Mark (currency) facts for kids

Quick facts for kids Mark (currency)
1 German gold mark, 1875
User(s)	Various
Subunit
1⁄100	subunit
Plural	Marks

The mark was a type of currency or a way to count money in many countries. Its name comes from the mark unit of weight. This word, mark, comes from old Germanic languages and was used in Latin around the 800s.

A mark was a measure of weight, mostly for gold and silver. It was often equal to about 8 troy ounces (250 g) (ounces). But its exact weight changed a lot during the Middle Ages.

As of 2022, the only currency still called "mark" is the Bosnia and Herzegovina convertible mark.

What is the Mark Currency?

The "mark" has been the name for many different currencies throughout history. It was used in various forms across Europe. Sometimes it was a real coin, and other times it was just a way to keep track of value.

Here are some of the places where the mark was used:

• Germany: Many different marks were used in Germany over centuries.
  • Since the 11th century, the Kölner Mark was used in Cologne.
  • In 1319, the Sundische Mark was made in Stralsund and other towns in Pomerania.
  • From 1502, the Lübische Mark became a standard coin for several North German cities.
  • The Courant Mark, also from 1502, was another standard coin in North German cities. It was a step towards the later Reichsmark and Deutsche Mark.
  • From 1619 to 1873, the mark banco was used in Hamburg.
  • The German gold mark was the official money of the German Empire from 1873 to 1914.
  • During and after World War I, Germany used the paper mark (1914–1923).
  • Then came the Rentenmark (1923–1948).
  • And the Reichsmark (1924–1948).
  • After World War II, the Allies used a military mark (1944–1948).
  • The Saar mark was used briefly in 1947.
  • East Germany had its own East German mark (1948–1990).
  • West Germany used the German mark (Deutsche Mark or D-Mark) from 1948 to 2002.

• Other Countries:
  • The merk Scots was an old silver coin in Scotland.
  • Sweden used the Swedish mark from 1532 to 1776, but it was a counting unit even earlier.
  • Finland used the Finnish markka from 1860 to 2002.
  • New Guinea had its own New Guinean mark from 1884 to 1911.
  • German South West Africa used the German South West African Mark (1884–1915).
  • South West Africa also had a mark from 1916 to 1918.
  • Poland used the Polish mark from 1917 to 1924.
  • Estonia used the Estonian mark from 1918 to 1927.
  • Today, the Bosnia and Herzegovina convertible mark has been used since 1998.

The Mark in England and Scotland

In England, the "mark" was never a coin you could hold. It was only a way to count money, like saying "a dozen" instead of having a "dozen" coin. It probably came from the Danes in the 900s.

At first, it was worth 100 pence. After the Norman Conquest in 1066, it became worth 160 pence. This was equal to 13 shillings and 4 pence, or two-thirds of a pound sterling.

In Scotland, there was a real silver coin called the merk Scots. It was first made in 1570. Its value changed over time, starting at 13 shillings and 6 pence.

The Mark in Germany

Early Use of the Mark

Originally, the German word Mark meant a specific weight, about 234 g (8.3 oz). The mark used in Cologne (called the Cologne mark) was very important. It helped set the value for gold and silver coins in the Holy Roman Empire. For example, a silver coin called the Reichsthaler was made so that 9 of them came from one Cologne mark of pure silver.

In northern Germany, especially in cities like Hamburg and Lübeck, the mark was often used as a way to count money. It was worth one-third of a Reichsthaler. Actual mark coins were rare. Instead, people used schilling coins. Sixteen schillings were equal to one mark.

To stop people from making fake or bad coins, the Hamburger Bank was started in 1619. It was like the Bank of Amsterdam. These banks created a stable way to count money. The Hamburg way was called the mark banco. You could put gold or silver into the bank and get credit in your account. No actual coins or banknotes were given out. Instead, people used their credit to pay others or by writing special payment notes called bills of exchange. These notes were trusted and used as payment. This system made the currency very stable.

The Mark in the 1800s

After Germany became one country in 1871, it chose the German gold mark as its official currency in 1873. It was simply called the "mark." The name came from the old mark banco.

At first, older coins and banknotes from different German states were still used. They were given a fixed value compared to the new gold mark. This was similar to how the euro was introduced in Europe years later. New gold mark coins were first made in 1871. They slowly replaced the older coins. The old mark banco was worth the same as the new gold mark. The Bank of Hamburg became part of the new Reichsbank (Germany's central bank, started in 1876). This bank then printed banknotes for the gold mark.

The Mark in the 1900s

In 1914, the Reichsbank changed its rules. It started lending money without needing strong guarantees. This was done to pay for World War I. Because of this, the gold mark became weak. People started calling it the paper mark (Papiermark).

After the war, the government kept printing too much money. This led to very high prices, known as hyperinflation, in 1923. The paper mark became almost worthless.

In late 1923, a new currency called the Rentenmark was introduced. One Rentenmark was worth a huge amount of paper marks (1 trillion!). This new money was given out by a new bank, the Rentenbank. It was backed by claims to real estate, which made people trust it more.

In 1924, the Reichsbank stopped giving out unlimited loans. It linked its new currency, the Reichsmark, to the stable Rentenmark. The Reichsbank controlled how much money it lent. This kept the Reichsmark at the same value as the Rentenmark. Both currencies were used at the same time and were often called RM.

The original plan was to stop using the Rentenmark by 1934. However, the government decided to keep it because people trusted it. But the government then printed too much of both currencies to pay for new projects and military spending. By 1935, laws were needed to control prices, wages, and rents to hide the inflation. Huge extra taxes were also collected. When World War II started, the government put in place general price controls and rationing. This meant inflation was hidden, but people could see it in the rising prices on the black market.

During the war, the German economy also used resources taken from occupied countries. By the end of the war, there was a huge amount of banknotes and coins in circulation. This caused very high prices on the black market.

From 1944, the Allied forces printed their own occupation marks (also called military marks). They said these marks were worth the same as the Rentenmark and Reichsmark. Billions of military marks were printed for the occupying forces to buy things and pay soldiers. In June 1948, these military marks were stopped as part of new currency changes in West and East Germany.

In June 1947, the French forces in the Saar Protectorate introduced the Saar mark. It was also worth the same as the Rentenmark and Reichsmark. In November 1947, it was replaced by the Saar franc.

On June 21, 1948, the Deutsche Mark (German mark) was introduced in the western parts of Germany, which became West Germany.

Two days later, on June 23, 1948, the Soviet-controlled zone (which became East Germany) also introduced its own Deutsche Mark. People often called it the East German mark or Ostmark. Later, its official name changed to Mark der Deutschen Notenbank (1964–1967) and then Mark der DDR (1968–1990). When Germany became one country again in 1990, the East German mark was replaced by the West German mark.

The Mark and the Euro

The German mark was replaced by the euro. First, it became an accounting currency on January 1, 1999. The exchange rate was fixed: 1 euro was worth 1.95583 marks. After this, mark notes and coins represented the euro at that rate. They remained legal money until January 1, 2002, when euro notes and coins fully took over.

Germany still makes its own German euro coins, but all euro coins can be used in any country that uses the euro.

The Bosnia and Herzegovina convertible mark is still used today. It officially replaced the German mark as the main currency in Bosnia and Herzegovina after the Bosnian war. It was set to be worth the same as the German mark (1:1). When the German mark was replaced by the euro, the Bosnian mark was also linked to the euro at the same rate.

See Also

• Mark (unit)
• Coins of the pound sterling
• Markland