East German Mark
From Wikipedia, the free encyclopedia
- For other uses, see DDM (disambiguation).
| ISO 4217 Code | DDM |
| User(s) | German Democratic Republic |
| Pegged with | Deutsche Mark = M11 |
| Subunit | |
| 1/100 | pfennig |
| Symbol | M |
| Plural | Mark |
| pfennig | Pfennig |
| Coins | |
| Freq. used | 1, 5, 10, 20, 50 Pfennig and 1, 2, 5 Mark |
| Rarely used | 10, 20 Mark |
| Banknotes | |
| Freq. used | 5, 10, 20, 50, 100 Mark |
| Rarely used | 200, 500 Mark |
| Central bank | Staatsbank der DDR |
| This infobox shows the latest status before this currency was rendered obsolete. | |
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The East German Mark (German: Mark der DDR) commonly called eastern Mark (Ostmark in West Germany and after the reunification), in East Germany only Mark, was the currency of the German Democratic Republic (East Germany). Its ISO 4217 currency code was DDM. The currency was known officially as the Deutsche Mark until 1964, Mark der Deutschen Notenbank until 1967 and the Mark der DDR (Mark of the GDR) after, it was referred to colloquially as simply the Mark. It was divided into 100 Pfennig (Pf).
Contents |
[edit] History
| East German currencies | |||
|---|---|---|---|
| Name | Abbr. | Introduced | Retired |
| Deutsche Mark | DM | 31 Oct 1951 | 31 Jul 1964 |
| Mark der Deutschen Notenbank | MDN | 1 Aug 1964 | 31 Dec 1967 |
| Mark der DDR | M | 1 Jan 1968 | 30 Jun 1990 |
On 21 June 1948, the Reichsmark and the Rentenmark were abolished in the western occupation zones and replaced with the Deutsche Mark issued by the Bank deutscher Länder (later the Deutsche Bundesbank). Because the Reichsmark was still legal tender in the Soviet occupation zone, the currency flooded into the east from the west where it was worthless. This caused sudden inflation, which caused the privately-held cash supplies of East Germany to become worthless overnight. As an emergency measure, the Soviets affixed a seal to those Reichsmark and Rentenmark banknotes for which the owners could prove their origin. Only those marks were exchanged when the Deutsche Notenbank issued the new East German mark with the subsequent currency reform. The provisional notes were issued a few days after the changeover in the Trizone.
In July 1948, a completely new series of East German mark was issued. It maintained the official name Deutsche Mark until 1964, but it was known, especially in the west, as the Ostmark, or East mark. For the next several years, the currency was denominated Mark der Deutschen Notenbank (MDN).
With the constitutional amendments of 1968 and 1974, the leadership of East Germany moved away from the original goal of a unified Germany, using the phrase "... of the GDR" where earlier they would simply have said "German ...". In this way the name of the currency was changed from MDN to Mark der DDR (M), or "Mark of the GDR", and the name of the state bank from Deutsche Notenbank to Staatsbank der DDR. Coins minted prior to the renaming, with the legend Deutsche Mark (i.e., in 1 and 2 DM denominations), continued to circulate for several years, but they were gradually replaced by the early 1980s by coins with the legend Mark.
It was officially valued by the East German government at parity with the Deutsche Mark, but it was never freely convertible. Visitors to East Germany were required to exchange a set amount of Deutsche Mark for Ostmark at this ratio every day of their stay. On the black market, though, the rate was about 5 to 10 Ms for a DM. The East German Mark could not be spent in Intershops to acquire Western consumer goods; only hard currencies or Forum checks were accepted.
Upon adoption of the Deutsche Mark in East Germany on 1 July 1990, the GDR Mark was converted at par for wages, prices and basic savings (up to a limit of 4000 Mark except for children (less) and pensioners (more)). Larger amounts of savings, company debts and housing loans were converted at a 2:1 rate whilst so-called "speculative money", acquired shortly before unification, was converted at a rate of 3:1. This inflated exchange rate was intended as a massive subsidy for eastern Germany by the government of the Federal Republic of Germany, and remains controversial among economists, with some arguing that the exchange of currency was the most practical way of quickly unifying the German economy, and others arguing that the exchange increased the disruption of German unification beyond what they otherwise would be, by among other things, making eastern German industries uncompetitive.
[edit] Circulating Currency
[edit] Coins
The first issue of coins in 1948 consisted of aluminium 1, 5 and 10 Pfennig denominations, with aluminium-bronze 50 Pfennig coins added in 1950. Aluminium 1 Mark, 2 Mark and 50 Pfennig pieces were released for circulation in 1956, 1957 and 1958, respectively. In 1969, brass 20 Pfennig coins were introduced, with nickel-bronze (later cupronickel) 5 Mark coins issued from 1968.
