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Rentenmark

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Rentenmark

German Rentenmark
Rentenmark (German)
Central bank Deutschen Rentenbank
User(s)  Germany
Subunit
 1/100 Rentenpfennig
Symbol RM
Rentenpfennig Rpf.
Plural Rentenmark
Rentenpfennig Rentenpfennig
Coins 1, 2, 5, 10, 50 Rentenpfennig
1, 3 Rentenmark
Banknotes 1, 2, 5, 10, 50, 100, 500, 1000 Rentenmark
This infobox shows the latest status before this currency was rendered obsolete.

The Germany. It was subdivided into 100 Rentenpfennig.

History

The Rentenmark replaced the Papiermark. Because of the economic crisis in Germany after World War I, there was no gold available to back the currency. Therefore the Deutschen 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 of one Rentenmark to equal one trillion old marks, with an exchange rate of one United States dollar to equal 4.2 Rentenmarks.

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 legal tender, it was accepted by the population and its value was relatively stable. The Act prohibited the recently privatised Reichsbank from continuing to discount bills and the inflation of the Papiermark immediately stopped. 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.

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 bronze, with the remaining coins in aluminium-bronze.

Banknotes

The first issue of banknotes was dated 1 November 1923 and was in denominations of 1, 2, 5, 10, 50, 100, 500 and 1000 Rentenmark. Later issues of notes were 10 and 50 Rentenmark (1925), 5 Rentenmark (1926), 50 Rentenmark (1934) and 1 and 2 Rentenmark and dated 1937.

See also

References

  • Act creating the Rentenmark Reichsgzetzblatt Teil I, 17 October 1923
  • GermanNotes.com (2005). German Paper Money 1871-1999. eBook from germannotes.com

Currencies of Germany

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 change over 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
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