The specter of inflation

stamps
postage stamp 5-pf.jpgWhen stock prices plummet, the entire world is turned upside down. Is another stock market crash coming? Is another period of massive inflation on the way? That is why I am thinking back to the period 1923-1924, when the German Empire faced high inflation. The German Mark plummeted by the day—no, by the hour! This can be easily traced using the stamps from that time. While they were initially denominated in Pfennigs with the highest values ​​being just a few Marks, from 1922 onwards, the decline was extremely rapid. In June 1922, the lowest value of a postage stamp was already 5 Marks and the highest 50 Marks. postage stamp 40-mark.jpg postage stamp 100-pf.jpg But in October 1922 the lowest was 50 Marks and in December 1922 the highest value was 500 Marks. postage stamp 500-mark.jpg By early August 1923, the 'value' of a postage stamp had already risen to 5.000 Marks. postage stamp 5000-mark.jpg The great inflation had begun. Officially on August 24, 1923. In September 1923, another stamp of 100.000 Marks was issued, but by then it was impossible to keep track. A sarcastic joke from that time was that someone boarded a tram at a stop in Berlin and paid for a ticket for a ride costing a few thousand Marks, but people boarding three stops further on had to pay ten times as much! Therefore, no new stamps were printed; instead, existing stamps were overprinted with the value in numbers and letters. The numbers had become far too large. postage stamp 100000-mark.jpg On August 24, 1923, a stamp with an overprint of 8.000 Marks on 30 Pfennigs was issued. postage stamp 8000-mark.jpg On September 20, 1923, an overprint of 250.000 Marks on 500 Marks. postage stamp 250000-mark.jpg On October 1, the overprint 400.000 Mark was printed on stamps from 15 to 40 Pfennig, postage stamp 400000-mark.jpg immediately followed by values ​​of 800.000 Mark and 2.000.000 Mark. jostzegel 800000-mark.jpg postage stamp 2000000-mark.jpg Sheets of unfinished stamps were quickly perforated, sometimes with very poor results. But it didn't stop there. By then, the stock of old stamps without overprints had run out, and new stamps were printed. Because of the rosette background, the stamps were soon nicknamed "basket lid stamps"—leaky as a sieve? Thus, stamps of 100.000.000 Marks (one hundred million) followed on October 30, 1923, and 500.000.000 Marks (five hundred million) on November 5, 1923. postage stamp 100-000-000-mark.jpg postage stamp 500-000-000-mark.jpg On November 11, 1923, an amount of 5.000.000.000 Marks (five billion) had to be paid, and on November 22, 1923, already 50.000.000.000 Marks (fifty billion). postage stamp 5000000000-mark.jpg postage stamp 50000000000-mark.jpg They did not go any higher. On November 30, 1923, a large-scale monetary reform was announced with financial assistance from the United States, and on December 1, 1923, a new series of stamps appeared. These incorporated the numbers 3 and 5, and the digits 10, 20, 50, and 100 into a new monetary value: the Rentenmark. Named after the Deutschen Rentenbank, founded in October 1923. The exchange rate was set at 1 : 1.000.000.000.000 Mark! The Rentenmark or Rentenpfennig was indeed printed on coins, but not on stamps. postage stamp 10-rentenpfennig.jpg On August 30, 1924, the Rentenmark replaced by the Reichsmark and the financial market had become virtually stable at that moment. 1-rentenpfennig-1924-a-168p.jpg 5-rentenpfennig-1924-a-168p.jpg What happened after that is another story. A nice theme to collect? Stamps with enormously high values? Other countries have also experienced periods of inflation. Which country would have had the highest value on a stamp?

5 comments

  1. Hi. I still have an album with the above stamps myself and I'm wondering if you might have any idea if it's still worth anything. Kind regards

    Martin

  2. You can't know everything, but a lot has already been written about inflation in Eastern Europe, and very recently at that. See the website of Eastern Europe Philately:

    http://www.fcoe.nl/

    Periods of inflation and monetary reforms in Eastern Europe
    Pages 1-8 – Albania 1913-2004 – Dick Knaap and Olav Petri
    Page 9-18 – Danzig 1923 – Sijtze Reurich
    Page 19-26 – Danzig 1939 – Sijtze Reurich
    Page 27-30 – Estonia 1928 – Sijtze Reurich
    Page 31-43 – Estonia 1991-1993 – Sijtze Reurich
    Pages 44-54 – Hungary 1900 – Marcel de Jong
    Pages 55-84 – Hungary 1920-1926 – Marcel de Jong
    Pages 85-91 – Hungary 1920-1926 bb – Marcel de Jong
    Pages 92-101 – Hungary 1945-1946 bb – Marcel de Jong
    Page 102-108 – Latvia 1923 – Sijtze Reurich
    Pages 109-124 – Ukraine 1992-1997 – Edwin Muller
    Pages 125-129 – Poland 1918 – Ton Welvaart, Jan Jansen and Marek Zbierski
    Pages 130-132 – Poland 1922-1924 – Ton Welvaart, Jan Jansen and Marek Zbierski
    Pages 133-136 – Poland 1950 – Ton Welvaart and Jan Jansen
    Pages 137-147 – Poland 1995 – Ton Welvaart and Jan Jansen
    Pages 148-152 – Poland 1974-1995 bb – Marcel de Jong
    Pages 153-162 – Poland-Germany – 1916-1923 – Jeroen van der Weide and Ton Welvaart
    Pages 163-169 – Romania – 1945-1947 – Gábor Visnyovszki
    Pages 170-178 – SHS – 1918-1921 – Henk Buitenkamp
    Page 179-183 – Soviet Union 1961 – Sijtze Reurich
    Page 184-??? – Czechoslovakia 1953 – Jan Verleg

    Year: 2007.
    Price: €75,00 for members/€80,00 for non-members.

  3. The highest value on a stamp…?
    Perhaps the last inflation stamp is in Hungary. On July 26, 1946, a stamp was issued with a value of 5 million adópengö. On that date, one adópengö was equal to 2 trillion (a 2 with 21 zeros!) pengö. So 5 million adópengö is equal to 5 million times 2 trillion = 10 followed by 27 zeros. 50 billion can't compete with that 😉

Leave a comment

The time at which your response becomes visible may vary by language and take up to 24 hours.

guest post