Notgeld

From Vero - Wikipedia
Jump to navigation Jump to search

Template:More citations needed


Template:Short description

File:German banknotes in 1917-1919, the town money.JPG
Different examples of German Template:Lang notes, 1917–19

Template:Lang (German for 'emergency money' or 'necessity money') is money issued by an institution in a time of economic or political crisis. The issuing institution is usually one without official sanction from the central government. This usually occurs when not enough state-produced money is available from the central bank. In particular, Template:Lang generally refers to money produced in Germany and Austria during World War I and the Interwar period. Issuing institutions could be a town's savings banks, municipalities and private or state-owned firms. Nearly all issues contained an expiry date, after which time they were invalid. Issues without dates ordinarily had an expiry announced in a newspaper or at the place of issuance.

Template:Lang was mainly issued in the form of (paper) banknotes. Sometimes other forms were also used: coins, leather, silk, linen, wood, postage stamps, aluminium foil, coal, and porcelain; there are also reports of elemental sulfur being used, as well as all sorts of re-used paper and carton material (e.g. playing cards). These pieces made from playing cards are extremely rare and are known as Template:Lang, the German word for 'playing cards'.

Template:Lang was a mutually-accepted means of payment in a particular region or locality, but notes could travel widely. Some cases of Template:Lang could better be defined as scrip, which were essentially coupons redeemable only at specific businesses. However, the immense volume of issues produced by innumerable municipalities, firms, businesses, and individuals across Germany blurred the definition. Collectors tend to categorize by region or era rather than issuing authority (see below). Template:Lang is different from occupation money (e.g. Japanese invasion money) that is issued by an occupying army during a war.

Germany

Arnold Keller, historian and orientalist, classified German Template:Lang into different periods. Keller edited a magazine called Template:Lang during the "collector phase" of Template:Lang issuance. He compiled a series of catalogs in the years afterward. Although incomplete in many cases, his work formed the foundations of the hobby.

In World War I

File:Notgeld Burghausen 1918 50 Pfennig Vorderseite.jpg
Template:Lang 50 Template:Lang banknote issued by the southern German city of Burghausen in 1918

Template:Lang was released even before Germany entered World War I. On 31 July 1914 three notes were issued by the Template:Lang of Bremen<ref>Template:Cite book</ref> (a brewery). This was due to hoarding of coins by the population in the days before war was declared. The first period of Template:Lang continued until the end of 1914, but mostly ceased once the German Template:Lang made up for the shortage with issues of small denomination paper notes and coins of cheaper metal.

As the war dragged on, acute monetary shortages could not be met by the German central bank, leading to a new period of Template:Lang beginning in 1916. Additionally, the non-precious metals used to mint lower value coins were needed to produce war supplies. Dr Keller arranged this period into two catalogs: Template:Lang for issues of less than 1 Mark face value and Template:Lang for values 1 Mark and higher. This period of issue came to a close in 1919.<ref>Template:Cite journal</ref>

World War I prison camp money

Although camp money used by prisoners of war was different from Template:Lang, collectors inevitably lumped this material into the hobby. The period covered the entire war, 1914–1918. This field of collecting may include World War II issues, though this covers only notes circulated in concentration camps, as the German Template:Lang in charge of prisoners of war prepared a general issue of notes for all camps under their direction.

Collector series

File:Mainz 50 Pfg 1921.jpg
50-Template:Lang Template:Lang issued by Mainz, 1921

Though the production of Template:Lang was initially amateurish, with many set by typewriter or even handwritten, collectors soon appeared on the scene to take hold of the expired 1914 stock. With the next wave of issues in the latter half of the war, Template:Lang production was handled by professional printers. These issues incorporated pleasing designs, and a new reason for hoarding came into being.

As the issuing bodies realized this demand, they began to issue notes in 1920, well after their economic necessity had ended. They may have been motivated by the success of Austrian collector Template:Lang earlier in the year (see below). Notes were issued predominantly in 1921 and were usually extremely colorful. These depicted many subjects, such as local buildings, local scenery and folklore, as well as politics. Many were released in series of 6, 8, or more notes of the same denomination, and tell a short story, with often whimsical illustrations. Often, they were sold to collectors in special envelope packets printed with a description of the series.

