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Mark (money)
Encyclopedia
Western Europe
Western Europe is a loose term for the collection of countries in the western most region of the European continents, though this definition is context-dependent and carries cultural and political connotations. One definition describes Western Europe as a geographic entity—the region lying in the...
and often equivalent to 8 ounces. Considerable variations, however, occurred throughout the Middle Ages
Middle Ages
The Middle Ages is a periodization of European history from the 5th century to the 15th century. The Middle Ages follows the fall of the Western Roman Empire in 476 and precedes the Early Modern Era. It is the middle period of a three-period division of Western history: Classic, Medieval and Modern...
(see du Cange
Charles du Fresne, sieur du Cange
Charles du Fresne, sieur du Cange or Ducange was a distinguished philologist and historian of the Middle Ages and Byzantium....
, Gloss. med. et infim. Lat., s.v. Marca
Marca
Marca may refer to:Places:* Marca, Sălaj, a commune in Sălaj County, Romania* an alternative name for Merca, Somalia* Marca District, in the province Recuay, PeruMarches:* Marca is the Latin term for border regions known as a Marks or Marches...
for a full list).
England and Scotland
In England the "mark" never appeared as a coin, but was only used as a unit of accountUnit of account
A unit of account is a standard monetary unit of measurement of value/cost of goods, services, or assets. It is one of three well-known functions of money. It lends meaning to profits, losses, liability, or assets....
. It was apparently introduced in the 10th century by the Danes. According to 19th century sources, it was first equivalent to 100 pence
Penny
A penny is a coin or a type of currency used in several English-speaking countries. It is often the smallest denomination within a currency system.-Etymology:...
, but after the Norman Conquest it was worth 160 pence, or 13 shillings and 4 pence, ie ⅔ of a Pound Sterling
Pound sterling
The pound sterling , commonly called the pound, is the official currency of the United Kingdom, its Crown Dependencies and the British Overseas Territories of South Georgia and the South Sandwich Islands, British Antarctic Territory and Tristan da Cunha. It is subdivided into 100 pence...
.
In Scotland, the Merk Scots was a silver coin of that value, issued first in 1570 and afterwards in 1663.
Germany
In northern GermanyGermany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
(especially Hamburg
Hamburg
-History:The first historic name for the city was, according to Claudius Ptolemy's reports, Treva.But the city takes its modern name, Hamburg, from the first permanent building on the site, a castle whose construction was ordered by the Emperor Charlemagne in AD 808...
) and Scandinavia
Scandinavia
Scandinavia is a cultural, historical and ethno-linguistic region in northern Europe that includes the three kingdoms of Denmark, Norway and Sweden, characterized by their common ethno-cultural heritage and language. Modern Norway and Sweden proper are situated on the Scandinavian Peninsula,...
, the Mark was a unit of account, and also a coin, worth 16 schillings or skilling
Skilling
Skilling may refer to:* Jeffrey Skilling, former CEO of Enron Corporation* Tom Skilling, meteorologist in Chicago, Illinois* Michael Skilling, former Attorney General of England and Wales* Skilling, a historical form of currency...
s.
17th century
In an attempt to prevent debasementDebasement
Debasement is the practice of lowering the value of currency. It is particularly used in connection with commodity money such as gold or silver coins...
of the currency, the Bank of Hamburg (German: Hamburger Bank) was founded in 1619, after the example of the Bank of Amsterdam. Both these banks established a stable money of account. The Hamburg unit of account was the Mark Banco. It was credited in exchange for the sale of bullion or by way of credit against collateral. No coins or banknotes were issued, but accounts were opened showing a credit balance. The account holders could use their credit balances by remittances to other accounts or by drawing bills of exchange against them. These bills circulated and could be transferred by endorsement
Endorsement
Endorsement may refer to:*Testimonial in advertising, written or spoken statement endorsing a product*Political endorsement*a form added to an insurance policy, modifying the terms...
, and were accepted as payment. They could also be redeemed. This currency proved to be very stable.
