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| Mark (German) | |||||
|---|---|---|---|---|---|
| |||||
| Unit | |||||
| Plural | Mark | ||||
| Symbol | ℳ︁ | ||||
| Denominations | |||||
| Subunit | |||||
| 1⁄100 | Pfennig | ||||
| Plural | |||||
| Pfennig | Pfennig | ||||
| Symbol | |||||
| Pfennig | ₰ | ||||
| Banknotes | 5, 10, 20, 50, 100, 1000 Mark | ||||
| Coins | 1, 2, 5, 10, 20, 25 Pfennig 1⁄2, 1, 2, 3, 5, 10, 20 Mark | ||||
| Demographics | |||||
| User(s) |  German Empire•  German colonial empire | ||||
| Issuance | |||||
| Central bank | Reichsbank | ||||
| This infobox shows the latest status before this currency was rendered obsolete. | |||||
TheGerman mark (German:Goldmark[ˈɡɔltmaʁk]ⓘ;sign:ℳ︁) was the currency of theGerman Empire, which spanned from 1871 to 1918. The mark was paired with the minor unit of thepfennig (₰); 100 pfennigs were equivalent to 1 mark. The mark was on thegold standard from 1871 to 1914, but like most nations duringWorld War I, the German Empire removed the gold backing in August 1914, and gold[1] coins ceased to circulate.
After the fall of the Empire due to theNovember Revolution of 1918, the mark was succeeded by theWeimar Republic's mark, derisively referred to as thePapiermark (lit. 'Paper mark') due tohyperinflation in the Weimar Republic from 1918 to 1923.
The introduction of the German mark in 1873 was the culmination of decades-long efforts to unify the various currencies used by theGerman Confederation.[2] TheZollverein unified in 1838 the Prussian and South German currencies at a fixed rate of 1Prussian thaler =1+3⁄4South German gulden = 16.704 g fine silver. A larger currency convention in 1857 replaced the Prussian thaler with theVereinsthaler of16+2⁄3 g fine silver, equivalent to 1North German thaler,1+1⁄2Austro-Hungarian florins, or1+3⁄4South German gulden.
Unification to this system proceeded further due toGerman Unification in 1871 as well as monetary conventions from 1865 to 1870 expressing a desire to move to thegold standard.[2] For this system a new unitmark was proposed equal to adrittelthaler or1⁄3 Vereinsthaler, also equal to1⁄2 the Austrian gulden, but decimally divided into 100 pfennig instead of the existing 120 pfennig. The new mark of 5 g fine silver was equivalent to100⁄279 g fine gold. With 5 billiongold francs (equivalent to 4.05 billion gold marks) secured from France at theend of the Franco-Prussian War, the new currency was launched in 1873 in the form of gold 10-mark and 20-mark coins as well as limited legal-tender silver marks and copper pfennigs. TheGerman Empire's conversion to thegold standard led to the same being adopted in the rest of Europe and North America, as well as the change in standard in theLatin Monetary Union frombimetallism to solely gold.
Despite theVereinsthaler being asilver standard currency, it remained unlimited legal tender for 3 gold marks until it was demonetized in 1908. TheSouth German gulden of4⁄7 Vereinsthaler was converted to1+5⁄7 or 1.71 gold marks. The gold-basedBremen thaler was converted directly to the mark at a rate of 1 Thaler gold =3+9⁄28 or 3.32 marks. TheHamburg mark courant or currency was converted at 1 mark = 1.2 Imperial marks, and theHamburg mark banco of theBank of Hamburg was converted at 1 mark banco = 1.5 Imperial marks.
From 1 January 1876 onwards, the mark andvereinsthaler became the onlylegal tenders. Before 1914, the mark was on agold standard with 2790 marks equal to 1 kilogram of pure gold (1 mark = 358 mg). The termGoldmark was created later to retrospectively distinguish it from thePapiermark (paper mark) which suffered a serious loss of value through hyperinflation following World War I duringhyperinflation in the Weimar Republic. For comparison, from 1900 to 1933, the United States adhered to a gold standard as well with thegold dollar containing 1.50463 grams (23.22grains) fine gold; it was therefore worth 4.198 gold marks. Themonetary hegemon of the time when the gold mark was in use, however, was thepound sterling, with thesovereign (£1) being valued at 20.43 gold marks.
