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GERMAN NOTGELD notes by Charles R. Jansen, Ph.D. What is Notgeld ? How was Notgeld used? Types of Notgeld? Reflections of Notgeld
Numismatists divide Notgeld into bills of very large denominations, typically hundreds of thousands and millions of Marks (Großgeldscheine) and bills of small denominations, typically in pfennigs (Kleingeldscheine). They further subdivide the Kleingeldscheine into several categories: the original Notgeld printed due to shortages during the early years of the war ("classic" Notgeld), Notgeld printed as a part of the war economy ("Kriegsgeld"), Notgeld produced by municipalities and businesses as German inflation worsened ("Seriennotgeld"), and Notgeld that was supposedly backed by the value of some raw materials or foodstuffs ("Goldgeld"), the last produced between 1923 and 1924 as an attempt to halt inflation.
The largest category of Notgeld is the serial emergency money ("Seriennotgeld") issued principally between 1921 and 1922. Notgeld of this type rarely circulated as money, that is as a means of purchasing. Rather, issuing towns and businesses produced these bills as a means of speculation. Often issued only after the validity had expired, Seriennotgeld was sometimes sold directly to collectors or, if it couldn't be sold outright, it was given on consignment to special dealers who would attempt to convert this worthless currency into money of some value. Notgeld collecting was very popular in the years right after the war. Indeed, the number of collectors seemed to grow in proportion to the number of emissions. Catalogs of Notgeld and magazines devoted to the collecting hobby began publication in 1919. "By 1920 many communities had discovered that Notgeld was a considerable source of revenue since avid collectors were willing to pay in hard cash for these notes. As a result, the sets became more colorful and attractive, and appeared more frequently.... Smart operators and dealers bought the Notgeld emission rights of some communities, and printed happily ever after. In other cases, Notgeld was used to finance certain projects. Local sports clubs, for example, issued long sets, the sale of which helped to pay for a new playing field or a stadium" (Krause, 1968, p. 45). Of course, given the huge quantities of Notgeld produced, most Notgeld would never acquire very much real monetary value. SELECTED REFERENCES Krause, Hermann. "A Short History of Notgeld 1914-1924." International Money Collector, May 1968, pp. 42-45. Charles R. Jansen |