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| Rentenmark (German) | |
|---|---|
.jpg) One Rentenmark note | |
| Unit | |
| Plural | Rentenmark |
| Symbol | RM |
| Denominations | |
| Subunit | |
| 1⁄100 | Rentenpfennig |
| Plural | |
| Rentenpfennig | Rentenpfennig |
| Symbol | |
| Rentenpfennig | Rpf. |
| Banknotes | RM 1, RM 2, RM 5, RM 10, RM 50, RM 100, RM 500, RM 1,000 |
| Coins | 1 Rpf, 2 Rpf, 5 Rpf, 10 Rpf, 50 Rpf |
| Demographics | |
| Replaced | Papiermark |
| Replaced by | Reichsmark |
| User(s) |  Germany |
| Issuance | |
| Central bank | Deutsche Rentenbank |
| Valuation | |
| Pegged with | United States dollar = RM 4.20, in turn 1,000,000,000,000ℳ = RM 1 (1 trillionshort 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. | |
TheRentenmark (German:[ˈʁɛntn̩ˌmaʁk]ⓘ;RM) was a currency issued on 15 November 1923 to stop thehyperinflation of 1922 and 1923 inWeimar Germany, after the previously usedPapiermark had become almost worthless.[1] It was subdivided into 100Rentenpfennig and was replaced in 1924 by theReichsmark.
After theOccupation of the Ruhr in early 1923 by French and Belgian troops, referred to as theRuhrkampf, theGerman government ofWilhelm 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 theRuhrkampf 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 thePapiermark went into freefall on the currency market. Foreign currency reserves at theReichsbank dwindled.[2]
Ashyperinflation took hold, the cabinet of Cuno resigned in August 1923 and was replaced by the cabinet ofGustav Stresemann. After Stresemann reshuffled his cabinet in early October,Hans Luther became Minister of Finance.[2][3] Working withHjalmar Schacht at the Reichsbank, Luther quickly came up with a stabilization plan for the currency which combined elements of a monetary reform by economistKarl Helfferich with ideas of Luther's predecessor in officeRudolf 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 newRentenbank was established that same day, 15 October 1923.[3]
The newly createdRentenmark replaced the oldPapiermark on 15 November. Because of the economic crisis in Germany after theFirst 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 wasmortgaged (Rente is a technical term for mortgage in German, butRentner meanspensioner) to the tune of 3.2 billionGoldmarks, based on the 1913 wealth charge calledWehrbeitrag 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 oneUnited 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 initiallylegal tender, it was accepted by the population and its value was relatively stable. The Act prohibited the recently privatised Reichsbank from continuing todiscount 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. TheReichsmark 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 theDawes Plan.[3] TheRentenbank continued to exist after 1924 and the notes and coins continued to circulate. The last Rentenmark notes were valid until 1948.
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 inbronze, 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 theReichsmark from theWeimar and earlyThird Reich periods.
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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).
| Preceded by: Mark Reason: inflation 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 inTrizone (laterWest 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 ofhyperinflation and stop the rampant barter andblack 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 |
Media related toRentenmark at Wikimedia Commons
