German rentenmark
Encyclopedia
The Rentenmark (RM) was a currency
issued on 15 November 1923 to stop the hyperinflation
of 1922 and 1923 in Germany
. It was subdivided into 100 Rentenpfennig.
, there was no gold
available to back the currency. Therefore the Rentenbank
, which issued the Rentenmark, mortgaged land and industrial goods worth 3.2 billion
Rentenmark to back the new currency. The Rentenmark was introduced at a rate 1 Rentenmark = 1012 Deutsche Mark, establishing an exchange rate of 1 United States dollar
= 4.2 RM.
The Rentenmark was only a temporary currency and was not legal tender. It was, however, accepted by the population and effectively stopped the inflation. The Reichsmark
became the new legal tender on 30 August 1924, equal in value to the Rentenmark.
The monetary policy spearheaded by Hjalmar Schacht
—the Central Banker—together with the fiscal policy of German Chancellor Gustav Stresemann
and Finance Minister
Hans Luther
brought the inflation in Germany to an end.
The Rentenbank continued to exist after 1924 and the notes and coins continued to circulate. The last Rentenmark notes were valid until 1948.
, with the remaining coins in aluminium-bronze.
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...
issued on 15 November 1923 to stop the 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...
of 1922 and 1923 in Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
. It was subdivided into 100 Rentenpfennig.
History
The Rentenmark replaced the Deutsche Mark. Due to the economic crises in Germany after World War IWorld 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...
, there was no gold
Gold
Gold is a chemical element with the symbol Au and an atomic number of 79. Gold is a dense, soft, shiny, malleable and ductile metal. Pure gold has a bright yellow color and luster traditionally considered attractive, which it maintains without oxidizing in air or water. Chemically, gold is a...
available to back the currency. Therefore the Rentenbank
Rentenbank
Rentenbank is a bank that serves as a financial institution for agriculture and the food industry in Germany. It was founded in 1923 and is headquartered in Frankfurt, Germany....
, which issued the Rentenmark, mortgaged land and industrial goods worth 3.2 billion
1000000000 (number)
1,000,000,000 is the natural number following 999,999,999 and preceding 1,000,000,001.In scientific notation, it is written as 109....
Rentenmark to back the new currency. The Rentenmark was introduced at a rate 1 Rentenmark = 1012 Deutsche Mark, establishing an exchange rate of 1 United States dollar
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....
= 4.2 RM.
The Rentenmark was only a temporary currency and was not legal tender. It was, however, accepted by the population and effectively stopped the inflation. The Reichsmark
German reichsmark
The Reichsmark was the currency in Germany from 1924 until June 20, 1948. The Reichsmark was subdivided into 100 Reichspfennig.-History:...
became the new legal tender on 30 August 1924, equal in value to the Rentenmark.
The monetary policy spearheaded by Hjalmar Schacht
Hjalmar Schacht
Dr. Hjalmar Horace Greeley Schacht was a German economist, banker, liberal politician, and co-founder of the German Democratic Party. He served as the Currency Commissioner and President of the Reichsbank under the Weimar Republic...
—the Central Banker—together with the fiscal policy of German Chancellor Gustav Stresemann
Gustav Stresemann
was a German politician and statesman who served as Chancellor and Foreign Minister during the Weimar Republic. He was co-laureate of the Nobel Peace Prize in 1926.Stresemann's politics defy easy categorization...
and Finance Minister
Finance minister
The finance minister is a cabinet position in a government.A minister of finance has many different jobs in a government. He or she helps form the government budget, stimulate the economy, and control finances...
Hans Luther
Hans Luther
Hans Luther was a German politician and Chancellor of Germany.-Biography:Born in Berlin, Luther started in politics in 1907 by becoming the town councillor in Magdeburg. He continued on becoming secretary of the German Städtetag in 1913 and then mayor of Essen in 1918...
brought the inflation in Germany to an end.
The Rentenbank continued to exist after 1924 and the notes and coins continued to circulate. The last Rentenmark notes were valid until 1948.
Coins
Coins were issued dated 1923, 1924 and 1925 in denominations of 1, 2, 5, 10 and 50 Rentenpfennig. Only small numbers of Rentenpfennig coins were produced in 1925. A few 1 Rentenpfennig coins were struck dated 1929. The 1 and 2 Rentenpfennig were minted in bronzeBronze
Bronze is a metal alloy consisting primarily of copper, usually with tin as the main additive. It is hard and brittle, and it was particularly significant in antiquity, so much so that the Bronze Age was named after the metal...
, with the remaining coins in aluminium-bronze.