Notice the full-bleed watermark pattern (highlighted with a back light). Only front side has printing. Fünf Millionen translates to Five Million.
Posted on 06/30/2009 6:27:55 AM PDT by BGHater
Prologue
WHEN a nation's money is no longer a source of security, and when inflation has become the concern of an entire people, it is natural to turn for information and guidance to the history of other societies who have already undergone this most tragic and upsetting of human experiences. Yet to survey the great array of literature of all kinds — economic, military, social, historic, political, and biographical — which deals with the fortunes of the defeated Central Powers after the First World War is to discover one particular shortage. Either the economic analyses of the times (for reasons best known to economists who sometimes tend to think that inflations are deliberate acts of fiscal policy) have ignored the human element, to say nothing in the case of the Weimar Republic and of post-revolutionary Austria of the military and political elements; or the historical accounts, though of impressive erudition and insight, have overlooked — or at least much underestimated — inflation as one of the most powerful engines of the upheavals which they narrate.
The first-hand accounts and diaries, on the other hand, although of incalculable value in assessing inflation from the human aspect, have tended even in anthological form either to have had too narrow a field of vision — the battle seen from one shell-hole may look very different when seen from another — or to recall the financial extravaganza of 1923 in such a general way as to underplay the many years of misfortune of which it was both the climax and the herald.
The agony of inflation, however prolonged, is perhaps somewhat similar to acute pain — totally absorbing, demanding complete attention while it lasts; forgotten or ignorable when it has gone, whatever mental or physical scars it may leave behind.
(Excerpt) Read more at mises.org ...
Notice the full-bleed watermark pattern (highlighted with a back light). Only front side has printing. Fünf Millionen translates to Five Million.
Ping.
Money is no more than a medium of exchange. Only when it has a value acknowledged by more than one person can it be so used. The more general the acknowledgement, the more useful it is. Once no one acknowledged it, the Germans learnt, their paper money had no value or use — save for papering walls or making darts. The discovery which shattered their society was that the traditional repository of purchasing power had disappeared, and that there was no means left of measuring the worth of anything. For many, life became an obsessional search for Sachverte, things of 'real', constant value: Stinnes bought his factories, mines, newspapers. The meanest railway worker bought gewgaws. For most, degree of necessity became the sole criterion of value, the basis of everything from barter to behaviour. Man's values became animal values. Contrary to any philosophic assumption, it was not a salutory experience.
At the end of this section:
In war, boots; in flight, a place in a boat or a seat on a lorry may be the most vital thing in the world, more desirable than untold millions. In hyperinflation, a kilo of potatoes was worth, to some, more than the family silver; a side of pork more than the grand piano. A prostitute in the family was better than an infant corpse; theft was preferable to starvation; warmth was finer than honour, clothing more essential than democracy, food more needed than freedom.
Looks like a private note/coupon for a coal company private store.
My German isn’t too good , but I think it says something about only being good for one month?
Not exactly a banknote, but in 1923 5M RM might buy a cup
of coffee at whatever passed for starbucks in those days.
One was a South American deciding to pay off his mortgage after a period of hyperinflation because the stamp every month was more expensive than the mortgage payment was.
I read that when people died and the insurance money arrived, it wouldn't buy the stamp that was on the envelope the payment came in.
I can remember in the '70s when some restaurants that were not posh, handing out menues with blank prices - you had to ask the waiter how much. That really hit me as I had just read about them doing that in the Weimar days. While I'm still of the idea that we'll be hit with a surprise Depression (since everyone is expecting inflation), it would be prudent to search on the Weimar inflation and glean the reports for ideas you may be able to use in the near future.
The ruinous French demands for restitution after WWI was the exact and immediate cause of the situation that led to WWII. The Germans had no choice, really. Stand by and watch one’s wife and children starve to death, or go to war? Personally, I’d have been getting my rifle.
At least we learned from that and the Marshall Plan was the approach after WWII.
F. Paul Wilson wrote a terrific short story called “Aryans and Absinthe” that follows a couple of men profiteering in the advancing inflation.
He’s a Libertarian with some terrific fiction literature geared toward freedom, especially the LaNague Federation series. My favs though are the Repairman Jack books.
You can click on the book below to get it from Amazon:
You are in luck... it appears that you can still read it or download it for free online here and only here:
When Money Dies: The Nightmare of the Weimar Collapse
This book was out of print for a while, but now is being reissued. If you are interested, I suggest you grab the free e-book above while it lasts, as it will likely soon disappear since the book has gone back into print.
:)
Of course you can always buy a bookshelf copy from Amazon as it's cheap enough.
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