GERMANY'S HYPERINFLATION OF 1923

After the First World War, the value of the German Mark steadily deteriorated, largely as a result of reparations payments and the savage penalties imposed on German trade.  On April 27, 1921 the Allied Reparations Commission fixed the total war reparations to be paid by Germany at 132,000,000,000 gold Marks. 

Faced with budgetary deficits, the German government followed a practice of issuing more money to meet expenses. The result was a runaway inflation more severe than that experienced in any other part of Europe.  During 1922, the value of the Mark in US Dollars fell from 162 marks to more than 7,000 Marks (the pre-1914 rate had been 4.2 Marks to the US Dollar).

By July 1, 1923 the Mark had fallen to 160,000 to the Dollar; by November 20, 1923 it was down to 4,200,000,000,000 (4.2 trillion) Marks to the Dollar. Barter replaced other commercial dealings and food riots broke out.
 

Postal Period 21
October 20 to October 31, 1923
FOREIGN LETTER (AUSLAND BRIEF)
1st weight - 20g
Rate: 30 Million Marks

Commercial cover to the U.S.A. on October 31, 1923 (last day of this rate) with a total of 30 Million marks paying international letter rate set as of October 20.
Six copies of 5 Million Marks issue (Michel 316).

Postal Period 25
November 20 to November 25, 1923
FOREIGN LETTER (AUSLAND BRIEF)
1st weight - 20g
Rate: 80 Billion (Milliarden) Marks

Commercial cover to Teplitz, Böhmen (now Czech Republic) on November 20, 1923 (first day of this rate) with a total of 80 Billion marks correctly paying foreign letter rate.
Eight copies of 10 Milliarden Marks issue (Michel 328).

The mark was finally revalued on Dec 1, 1923 at the rate of 1,000,000,000,000 old marks to 1 new mark, or one trillion to one.