German rentenmark

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A 1926 5 Rentenmark banknote (http://www.germannotes.com)

The Rentenmark was a currency issued on 15 November 1923 to stop the hyperinflation (1922 & 1923) in Germany. It replaced the Papiermark, which was completely devalued. The Rentenmark was only an intermediate currency and was not a legal tender. It was however accepted by the population and effectively stopped the inflation. The Reichsmark soon became the new legal tender on 30 August 1924.

However, the Rentenbank still existed afterwards and the notes and coins continued to circulate. The last Rentenmark notes (denominated 1 and 2 Rentenmark and dated 30 January 1937) were valid until 1948.

Due to the economic crises in Germany after the Great War 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 of 1 United States dollar = 4.2 RM. The rate of the Rentenmark to the Papiermark was 1:10^{12^Papiermark.}

The monetary policy spear-headed 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.

[edit] See also

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 = 10 Rentenmark, and each person received 40 Mark