The Seeds of Evil: Germany 1919 - 1933.

The Reichsmark

In August of 1924 the Rentenmark was replaced by the Reichsmark, which was backed up by the German Gold Reserve, which had to be maintained at 30% of the value of all Reichsmark in circulation. This was combined with a range of new taxes that increased the tax burden of companies and individuals alike, reducing their spending power and enabling the government to reinvest a larger proportion of the nations wealth.

This constitutes quite a large change in the way that the economy was operated. Companies that were well organised, had sound business sense and were well managed would prosper. Those that had relied on credit would suffer – the number of companies going bankrupt in Germany rose from 233 in 1923 to over 6000 in 1924. This resulted in the economy being more streamlined and efficient, success was possible but relied, perhaps, on prudence and careful planning.

The Treaty of Versailles

Germany 1919 - 1923

Weekly Newsletters