Weimar Republic, Monetary coupons, regional. Notgeld, 1919-1923 | Los Angeles Museum of the Holocaust

Notgeld (German for "emergency money" or "necessity money") refers to money issued by an institution in a time of economic or political crisis. The issuing institution is usually one without official sanction from the central government. This occurs usually when sufficient state-produced money is not available from the central bank. Most notably, notgeld generally refers to money produced in Germany and Austria during World War I and the Interbellum. Issuing institutions could be a town's savings banks, municipality and private or state-owned firms.

German regional financial authorities (until 1923)

Notgeld was a mutually-accepted means of payment in a particular region or locality, but notes could travel widely. Notgeld is different from occupation money that is issued by an occupying army during a war.

The first large issue of Notgeld started at the outbreak of the First World War. Due to inflation—caused by the cost of the war—the value of the material that a coin was minted from was higher than the value of its denomination. Many institutions started to hoard coins. Additionally, the metals used to mint coins were needed for the production of war supplies. This caused a massive shortage of metal for coinage, which was remedied by issuing banknotes in small denominations.

As these banknotes were very colorful, they soon became a target for collectors. As the issuing bodies realized this demand, they continued to issue these notes beyond their economic necessity up until 1922. Quite often the validity period of the note had already expired when the notgeld was issued. The sets that were issued in 1920 and predominantly in 1921 were usually extremely colorful and depicted many subjects, such as local buildings, local scenes and local folklore/tales. Many series tell a short story, with often whimsical illustrations. These sets (that were not actually issued to go into circulation) were known as Serienscheine (a piece issued as a part of a series or set). As they were never issued to go into circulation, they are usually found in uncirculated condition, and are still collected by notgeld collectors all over the world.

In 1922 inflation started to get out of control in Germany, leading to the German hyperinflation. Until 1923, the value of the mark deteriorated faster and faster and new money in higher denominations was issued constantly. The Central Bank could not cope with the logistics of providing the necessary supply of money, and Notgeld (Papiermark) was issued again—this time in denominations of thousands, millions and billions of Marks. Because the Mark became so unstable, Notgeld was also issued in the form of commodities or other currencies: wheat, rye, sugar, coal, wood, natural gas, electricity, gold, or US dollars. These pieces were known as Wertbeständige, or notes of "fixed value".

There were also notgeld coins that were made of compressed coal dust. These became quite rare, as most of them were eventually traded with the coal merchant issuer for actual coal and some may have even been burned as fuel.

Author: Dr. Vladimir Melamed

Deficiency of Central Bank monetary reserves
Documents in German language
Hyperinflation in Germany in 1923, issuance of more and more notgeld
Imagery of the Notgeld, local landmarks, Germany and Austria
Imperial Germany, inflation during the First World War
Inflation and hyperinflation the post First World War Germany and Austria
In the aftermath of outbreak of the First World War, issuance of notgeld
Issuing institutions of Notgeld, not a Central Bank, Germany, Austria
Notgeld (German "emergency money") issued by an institution not authorized for money emission
Notgeld, a mutually accepted means of payment in regions and localities, Germany, Austria, 1920s
Notgeld, Germany, necessity money, issued as coupons by regional authorities, also in Austria
Weimar Republic, inflation of 1919 -- 1923