German ostmark
Encyclopedia
Ostmark is the name given to a currency
denominated in Mark which was issued by Germany
in 1918 for use in a part of the eastern areas under German control at that time, the Ober Ost
area. The currency consisted of paper money
issued on 4 April 1918 by the ‘Darlehnskasse’ in Kowno (Kaunas
) and was equal to the German Papiermark
. The Ostmark circulated alongside the Russian ruble
and the Ostruble
, with two Ostmarks equal to one (Ost)ruble.
The reverse sides of the ‘Darlehnskassenscheine’ carry a warning against forging banknotes in German, Latvian and Lithuanian.
from the end of World War I
until 1 October 1922, when they were replaced by the litas
. The names skatikas and auksinas were used for Pfennig
and Mark, for example, on postage stamp
s. The reason for the replacement was the link to the German Papiermark
, which already suffered from inflation (and would spiral into hyperinflation
in 1923). The litas was pegged
to the U.S. dollar.
Currency
In economics, currency refers to a generally accepted medium of exchange. These are usually the coins and banknotes of a particular government, which comprise the physical aspects of a nation's money supply...
denominated in Mark which was issued by Germany
German Empire
The German Empire refers to Germany during the "Second Reich" period from the unification of Germany and proclamation of Wilhelm I as German Emperor on 18 January 1871, to 1918, when it became a federal republic after defeat in World War I and the abdication of the Emperor, Wilhelm II.The German...
in 1918 for use in a part of the eastern areas under German control at that time, the Ober Ost
Ober Ost
Ober Ost is short for Oberbefehlshaber der gesamten Deutschen Streitkräfte im Osten, which is a German term meaning "Supreme Commander of All German Forces in the East" during World War I. In practice it refers not only to said commander, but also to his governing military staff and the district...
area. The currency consisted of paper money
Paper Money
Paper Money is the second album by the band Montrose. It was released in 1974 and was the band's last album to feature Sammy Hagar as lead vocalist.-History:...
issued on 4 April 1918 by the ‘Darlehnskasse’ in Kowno (Kaunas
Kaunas
Kaunas is the second-largest city in Lithuania and has historically been a leading centre of Lithuanian economic, academic, and cultural life. Kaunas was the biggest city and the center of a powiat in Trakai Voivodeship of the Grand Duchy of Lithuania since 1413. During Russian Empire occupation...
) and was equal to the German Papiermark
German papiermark
The name Papiermark is applied to the German currency from the 4th August 1914 when the link between the Mark and gold was abandoned, due to the outbreak of World War I...
. The Ostmark circulated alongside the Russian ruble
Russian ruble
The ruble or rouble is the currency of the Russian Federation and the two partially recognized republics of Abkhazia and South Ossetia. Formerly, the ruble was also the currency of the Russian Empire and the Soviet Union prior to their breakups. Belarus and Transnistria also use currencies with...
and the Ostruble
German ostruble
Ostruble is the name given to a currency denominated in kopeck and ruble, which was issued by Germany in 1916 for use in the eastern areas under German occupation . It was initially equal to the Russian ruble. The reason for the issue was a shortage of rubles...
, with two Ostmarks equal to one (Ost)ruble.
Denominations
The denominations available were:- 1/2 Mark;
- 1 Mark;
- 2 Mark;
- 5 Mark;
- 20 Mark;
- 50 Mark;
- 100 Mark;
- 1000 Mark.
The reverse sides of the ‘Darlehnskassenscheine’ carry a warning against forging banknotes in German, Latvian and Lithuanian.
Aftermath
The Ostmark and Ostruble continued to circulate in LithuaniaLithuania
Lithuania , officially the Republic of Lithuania is a country in Northern Europe, the biggest of the three Baltic states. It is situated along the southeastern shore of the Baltic Sea, whereby to the west lie Sweden and Denmark...
from the end of World War I
World War I
World War I , which was predominantly called the World War or the Great War from its occurrence until 1939, and the First World War or World War I thereafter, was a major war centred in Europe that began on 28 July 1914 and lasted until 11 November 1918...
until 1 October 1922, when they were replaced by the litas
Lithuanian litas
The Lithuanian litas is the currency of Lithuania. It is divided into 100 centų...
. The names skatikas and auksinas were used for Pfennig
Pfennig
The Pfennig , plural Pfennige, is an old German coin or note, which existed from the 9th century until the introduction of the euro in 2002....
and Mark, for example, on postage stamp
Postage stamp
A postage stamp is a small piece of paper that is purchased and displayed on an item of mail as evidence of payment of postage. Typically, stamps are made from special paper, with a national designation and denomination on the face, and a gum adhesive on the reverse side...
s. The reason for the replacement was the link to the German Papiermark
German papiermark
The name Papiermark is applied to the German currency from the 4th August 1914 when the link between the Mark and gold was abandoned, due to the outbreak of World War I...
, which already suffered from inflation (and would spiral into hyperinflation
Hyperinflation
In economics, hyperinflation is inflation that is very high or out of control. While the real values of the specific economic items generally stay the same in terms of relatively stable foreign currencies, in hyperinflationary conditions the general price level within a specific economy increases...
in 1923). The litas was pegged
Fixed exchange rate
A fixed exchange rate, sometimes called a pegged exchange rate, is a type of exchange rate regime wherein a currency's value is matched to the value of another single currency or to a basket of other currencies, or to another measure of value, such as gold.A fixed exchange rate is usually used to...
to the U.S. dollar.