19th century
In 1873 Germany adopted the MarkGerman gold mark
The Goldmark was the currency used in the German Empire from 1873 to 1914.-History:Before unification, the different German states issued a variety of different currencies, though most were linked to the Vereinsthaler, a silver coin containing 16⅔ grams of pure silver...
(colloquially also called the Goldmark) as its currency, following unification in 1871. The name was taken from the Mark Banco. Initially the coins and banknotes of the various predecessor currencies, such as the Thaler
Thaler
The Thaler was a silver coin used throughout Europe for almost four hundred years. Its name lives on in various currencies as the dollar or tolar. Etymologically, "Thaler" is an abbreviation of "Joachimsthaler", a coin type from the city of Joachimsthal in Bohemia, where some of the first such...
, the Kreuzer
Kreuzer
The Kreuzer, in English usually kreutzer, was a silver coin and unit of currency existing in the southern German states prior to the unification of Germany, and in Austria.-Early history:...
, and the Guilder
South German gulden
The Gulden was the currency of the states of southern Germany between 1754 and 1873. These states included Bavaria, Baden, Württemberg, Frankfurt and Hohenzollern....
, continued to circulate, and were treated as fixed multiples of the new unit of account. (This is similar to what happened between 1999 and 2001 when the euro was introduced.) Coins denominated in Marks were first issued in 1873, and gradually replaced the old coins. The Mark Banco was converted into the new Mark at par and the Bank of Hamburg was incorporated as the Hamburg subsidiary into the newly founded Reichsbank
Reichsbank
The Reichsbank was the central bank of Germany from 1876 until 1945. It was founded on 1 January 1876 . The Reichsbank was a privately owned central bank of Prussia, under close control by the Reich government. Its first president was Hermann von Dechend...
(est. 1876), issuing banknotes denominated in Marks.
Early 20th century
In 1914 the Reichsbank stopped demanding first-class collateral (eg good bills of exchange, covered bonds such as Pfandbriefe) when providing credit to borrowers. The Mark became a weak currency, colloquially referred to as the paper markGerman papiermark
The name Papiermark is applied to the German currency from the 4th August 1914 when the link between the Mark and gold was abandoned, due to the outbreak of World War I...
, in order to finance the war effort. In 1918 the pre-war sound money policy was not re-established, and the continuing loose money policy resulted in inflation and then hyperinflation in 1923 (see inflation in the Weimar Republic
Inflation in the Weimar Republic
The hyperinflation in the Weimar Republic was a three year period of hyperinflation in Germany between June 1921 and July 1924.- Analysis :...
). In late 1923, when the former currency was virtually worthless, a new Mark was introduced, called the Rentenmark
German rentenmark
The Rentenmark was a currency issued on 15 November 1923 to stop the hyperinflation of 1922 and 1923 in Germany. It was subdivided into 100 Rentenpfennig.-History:...
(worth Papiermark). This was issued by the new Rentenbank as credit to borrowers, but requiring collateral in the form of first-class claims to real estate. In 1924 the Reichsbank stopped providing unrestricted credit against worthless financial bills, and pegged its new currency, the Reichsmark
German reichsmark
The Reichsmark was the currency in Germany from 1924 until June 20, 1948. The Reichsmark was subdivided into 100 Reichspfennig.-History:...
, to the stable Rentenmark. The Reichsbank rationed its lending, so that the Reichsmark remained at par with the stable Rentenmark. Both currencies, abbreviated RM, continued to exist.
The Rentenmark was originally intended to be withdrawn by 1934, but the Nazi government decided to continue to use the Rentenmark, which enjoyed a considerable trust due to its stability. Nevertheless, the Nazis deliberately overissued both currencies to finance infrastructure investments by the state, expanded government employment and expenditure on items such as armaments. By 1935 laws to limit price, wage and rent increases were needed to suppress inflation. Enormous extra taxes, charged on real estate owners (RM 1 bn. in 1936) and — on the occasion of the anti-Semitic November Pogrom — charged on Jewish Germans (RM 1 bn. in 1938), could not stabilise the economy for long. The start of World War II was used to justify general price controls and rationing. Thus inflation was hidden and materialised in ever-growing aggregate savings of the population, which could not spend its earnings except on limited rations of goods at artificially low prices. However inflation could clearly be seen in prices on the black market, which was severely punished. Initially the economy was supported by war booty taken from occupied countries; this continued to some extent until 1944. However by the end of the war the oversupply of banknotes and coins (RM 3.9 bn. in 1933, 60 bn. in 1945) became obvious, openly showing up in inflated black market prices.
