Hyperinflation Gone Mad: When German Children Made Kites From Money

National Numismatic Collection, National Museum of American History, via Wikimedia Commons // Public Domain
National Numismatic Collection, National Museum of American History, via Wikimedia Commons // Public Domain

Early in 1922, the German Papiermark—the currency of the Weimar Republic—was valued at around 200 Marks to the U.S. dollar. By November 1923, that figure had risen to 4,200,000,000,000. Put another way, if you had just U.S. $1 to your name, in 1920s Germany you would have been a multi-trillionaire.

How did such an absurd exchange rate come about? Precisely what set the wheels of hyperinflation and devaluation in motion in post-war Germany is debatable, but arguably the entire process began almost a decade earlier, at the dawn of the First World War.

With its efforts to secure victory in Europe in full swing, the German government opted to suspend the Mark’s gold standard—the relationship between the value of currency and the price of gold—and fund its on-going and ever-enlarging military operations by borrowing. It was an immense risk, solely reliant on one thing to succeed: Germany had to win the war.

Victory in the war, Germany presumed, would solve everything. The annexation of other European nations and their economies and assets, as well as the costly war reparations paid by the soon-to-be-defeated Allies, would together offset all the economic consequences of such a risky strategy. But unfortunately for Germany, the plan backfired. They lost the war, and by 1918, the Mark had already almost halved in value and Germany had accrued colossal international debts.

Not only that, but being on the losing side of the war meant that the costly punitive reparations the German government had intended to profit from were now being imposed on them. This only served to worsen things throughout the early 1920s, and when the government began to buy foreign currency at any price just to meet its financial obligations, the value of the Mark collapsed ever further. Inflation soon spiraled into hyperinflation—eventually peaking at a rate of 3,250,000 percent per month—and Germany quickly fell behind on its repayments.

In response, France and Belgium took control of the country’s industrial heartland, the Ruhr, in 1923, but that only served to add fuel to the fire.

The German government called on workers in the Ruhr to put down tools and resist the occupation, promising that while doing so they would continue to receive a wage from the state. The strikes, protests and campaign of passive resistance that followed all but ground industry in the Ruhr to a halt, crippling the German economy even further, while the occupation sparked a new international crisis.

For some, the occupation of the Ruhr was considered controversial and a punitive step too far. Tensions grew between the French (who had their own post-war economic problems) and the British (some of whom grew sympathetic to Germany’s position, and saw the French response as a new imperialist threat). Finally, with growing pressure from the United States, an interim agreement was drawn up by future Vice President Charles G. Dawes that lowered and staggered Germany’s reparation payments. The Ruhr occupation was brought to an end, briefly kick-starting the German economy, and for his work on the crisis Dawes was the co-recipient of the 1925 Nobel Peace Prize (the other winner was Sir Austen Chamberlain). But in the long term, the Dawes Plan failed—and even by the time it was implemented the damage to the German economy had already been done.

To combat the French occupation, the Reichsbank was being forced to churn out ever more banknotes just to function on a daily basis. Printing presses were commandeered by the state for no reason other than to print ever greater quantities of cash. In May 1923, there were 8.6 billion Marks in circulation in the country; by November there were 400 quintillion. In response, the value of the Papiermark spiraled out of control.

As the numbers on German bank notes soared to 50 trillion, daily life for the German people became increasingly absurd.

A man using money as wallpaper.
Bundesarchiv, Bild / Pahl, Georg via Wikimedia Commons // CC-BY-SA 3.0 DE

Paper currency was by now next to worthless. Employees collected their wages in wheelbarrows and suitcases more valuable than the money inside them. Banknotes were used as wallpaper and kindling to light stoves. Children played with bundles of cash in the street, cut up piles of Marks to make confetti and paper chains, and even crafted kites out of money. Shopkeepers shunned currency altogether and switched to bartering to maintain the value of their goods and services. Astonishingly, the price of one egg in 1923 would have bought you 500 billion eggs just five years earlier.