[edit] Banknotes
Old Rentenmark and Reichsmark notes had stamps affixed in 1948 in denominations of 1, 2, 5, 10, 20, 50 and 100 Deutsche Mark. These were replaced by new notes later the same year, with all the same denominations issued, plus 50 Deutsche Pfennig and 1000 Deutsche Mark.
A second issue of 1955 contained the denominations 5, 10, 20, 50 and 100 deutsche Mark, whilst a third series of 1964 contained the denominations 5, 10, 20, 50 and 100 Mark der Deutschen Notenbank. The final series of East German banknotes carried dates of 1971 or 1975 and was in denominations of 5, 10, 20, 50 and 100 Mark der DDR.
[edit] 50 Mark notes
On the red 50-mark note is a picture of Friedrich Engels, the co-founder of Marxist theory. The reverse shows an industrial complex like those in the Chemical Triangle in Bitterfeld. The confusion of pipes and smokestacks in the chemical plants and power stations highlight the importance of industry in East Germany.
[edit] 100 Mark notes
The highest valued and best known of the notes distributed by the Staatsbank was the 100-mark denomination. The blue note shows Karl Marx on the front, and the back pictures the Palast der Republik in a scene of Unter den Linden strasse. In the background, the Berlin TV tower and the red city hall (Rathaus) can be seen. The combination of science, politics, business, and people was intended to honor the socialist system and to show the GDR as a progressive and modern country.
[edit] 200 and 500 Mark notes
The state bank of the GDR had planned to issue 200- and 500-Mark notes. The notes were, in fact, printed in 1971 and in 1984 as a preparation, but were never circulated. A few examples are held by collectors.
These notes differed from the lower-denomination notes in that they did not have a personality on the obverse. The 200-mark note had on its front a family with two children in front of a modern GDR high-rise. The back pictured a schoolyard with eight children and a teacher. The watermark was a dove of peace.
On the 500-mark note, the front showed the seal of the GDR (hammer and a pair of compasses in a wreath), while the back showed the State Council (Staatsrat) building of the GDR.
[edit] Destruction of the banknotes
All the paper money of the GDR (about 100 billion Mark, or 620 million banknotes with a volume of 4500 m³ (about 300 boxcars)), including all the currency collected at the time of the monetary union and the never-used 200 and 500-mark banknotes, was stored in 1990 and 1991 in two 300 m long sandstone caverns in the Thekenberge near Halberstadt. In total, 3000 tons of banknotes, passbooks, and checks were stored there, having been brought by military convoy from the old treasury in Berlin. With the merger of the state bank, the money went into the possession of the KfW in 1994.
The 13-km tunnel system was built by prisoners of war at the end of World War II, and was used by the National People's Army under the code name "Malachit", or camp complex KL-12 NVA-Nr.16/630. It was the bunker with the largest floor space, and was used for the safeguarding of devices and munitions that would be needed for war. The money was protected from theft by two-meter-thick concrete walls and heavy steel doors. For cost reasons, the money was left to rot under the natural humidity, but it was further covered with gravel.
In July 2001, it was discovered that two Halberstadt residents had gained entry to the tunnel system through an unsecured opening and made off with numerous banknotes. The two, aged 24 and 26 were convicted of the crime and sentenced to four months in prison and three years of probation. Furthermore, they had to pay 120 Euro to a non-profit organization. The uncirculated 200 and 500-mark notes still appear from time to time among collectors.
Because of the theft and the slowness of the rotting, the KfW then decided to burn the old currency. Between April and June of 2002, 298 containers of the currency remains were burned in an incinerator (6 containers per day) along with household refuse. The last container was burned 25 June 2002.
[edit] East German military currency
In 1955, East Germany printed special military banknotes, which were never circulated. They were normal notes from 5 to 100 Mark in denomination, along with a handstamp for state coats of arms or "Sample Note". Preparations were made to introduce them in 1980, but they were never carried out. They were intended to be used in international missions of the National People's Army (NVA).
Those examples that circulate among collectors were most likely stolen when money was evacuated from East Germany in 1990.
| Preceded by: Reichsmark, Rentenmark Reason: reaction to the change over in Trizone (later West Germany) Ratio: 1 Mark = 7 (either) RM on the first 70 RM for private individuals, otherwise 1 Mark = 10 RM |
Currency of East Germany June 24?, 1948 – 1990 |
Succeeded by: Deutsche Mark Reason: German reunification Ratio: at par |