From 1944 the Allies printed occupation marks (also called military marks). The Allies decreed that military marks were to be accepted at par with the Rentenmark and Reichsmark. Banknotes worth 15 to 18 bn. military marks were issued for purchases of the occupying forces in Germany, and for soldiers' wages. However in June 1948 military marks were demonetised as part of the Western and Eastern currency reform in Germany.
In June 1947 the French occupying force in the Saar Protectorate
Saar (protectorate)
The Saar Protectorate was a German borderland territory twice temporarily made a protectorate state. Since rejoining Germany the second time in 1957, it is the smallest Federal German Area State , the Saarland, not counting the city-states Berlin, Hamburg and Bremen...
introduced the Saar Mark
Saar mark
The Saar Mark was a currency issued in June 1947 by the French government for use in Saar. It was at par with the German Reichsmark, and composed of six denominations of banknotes, 1, 2, 5, 10, 50 and 100 Mark....
, which was at par with Rentenmark and Reichsmark. In November 1947 it was replaced by the Saar franc
Saar franc
The franc was the currency of the Saar Protectorate and, later, the state of Saarland in West Germany between 20 November 1947 and 6 July 1959...
.
On June 21, 1948 the Deutsche Mark (German Mark) was introduced by the Bank deutscher Länder
Bank deutscher Länder
The Bank deutscher Länder , abbreviation BdL, was the forerunner of the Deutsche Bundesbank. It was founded on 1 March 1948....
in the western zones of occupation in Germany; the Deutsche Emissions- and Girobank (German bank of issue and giro centre) of the Soviet zone followed suit on June 23, 1948, issuing its own Deutsche Mark (colloquially referred to as the East German Mark
East German mark
The East German mark commonly called the eastern mark , in East Germany only Mark, was the currency of the German Democratic Republic . Its ISO 4217 currency code was DDM...
or Ostmark), later officially called "Mark der Deutschen Notenbank" (1964–1967) and then "Mark der DDR" (1968–1990), through to the adoption in reunified Germany of the euro
Euro
The euro is the official currency of the eurozone: 17 of the 27 member states of the European Union. It is also the currency used by the Institutions of the European Union. The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,...
in 1999, with Germany minting its own German euro coins
German euro coins
German euro coins have three separate designs for the three series of coins. The 1, 2 and 5 cent coins were designed by Rolf Lederbogen, the design for the 10, 20 and 50 cent coins is by Reinhard Heinsdorff and the 1 and 2 euro coins were done by Heinz Hoyer and Sneschana Russewa-Hoyer...
and using the unified Euro banknotes
Euro banknotes
Euro banknotes are the banknotes of the euro, the currency of the eurozone and have been in circulation since 2002. They are issued by the national central banks of the euro area or the European Central Bank...
used all over the Eurozone
Eurozone
The eurozone , officially called the euro area, is an economic and monetary union of seventeen European Union member states that have adopted the euro as their common currency and sole legal tender...
of the 21st century.
Modern usage
"Mark" can refer to the following currencies:- In Germany:
- 1619–1873 Mark Banco of Hamburg
- 1873–1914 German GoldmarkGerman gold markThe Goldmark was the currency used in the German Empire from 1873 to 1914.-History:Before unification, the different German states issued a variety of different currencies, though most were linked to the Vereinsthaler, a silver coin containing 16⅔ grams of pure silver...
, the currency of the German Empire - 1914–1923 German PapiermarkGerman papiermarkThe name Papiermark is applied to the German currency from the 4th August 1914 when the link between the Mark and gold was abandoned, due to the outbreak of World War I...