Keller published information on releases in his magazine Template:Lang. Often, he used his publication to criticize issuers for charging collectors more money for the series than their face value.

These collector-only sets, which were never intended to circulate, were known as Template:Lang (pieces issued as a part of a series). Quite often, the validity period of the note had already expired when the Template:Lang was issued. As such, they are usually found in uncirculated condition, and are most favored by collectors all over the world.

1922 and 1923: Hyperinflation

File:Notgeld fritz quant 10 millionen mark.jpg
Template:Lang for 10 million Mark from Trier, Germany (1923), view of Trier. Design by Fritz Quant, after a copperplate print by Matthäus Merian (1646)

In 1922, due to uncontrolled printing of money, inflation started to get out of control in Germany, culminating in hyperinflation. Throughout the year, the value of the mark deteriorated faster and faster, and new money was issued in higher and higher denominations. The Template:Lang could not cope with the logistics of providing all these new notes, and Template:Lang was again issued—this time in denominations of hundreds and then thousands of Marks.

File:5milmkbk.jpg
A 5 million mark coin, issued by the Province of Westphalia during the hyperinflation of 1923

By July 1923, the Template:Lang had totally lost control of the economy. Template:Lang flooded the economy; it was issued by any city, town, business, or club that had access to a printing press, in order to meet the ever-increasing rise in prices. Even Template:Lang were being hand-stamped with large denominations to meet the demand. By September, Template:Lang was denominated in the tens of millions; by October, in billions; by November, trillions.

On November 12, the Template:Lang declared the Mark to be valueless, and ceased all issuance. By now, Template:Lang was being denominated in the form of commodities or other currencies: wheat, rye, oats, sugar, coal, wood, quantities of natural gas, and kilowatt-hours of electricity. These pieces were known as Template:Lang, or notes of "fixed value". There were also Template:Lang coins that were made of compressed coal dust. These became quite rare, as most of them were eventually traded with the coal merchant issuer for actual coal and some may have even been burned as fuel.

In January 1924, the Template:Lang fixed the value of the new Template:Lang in gold. One U.S. dollar was now equivalent to 4.2 Template:Lang (or 4.2 trillion old Template:Lang, which were permitted to be exchanged beginning 30 August 1924). Until that date, a few municipalities issued Template:Lang with denominations of 4.2 Mark or multiples or fractions of that. After that date, Template:Lang of regular denominations were briefly issued, until the Template:Lang forbade any further interference in the economy by local authorities.

During the Interwar period, local municipalities and civic groups capitalized on the public memories of Template:Lang by issuing certificates aimed at collectors, to raise funds for various building projects. These "Building Blocks" (Template:Lang) tended to be of relatively high face value and issued in very limited numbers.

After World War II

The Template:Lang kept strict control of the economy during World War II, and forbade local authorities from independently meeting money shortages. After Germany's defeat, the Allied Military Control issued currencies for each of their respective areas of control, but did not alleviate coin scarcity. The dire situation after the war forced municipalities to once again issue Template:Lang to help the population meet small change needs. Finally, the Currency Reform of June 1948 created the Template:Lang and prohibited issuance of Template:Lang. Apart from commemorative pieces issued sporadically, the era of Template:Lang in Germany came to a close.

Austria

Revolution of 1848

File:50pfg-koeln2.jpg
Template:Lang banknote, issued by the city of Cologne, 1922, depicting two members of the carnival guard Template:Lang in the uniforms of city soldiers from Cologne who are performing the traditional dance Template:Lang. Signed by Lord Mayor Konrad Adenauer, later the first chancellor of the Federal Republic of Germany.

Austrian municipalities experienced coin shortages during the revolution of 1848, especially in the Czech towns, and therefore many municipalities and industrial concerns issued Template:Lang as a temporary measure. By 1850, the state finances were in such an order as to render them unnecessary, though certain parts of Hungary still experienced shortages as late as 1860, requiring Template:Lang-type issues.

World War I

As in Germany, municipalities in Austria-Hungary issued Template:Lang at the beginning of World War I. In most cases, small change scarcity was severest in the industrial Czech towns of Bohemia and Moravia. From the end of the war into 1919, German-speaking towns of the new Czechoslovakia issued Template:Lang notes until the authorities forbade them to do so.

