The Explorers' Club, № MXLII

Operation AXIOM: Between the Wars—Hyperinflation, Epilogue
30 August 1924: The Reichsmark (ℛ︁ℳ︁) was introduced, replacing the Rentenmark (RM) at a ratio of 1:1, retaining the same exchange rate with the United States dollar ($), 4.2:1 ℛ︁ℳ︁ to $; Papiermark (ℳ) were exchangeable until July 1925 at a rate of 1,000,000,000,000:1 ℳ to ℛ︁ℳ︁; thus, Germany returned to the gold standard for the first time since the outbreak of the Weltkrieg in August 1914.

The Wayback Machine Tour of Hyperinflation
"The Explorers' Club," № DCCXXIII: From Goldmark to fiat currency Papiermark (Part I)
"The Explorers' Club," № DCCCXCII: Printing Papiermark to pay war reparations (Part II)
"The Explorers' Club," № CMXXVI: The French occupy the Ruhr over war reparations (Part III)
"The Explorers' Club," № CMLXXXVIII: An attempted French protectorate in the Ruhr (Part IV)
"The Explorers' Club," № CMXCIII: The Rentenmark replaced the hyperinflated Papiermark (Part V)
"The Explorers' Club," № MXL: The Dawes Plan ended the occupation of the Ruhr (Part VI)

Lest we forget.

The Explorers' Club, № MXL

Operation AXIOM: Between the Wars—Hyperinflation, Part VI
1 September 1924: The Dawes Plan restructured & rationalized Germany's reparations payments, gave massive loans to the Reichsbank (the central bank) to stabilize the economy after hyperinflation & guarantee the new reparations schedule, & ended French & Begian occupation of the Ruhr region; the loans kicked off the "Golden Twenties" (Goldene Zwanziger), five years of prosperity in Germany.

Commentary: Charles G. Dawes, namesake of the committee of the Allied Reparations Commission that devised the Dawes Plan, won the Nobel Peace Prize in 1925, & served as Vice President of the United States under Calvin Coolidge from 1925-1929.

In the Ruhr, local control was returned to the Germans on 3 September 1924, though the last French troops would not be fully withdrawn for almost a year, 25 August 1925.

Lest we forget.

The Explorers' Club, № CMXCIII

Operation AXIOM: Between the Wars—Hyperinflation, Part V
15-20 November 1923: Hyperinflation peaked (15 November) with a ratio of 4,210,500,000,000:1 German Mark (ℳ) to United States dollar ($); the Rentenmark (RM) was introduced (20 November), backed by mortgages of agricultural & industrial land, with an exchange rate of 4.2:1, RM to $; the Rentenmark restored confidence, was accepted as legal tender & hyperinflation ceased overnight.

Lest we forget.

The Explorers' Club, № CMLXXXVIII

Operation AXIOM: Between the Wars—Hyperinflation, Part IV
21 October-28 November 1923: The Rhenish Republic—A Free & Independent Rhenish Republic was declared in Aachen; separatists stormed town halls throughout the Rhineland, supported by French & Belgian occupational forces; when separatist violence became more widespread & chaotic, the French & Belgians stomped it out; Rhenish leaders Josef Matthes & Adam Dorten fled to France.

Commentary: Both before & after the Rhenish Republic, Konrad Adenauer, the Mayor of Cologne from 1917-1933 (& best known as the Chancellor of West Germany from 1949-1963), argued for a greater degree of autonomy from Berlin for the Rhineland, though he opposed the violent Rhenish separatists.

Lest we forget.

The Explorers' Club, № CMXXVI

Operation AXIOM: Between the Wars—Hyperinflation, Part III
11 January 1923: French & Belgian troops occupied Germany's Ruhr Valley, frustrated by repeated German defaults on reparations payments of timber & coal, required under the Versailles Treaty; the Germans responded with passive resistance—labor strikes & civil disobediance—eliciting sympathy from global public opinion; hyperinflation accelerated & nationalist discontent increased in Germany.

Lest we forget.

The Explorers' Club, № DCCCXCII

Operation AXIOM: Between the Wars—Hyperinflation, Part II
July 1922: Reparations payments began in January 1921, to be made in cash & commodities; from the start, Weimar was behind on coal deliveries; the Reparation Commission would not accept fiat Papiermark, so the Germans printed ever more ℳ to purchase foreign currencies, fueling inflation; a June 1922 conference (organized by J. P. Morgan Jr.) failed; ℳ accelerated toward hyperinflation.

Lest we forget.

The Explorers' Club, № DCCXXIII

Operation AXIOM: After the World War—Hyperinflation, Part I
April-December 1919: The exchange rate between the German Mark (ℳ) & the United States dollar ($) rose alarmingly from 12:1 to 48:1; at the war's outbreak in August 1914, Imperial Germany had converted the Mark from the gold standard ("Goldmark") to a fiat currency ("Papiermark") & financed the war by borrowing; the Wiemar government accelerated printing ℳ to pay war reparations.

Lest we forget.