Waiters in cafés and restaurants were now reportedly mounting tables to announce price changes to their menus every 30 minutes; by the summer of 1923, patrons might sit down to a meal in a German restaurant only to find they couldn’t afford it half an hour later. One famous anecdote involves a gentleman who drank two cups of coffee, priced at 5000 Marks each, at a coffee house in Hamburg, only to be presented with a bill for 14,000 Marks. When he queried the cost with his waiter, he was told that he should have ordered the two drinks at the same time—the price had nearly doubled in the time it had taken him to drink one cup.

The crisis finally abated in the winter of 1923, when the German government introduced a new currency, the Rentenmark, backed up by the mortgage value of agricultural and commercial land. Valued at the old rate of 4.2 to the dollar, one Rentenmark was ultimately equivalent to 1,000,000,000,000 of the Weimar’s Papiermarks, and returned the Mark to the same exchange rate it had been at before the war. The “Miracle of the Rentenmark,” as it was hailed, brought to an end one of the most extraordinary periods of hyperinflation in history.

This Gorgeous Vintage Edition of Clue Sets the Perfect Mood for a Murder Mystery

WS Game Company
WS Game Company

Everyone should have a few good board games lying around the house for official game nights with family and friends and to kill some time on the occasional rainy day. But if your collection leaves a lot to be desired, you can class-up your selection with this great deal on the Vintage Bookshelf Edition of Clue for $40.

A brief history of Clue

'Clue' Vintage Bookshelf Edition.
WS Game Company.

Originally titled Murder!, Clue was created by a musician named Anthony Pratt in Birmingham, England, in 1943, and he filed a patent for it in 1944. He sold the game to Waddington's in the UK a few years later, and they changed the name to Cluedo in 1949 (that name was a mix between the words clue and Ludo, which was a 19th-century game.) That same year, the game was licensed to Parker Brothers in the United States, where it was published as Clue. Since then, there have been numerous special editions and spinoffs of the original game, not to mention books and a television series based on it. Most notably, though, was the cult classic 1985 film Clue, which featured Eileen Brennan, Tim Curry, Madeline Kahn, Christopher Lloyd, Michael McKean, Martin Mull, and Lesley Ann Warren.

As you probably know, every game of Clue begins with the revelation of a murder. The object of the game is to be the first person to deduce who did it, with what weapon, and where. To achieve that end, each player assumes the role of one of the suspects and moves strategically around the board collecting clues.

With its emphasis on logic and critical thinking—in addition to some old-fashioned luck—Clue is a masterpiece that has stood the test of time and evolved with each decade, with special versions of the game hitting shelves recently based on The Office, Rick and Morty, and Star Wars.

Clue Vintage Bookshelf Edition

'Clue' Vintage Library Edition.
WS Game Company

The Vintage Bookshelf Edition of Clue is the work of the WS Game Company, a licensee of Hasbro, and all the design elements are inspired by the aesthetic of the 1949 original. The game features a vintage-looking game board, cards, wood movers, die-cast weapons, six pencils, an ivory-colored die, an envelope, and a pad of “detective notes.” And, of course, everything folds up and stores inside a beautiful cloth-bound book box that you can store right on the shelf in your living room.

Clue Vintage Bookshelf Edition is a limited-release item, and right now you can get it for $40.

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8 Facts About the Stonewall Riots

Monica Schipper, Getty Images for Airbnb
Monica Schipper, Getty Images for Airbnb

A pivotal moment in civil rights took place the week of June 28, 1969. That day, police raided a gay bar called the Stonewall Inn in New York City's Greenwich Village. The move was a clear condemnation by law enforcement officials of the city's gay population. The volatile riots that followed sparked a new sense of urgency about demanding tolerance for persecuted communities.

1. The Stonewall Inn was operated by an organized crime organization.

In the 1960s, homosexuality was under fire from all directions. Because it was perceived as being amoral, individuals caught engaging in so-called "lewd behavior" were arrested and their names and home addresses were published in their local newspapers. Homosexual activity was considered illegal in most states.

As a result, being part of the LGBTQ community in New York was never without its share of harassment. Several laws were on the books that prohibited same-sex public displays of affection; a criminal statute banned people from wearing less than three “gender appropriate” articles of clothing. Commiserating at gay-friendly bars was also problematic, because officials often withheld liquor licenses from such establishments.

