentenmark for first 600 RM, 1 Deutsche Mark = 10 Rentenmark thereafter, plus each person received 40 Deutsche Mark
External linksedit
Media related to Rentenmark at Wikimedia Commons
February 16, 2024
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This article needs additional citations for verification Please help improve this article by adding citations to reliable sources Unsourced material may be challenged and removed Find sources Rentenmark news newspapers books scholar JSTOR November 2018 Learn how and when to remove this template message The Rentenmark German ˈʁɛntn maʁk RM was a currency issued on 15 November 1923 to stop the hyperinflation of 1922 and 1923 in Weimar Germany after the previously used paper Mark had become almost worthless 1 It was subdivided into 100 Rentenpfennig and was replaced in 1924 by the Reichsmark RentenmarkRentenmark German One Rentenmark noteUnitPluralRentenmarkSymbolRM DenominationsSubunit 1 100RentenpfennigPlural RentenpfennigRentenpfennigSymbol RentenpfennigRpf BanknotesRM 1 RM 2 RM 5 RM 10 RM 50 RM 100 RM 500 RM 1 000Coins1 Rpf 2 Rpf 5 Rpf 10 Rpf 50 RpfDemographicsReplacedPapiermarkReplaced byReichsmarkUser s GermanyIssuanceCentral bankDeutsche RentenbankValuationPegged withUnited States dollar RM 4 20 in turn 1 000 000 000 000ℳ RM 1 1 trillion short scale US or 1 billion long scale UK pre 1974 Germany much of Europe 1 000 000 000 000 This infobox shows the latest status before this currency was rendered obsolete Contents 1 History 2 Coins 3 Banknotes 4 See also 5 References 6 External linksHistory editAfter the Occupation of the Ruhr in early 1923 by French and Belgian troops referred to as the Ruhrkampf the German government of Wilhelm Cuno reacted by announcing a policy of passive resistance This caused the regional economy of the Ruhr the industrial heartland of Germany to almost stop The occupation authorities reacted to strikes and sabotage with arrests and deportations Those displaced and left without income by the Ruhrkampf and their families fell back on public income support Tax revenues plunged as economic activity slowed The government covered its need for funds mainly by printing money As a result inflation spiked and the Papiermark went into freefall on the currency market Foreign currency reserves at the Reichsbank dwindled 2 As hyperinflation took hold the cabinet of Cuno resigned in August 1923 and was replaced by the cabinet of Gustav Stresemann After Stresemann reshuffled his cabinet in early October Hans Luther became Minister of Finance 2 3 Working with Hjalmar Schacht at the Reichsbank Luther quickly came up with a stabilization plan for the currency which combined elements of a monetary reform by economist Karl Helfferich with ideas of Luther s predecessor in office Rudolf Hilferding With the help of the emergency law Ermachtigungsgesetz of 13 October 1923 which gave the government the power to issue decrees on financial and economic matters the new Rentenbank was established that same day 15 October 1923 3 The newly created Rentenmark replaced the old Papiermark on 15 November Because of the economic crisis in Germany after the First World War there was no gold available to back the currency Luther thus used Helfferich s idea of a currency backed by real goods The new currency was backed by the land used for agriculture and business This was mortgaged Rente is a technical term for mortgage in German to the tune of 3 2 billion Goldmarks based on the 1913 wealth charge called Wehrbeitrag which had helped fund the German war effort from 1914 to 1918 Notes worth RM 3 2 billion were issued The Rentenmark was introduced at a rate of one Rentenmark to equal one trillion 1012 old marks with an exchange rate of one United States dollar to equal 4 2 Rentenmarks 3 The Act creating the Rentenmark backed the currency by means of twice yearly payments on property due in April and October payable for five years Although the Rentenmark was not initially legal tender it was accepted by the population and its value was relatively stable The Act prohibited the recently privatised Reichsbank from continuing to discounting bills and the inflation of the Papiermark immediately stopped The monetary policy spearheaded by Schacht at the Reichsbank and the fiscal policy of Finance Minister Hans Luther brought the period of hyperinflation in Germany to an end The Reichsmark became the new legal tender on 30 August 1924 equal in value to the Rentenmark This marked a return to a gold backed currency in connection with the implementation of the Dawes Plan 3 The Rentenbank continued to exist after 1924 and the notes and coins continued to circulate The last Rentenmark notes were valid until 1948 Coins editCoins were issued dated 1923 1924 and 1925 in denominations of 1 Rpf 2 Rpf 5 Rpf 10 Rpf and 50 Rpf Only small numbers of Rentenpfennig coins were produced in 1925 A few 1 Rpf coins were struck dated 1929 The 1 Rpf and 2 Rpf were minted in bronze with the 5 Rpf 10 Rpf and 50 Rpf coins in aluminium bronze These coins had the same design features and motifs as coins of the Reichsmark from the Weimar and early Third Reich periods Banknotes edit nbsp The first banknote of the East German Mark 1948 was a 1937 Rentenmark with a validation coupon stamp affixed nbsp 30 Januar 1937 Banknotes of 1 and 2 Rentenmark serial number with 8 digitsThe first issue of banknotes was dated 1 November 1923 and was in denominations of RM 1 RM 2 RM 5 RM 10 RM 50 RM 100 RM 500 and RM 1000 Later issues of notes were RM 10 and RM 50 1925 RM 5 1926 RM 50 1934 and RM 1 and RM 2 1937 See also edit nbsp Germany portal nbsp Money portal nbsp Numismatics portal1924 in GermanyReferences edit Scriba Arnulf 6 August 2015 Die Wahrungsreform 1923 The Currency Reform 1923 Deutsches Historisches Museum in German Retrieved 17 November 2023 a b Das Kabinett Cuno Einleitung German Bundesarchiv Retrieved 6 January 2015 a b c d Biografie Hans Luther in German Bayerische Nationalbibliothek Retrieved 19 January 2015 Krause Chester L Clifford Mishler 1991 Standard Catalog of World Coins 1801 1991 18th ed Krause Publications ISBN 0873411501 Pick Albert 1994 Standard Catalog of World Paper Money General Issues Colin R Bruce II and Neil Shafer editors 7th ed Krause Publications ISBN 0 87341 207 9 Act creating the Rentenbank Reichsgzetzblatt Teil I 17 October 1923 GermanNotes com 2005 German Paper Money 1871 1999 eBook from germannotes com Preceded by German papiermarkRatio 1 Rentenmark 1 000 000 000 000 Papiermark and 4 2 Rentenmark US 1 Currency of Germany 15 November 1923 29 August 1924 Circulates in Germany 30 August 1924 1948Note Reichsmark was the legal tender Succeeded by East German markReason reaction to the changeover in Trizone later West Germany Ratio 1 Mark 7 Rentenmark on the first 70 Rentenmark for private individuals otherwise 1 Kuponmark 10 RentenmarkSucceeded by Deutsche MarkReason intended to protect West Germany from the second wave of hyperinflation and stop the rampant barter and black market tradeRatio 1 Deutsche Mark 1 Rentenmark for first 600 RM 1 Deutsche Mark 10 Rentenmark thereafter plus each person received 40 Deutsche MarkExternal links edit nbsp Media related to Rentenmark at Wikimedia Commons Retrieved from https en wikipedia org w index php title Rentenmark amp oldid 1190588761, wikipedia, wiki, book, books, library,
