These banknotes were printed by the government which would later be referred to as the Weimar Republic, which held power in Germany in the years following World War I after a revolution in November 1918 displaced the German monarchy. Named for the city in which its constitution was established, the Weimar Republic faced a number of issues early on, not the least of which was hyperinflation.
After the war ended, Germany compensated for rising inflation by printing more money. Eventually it was unable to pay for reparations imposed on it by the Treaty of Versailles. As a result foreign troops occupied Ruhr, one of Germany's most productive regions. This spurred a number of strikes and a campaign of passive resistance, which slowed the production of goods, ultimately to a point where Germany had nothing to trade. The striking workers still had to be paid, adding fuel to the fire. Soon Germany was relentlessly printing money in a last ditch effort to avert the crisis.
At the outbreak of WWI a German mark was worth about a quarter in US dollars. By the time these ten million mark banknotes were first printed they were worth just a couple US dollars, and weeks later would be almost worthless.
In November 1923, a new currency was issued at a rate of one trillion old marks for one new Rentenmark in an effort to curb this inflation. Perhaps surprisingly (and for reasons that go beyond the scope of this product description) the effort was largely effective in stabilizing the economy until the Great Depression around six years later.
For more information about the Weimer Republic and hyperinflation in Germany, check out the wikipedia article on the subject here.
Even after approaching a century in age, these notes are in perfect, uncirculated condition. We also sell cheaper, circulated versions of this banknote.
- condition: UNC
- pick-number: 106a
- date: 1923
- denomination: 10,000,000 Marks
- country: germany