This kind of persecution led to members of the mafia purchasing and operating gay-friendly clubs. It was not an altruistic endeavor: The mob believed that catering to an underserved clientele by bribing city officials would be profitable, and it was. The Genovese crime family owned the Stonewall Inn on Christopher Street, which became known for welcoming drag queens and giving homeless teenagers and young adults a place to gather. Often, these places got tipped off before a raid took place so they could hide any liquor. But the June 28 raid at the Stonewall Inn was different: No one was tipped off.

2. Police had to lock themselves inside the Stonewall Inn to barricade themselves from the crowd.

During the June 28 raid, police (who were alleged to have targeted Stonewall for its lack of a liquor license and the owners' possible blackmail attempts on gay attendees) confiscated alcohol and arrested 13 people in total, some for violating the statute on inappropriate gender apparel. After some patrons and local residents witnessed an officer striking a prisoner on the head, they began lashing out with anything within arm’s reach—including bottles, stones, and loose change. A number of people even pulled a parking meter from the ground and tried to use it as a battering ram.

The police, fearing for their safety, locked themselves inside the Stonewall Inn as the angry mob outside grew into the thousands. Some were attempting to set the property on fire. Reinforcements were eventually able to get the crowd under control—for one night, at least.

3. The situation got worse on the second night of the Stonewall riots.

After getting the crowd to disperse, police likely thought the worst of their problems was over. But on the second night, the Stonewall Inn reopened and another mob formed to meet the police response. Both sides were more aggressive on the second night of the Stonewall Uprising, with residents and customers forming a mob of protestors and police using violent force to try and subdue them.

“There was more anger and more fight the second night,” eyewitness and participant Danny Garvin told PBS’s American Experience. “There was no going back now, there was no going back … we had discovered a power that we weren’t even aware that we had.”

4. Protestors set their sights on The Village Voice.

Tempers flared again days later when The Village Voice published two articles using homophobic slurs to describe the scene at the Stonewall Inn. Angry about the demeaning coverage, protestors once again took to the streets, with some descending on the offices of the Voice, which were located just down the street from the Stonewall.

5. Not all of the protests were violent.

During the demonstrations—which some observers later referred to as an “uprising”—some protestors opted for a nonviolent approach in order to be heard. Eyewitnesses reported residents forming Rockettes-style kick lines that performed in front of stern-faced policemen. Others sang or participated in chants like “Liberate the bar!”

6. The Stonewall Riots led to New York’s first gay rights march.

Once the riots had subsided, protestors were filled with motivation to organize for their rights. A year after the riots, residents began marching on Christopher Street and Sixth Avenue. The date, June 28, was dubbed Christopher Street Liberation Day. Thousands of people marched the streets while thousands of other people lined up alongside them to protest the treatment of the LGBTQ community at the hands of law enforcement officials and society at large.

Some members of a New York Police Department who had confronted protestors during the Stonewall Riots one year before were now being ordered to protect those same protestors during the walk. Other marches took place in other cities, marking the country's first widespread demonstration for gay rights.

7. The Stonewall Inn is now a national monument.

Since the events of 1969, the Stonewall Inn has been considered an important and historic venue for the new era of gay rights. On June 24, 2016, President Barack Obama made that official when he designated the Stonewall Inn and the surrounding area a National Historic Landmark under the care of the National Park Service. Many credit the Stonewall Uprising with the subsequent surge in gay rights groups. One participant, Marsha P. Johnson, started Street Transvestite Action Revolutionaries (STAR) the following year, an organization devoted to helping homeless LGBTQ youth.

8. The Stonewall Inn is still standing.

Following the riots, the Stonewall’s patrons were still faced with police harassment and were growing uncomfortable with the mob affiliation. Months after the event, the Stonewall became a juice bar before subsequent owners tried operating it as a bagel shop, a Chinese restaurant, and a shoe store in the 1970s and 1980s. New owners renovated the building in 2007.

Today, the Stonewall is once again operating as a bar and club at 53 Christopher Street in Manhattan. Naturally, everyone is welcome.

Note: An earlier version of this article misidentified Marsha P. Johnson's organization as Street Transgender Action Revolutionaries. The correct name is Street Transvestite Action Revolutionaries.