- 1923–1948 German RentenmarkGerman rentenmarkThe Rentenmark was a currency issued on 15 November 1923 to stop the hyperinflation of 1922 and 1923 in Germany. It was subdivided into 100 Rentenpfennig.-History:...
- 1924–1948 German ReichsmarkGerman reichsmarkThe Reichsmark was the currency in Germany from 1924 until June 20, 1948. The Reichsmark was subdivided into 100 Reichspfennig.-History:...
- 1944–1948 military mark of the occupational forces
- June – November 1947 Saar MarkSaar markThe Saar Mark was a currency issued in June 1947 by the French government for use in Saar. It was at par with the German Reichsmark, and composed of six denominations of banknotes, 1, 2, 5, 10, 50 and 100 Mark....
- 1948–1990 East German MarkEast German markThe East German mark commonly called the eastern mark , in East Germany only Mark, was the currency of the German Democratic Republic . Its ISO 4217 currency code was DDM...
or Ostmark, the currency first in the Soviet zone of occupation and later in the German Democratic RepublicGerman Democratic RepublicThe German Democratic Republic , informally called East Germany by West Germany and other countries, was a socialist state established in 1949 in the Soviet zone of occupied Germany, including East Berlin of the Allied-occupied capital city...
and in Berlin (East) - 1948–1999/2001 German MarkGerman markThe Deutsche Mark |mark]], abbreviated "DM") was the official currency of West Germany and Germany until the adoption of the euro in 2002. It is commonly called the "Deutschmark" in English but not in German. Germans often say "Mark" or "D-Mark"...
or Deutsche Mark (D-Mark, DM), the currency in the western zones of occupation and the later Federal Republic of Germany as well as in Berlin (West)
- In other countries:
- Bosnia and Herzegovina convertible markBosnia and Herzegovina convertible markThe Bosnia and Herzegovina convertible mark is the currency of Bosnia and Herzegovina. It is divided into 100 fenings...
, the currency of Bosnia and Herzegovina - Estonian markEstonian markThe mark was the currency of Estonia between 1918 and 1928. It was initially equivalent to the German Papiermark, which had been circulating alongside the Russian/Soviet ruble since the German occupation. It was divided into 100 penni...
, the currency of Estonia from 1918 to 1927. - Finnish markFinnish markThe Finnish markka was the currency of Finland from 1860 until 28 February 2002, when it ceased to be legal tender. The markka was replaced by the euro , which had been introduced, in cash form, on 1 January 2002....
or markka, the currency of Finland from 1860 to 2001. - New Guinean markNew Guinean markThe Mark was the currency of the colony of German New Guinea between 1884 and 1915. It was equal to the German Mark, which was also legal tender in the colony....
, the historic currency that was replaced in 1915 by the Australian poundAustralian poundThe pound was the currency of Australia from 1910 until 13 February 1966, when it was replaced by the Australian dollar. It was subdivided into 20 shillings, each of 12 pence.- Earlier Australian currencies :... - Polish markaPolish markaThe marka was the currency of the Kingdom of Poland and of the Republic of Poland between 1917 and 1924...
. - South West African markSouth West African markThe South West African mark was a temporary currency issued between 1916 after the withdrawal of the German South West African mark, and prior to the introduction of the South African pound in 1918....
, the historic currency that replaced the German South West African markGerman South West African markThe Mark was the currency of German South West Africa between 1884 and 1915. Until 1914, the German Mark circulated. Within days of the outbreak of the First World War, an issue of paper money titled Deutsch-Südwestafrikanische Mark was authorized in denominations of 5, 10, 20, 50 and 100 Mark...
in South West AfricaSouth West AfricaSouth-West Africa was the name that was used for the modern day Republic of Namibia during the earlier eras when the territory was controlled by the German Empire and later by South Africa....
(now NamibiaNamibiaNamibia, officially the Republic of Namibia , is a country in southern Africa whose western border is the Atlantic Ocean. It shares land borders with Angola and Zambia to the north, Botswana to the east and South Africa to the south and east. It gained independence from South Africa on 21 March...
) from 1916 until 1918
- Bosnia and Herzegovina convertible mark