File:WWI Hungarian lagergeld - 10 filler 1915 Kenyérmező.jpg
Hungarian prison camp money, 10 Template:Lang 1915, Breadfield

Prison camp money

As with Germany, collectors tended to lump Austro-Hungarian prison camp money in with Template:Lang. Most issues date from 1916–1917, with the majority of camps situated in Austria proper, Hungary, and Czech territories.

Collector series

In 1920, hundreds of small towns across Upper and Lower Austria, but also many towns in Salzburg, Tyrol, and Styria, issued sets of collectible Template:Lang, usually in three denominations with expiry dates of three months from issuance. Nearly all were printed on thin paper, often in runs (Template:Lang) of different colors or shades. Some of these notes actually circulated, but the vast majority entered private collections, and the scheme's success in raising funds for destitute town budgets convinced German towns to do the same thing (see above).

After the initial run of regular series, there were numerous releases of "special issues" (Template:Lang) featuring different designs and denominations, fanciful overprints, or the same design as the general issues but in expensive metallic inks on different paper types. Many of these special issues were printed in very small quantities in order to charge premiums to collectors. Groups of rural villages issued Template:Lang, even though some had populations of only a few dozen inhabitants.

Depression-era Template:Lang

In a bid to increase economic activity, several depressed municipalities in the Alps regions of Austria experimented with demurrage currency features in their Template:Lang during the period 1932–1934. As the notes lost value (Template:Lang) over time, the idea was to convince holders to spend them quickly, thereby spurring economic activity. Notes had dated spaces for demurrage coupons to be affixed to them, and each one lessened the total value as they were added. The effort was unsuccessful because the scale of the experiment was too small to show any benefit.<ref>Template:Cite book</ref>

In other countries

Ireland (1689–1691)

File:Gun money.JPG
Brass crown issued by Jacobite forces. It was intended to be exchanged for a sterling silver coin in the event of James' victory.

The forces of James II minted coins in base metal (copper, brass, pewter) during the Williamite War in Ireland, which were known as gun money, because some of the metal was sourced from melted-down cannon. It was intended that, in the event of James' victory, the coins could be exchanged for real silver coins. They were also stamped with the month of issue so that soldiers could claim interest on their wages. As James lost the war, that replacement never took place, but the coins were allowed to circulate at much reduced values before the copper coinage was resumed.

Sweden (1715–1719)

In Sweden, between 1715 and 1719, 42 million coins with the nominal value 1 Template:Lang silver were manufactured, but made in copper, with a much smaller metal value. All silver coins were collected by the government, which replaced them with the copper coins. They were called Template:Lang ('emergency coins'). This was done to finance the Great Northern War. The government promised to exchange them into the correct value at a future time, a kind of bond made in metal. Only a small part of this value was ever paid.

Belgium (1914–1918)

File:Etablissements Louis Biret, timbre de 5 centimes.jpg
A French Template:Lang coin, using a 5 centimes postage stamp to provide an indicator of value, 1920s. Note that if that stamp has been paid for it has no face value.

Throughout the German occupation of Belgium during World War I there was a shortage of official coins and banknotes in circulation. As a result, around 600 Template:Lang, local governments and companies issued their own unofficial "necessity money" (Template:Langx, Template:Langx) to enable the continued functioning of the local economies.<ref>Template:Cite web</ref> These usually took the form of locally produced banknotes, but a few types of coins were also issued in towns and cities. In 2013, the Museum of the National Bank of Belgium digitized its collection of Belgian Template:Lang, which is available online.<ref>Template:Cite web</ref>

France (1914–1927)

Between 1914 and 1927, large amounts of Template:Lang were issued in France and its North African colonies during the economic crisis caused by World War I. Among the issuing authorities were companies and local chambers of commerce.

Spain (1936–1939)

Emergency currency circulated in Spain during the Spanish Civil War.<ref name=gomez-2018>Template:Cite web</ref>

Others

The concept of Template:Lang as temporary payment certificates is nearly as old and widespread as paper money itselfTemplate:Cn. Other countries using Template:Lang-style temporary money include the following (date ranges are approximate): Template:Div col

Template:Div col end

See also

Template:Portal

References

Template:Reflist

Template:Authority control