Schatzanweifung des Deutfchen Reichs - 1923 dated 1,000,000 German Marks Bond - Germany
Inv# FB6384 Bond
1,000,000 Mark 8-15% Bond with various number of coupons attached. Other denominations available.
The Schatzanweisung (Treasury Note) was a crucial debt instrument used by the German state, particularly during the German Empire, the Weimar Republic, and the Third Reich. These short-to-medium-term promissory notes were issued by the Treasury to cover budgetary deficits or fund specific state projects. While they resembled modern government bonds, their significance grew during the hyperinflation crisis of the early 1920s. To finance World War I and subsequent reparations, the Reichsbank discounted vast quantities of these notes, effectively monetizing national debt and flooding the economy with paper money. This led to the complete collapse of the currency’s value.
Beyond their economic consequences, Schatzanweisungen are now studied by historians and numismatists as historical artifacts of political transition. During the National Socialist era, specialized versions like the Öffa-Wechsel or Mefo-bills were employed as a form of “shadow financing” to fund secret rearmament without appearing in the official state budget. These certificates were often intricately engraved and adorned with official seals, reflecting the bureaucratic aesthetic of the time.
The German Reich, established between 1871 and 1945, was a unified German nation-state under Otto von Bismarck’s leadership. Initially known as the Imperial Period, it experienced rapid industrialization and colonial expansion. However, this era ended with World War I, leading to the formation of the democratic Weimar Republic in 1919.
The final chapter began in 1933 with the rise of the Nazi Party, which established the Third Reich. Under Hitler’s rule, the state dismantled democratic institutions and pursued aggressive expansionist policies that triggered World War II. This period was marked by systemic violence and the Holocaust, resulting in millions of deaths and the near-destruction of European infrastructure. After Germany’s unconditional surrender in 1945, the Reich ceased to exist, leading to the division of Germany during the Cold War.
A bond is a document of title for a loan. Bonds are issued, not only by businesses, but also by national, state or city governments, or other public bodies, or sometimes by individuals. Bonds are a loan to the company or other body. They are normally repayable within a stated period of time. Bonds earn interest at a fixed rate, which must usually be paid by the undertaking regardless of its financial results. A bondholder is a creditor of the undertaking.
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