World War I reparations owed by Germany were stated in gold reserves in 1921, 1929 and 1931; this was the victorious Allies' response to their fear that vanquished Germany might try to pay off the obligation in paper currency.[citation needed] The actual amount of reparations that Germany was obliged to pay out was not the 132 billion marks cited in the London Schedule of 1921 but rather the 50 billion marks stipulated in the A and B Bonds. The actual total payout from 1920 to 1931 (when payments were suspended indefinitely) was 20 billion German gold marks, worth aboutUS$5 billion or£1 billion. Most of that money came from loans from New York bankers.[3]
Following theNazi seizure of power in 1933, payments of reparations were officially abandoned.West Germany afterWorld War II did not resume payment of reparations as such, but did resume the payment of debt that Germany had acquired in the inter-war period to finance its reparation payments, paying off the principal on those debts by 1980. The interest on those debts was paid off on 3 October 2010, the 20th anniversary ofGerman reunification.[4]
Coins of denominations between 1 pfennig and 1 mark were issued in standard designs for the whole empire, whilst those above 1 mark were issued by the individual states, using a standard design for the reverses (theReichsadler, the eagle insignia of the German Empire) with a design specific to the state on the obverse, generally a portrait of the monarch of the kingdom or duchy (and not that of the emperor); while the free cities of Bremen, Hamburg, and Lübeck each used the city's coat of arms. Occasionallycommemorative coins were minted, in which cases the obverse and (much more rarely) the reverse designs might depart from the usual pictorial standards. Many of the smaller states issued coins in very small numbers. Also, in general all states' coinage became very limited after theFirst World War began. Well-preserved examples of such low-mintage coins can be rare and valuable. ThePrincipality of Lippe was the only state not to issue any gold coins in this period.
Subsidiary silver coins were minted in .900fineness to a standard of 5 grams silver per mark. Production of 2 and 5 mark coins ceased in 1915 while 1-mark coins continued to be issued until 1916. A few 3 mark coins were minted until 1918, and1⁄2 mark coins continued to be issued in silver until 1919.
These silver coins are token or subsidiary currency for the gold mark and are therefore legal tender only up to 20 marks. However, all silver 3-markVereinsthalers issued before 1871 enjoyed unlimited legal tender status even after the switch-over to thegold standard. This ended with the demonetization of theVereinsthaler in 1908 and the introduction of the new subsidiary 3-mark coins.
The 5-mark coin, however, was significantly closer in value to older thalers (and other such crown-sized coins).
Gold coins were minted in .900 fineness to a standard of 2,790 mark = 1 kilogram of gold (a mark was therefore about 5.5313 grains or 0.35842 grams of gold; a troy ounce of gold was worth 86.78 ℳ︁). Gold coin production ceased in 1915. 5-mark gold coins were minted only in 1877 and 1878.
The 20 mark is the most seen and offers a variety of different types that were mass-produced and therefore can be purchased at a low premium above each coin's melt value. However, some designs are extremely elusive given that they were struck in very low mintages. The rarest type features Adolph Friedrich V with just 1,160 pieces issued by the Berlin Mint.[5]
Banknotes were issued by the Imperial Treasury (known as "Reichskassenschein") and theReichsbank, as well as by the banks of some of the states. Imperial Treasury notes were issued in denominations of 5, 10, 20 and 50 Mark, whilst Reichsbank notes were produced in denominations of 20, 50, 100 and 1000 Mark. The notes issued after 1914 are referred to asPapiermark.
In Unicode, the Mark sign isU+2133 ℳSCRIPT CAPITAL M. The Pfennig isU+20B0 ₰GERMAN PENNY SIGN.
| Preceded by: Vereinsthaler Location: manyGerman states Reason:German unification Ratio: 1 Mark =1⁄3 Vereinsthaler | Currency of Germany 1871 – 1914 | Succeeded by: German Papiermark Ratio: at par |
| Preceded by: South German Gulden Location: southern Germany incl.Bavaria,Baden,Württemberg,Frankfurt andHohenzollern Reason:German unification Ratio: 1 Mark =7⁄12 Gulden | ||
| Preceded by: Bremen Thaler Location:Bremen Reason:German unification Ratio: 1 Mark =28⁄93 Thaler, or 39⁄28 Mark = 1 Thaler | ||
| Preceded by: Hamburg Mark Location:Hamburg Reason:German unification Ratio: 1 new Mark =5⁄6 Hamburg Mark | ||
| Preceded by: French franc Location:Alsace-Lorraine Reason:German unification Ratio: 0.81 Mark = 1 French Franc |
