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. 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 denominated 1 and 2 Rentenmark 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 1:1,000,000,000,000 (1 trillion 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.

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