1960 & 1963 GERMAN EMERGENCY BANK NOTES

5 mark emergency issue, reverse

The 20th century numismatic history of Germany is extremely interesting and could provide material for dozens of articles on its coins, bank notes, and monetary policy. Two World Wars, hyperinflation, occupation by its former allies and enemies, and a division and subsequent unification have provided a fascinating picture of a country and its people. In this article we will take a look at just one item from that turbulent history: the 1960 & 1963 “Emergency” or reserve issues of West Germany.

In 1957, the Bank Deutscher Länder became the Deutsche Bundesbank, or German Central Bank, and preparations were made to issue a new series of notes that would replace both series in circulation at the time. Dated January 2, 1960, these notes would be placed in circulation at various dates during the first half of the 1960s, starting with the 20 mark in 1961. Later followed the 5, 10, 50, 100, 500, and 1,000 mark denominations.

The basic design of the issues included the portrait of a famous German on the right side of the front, based on original paintings, and various vignettes on the back, ranging from violins to castles. Virtually all denominations known were dated 1960, 1970, 1977, or 1980 (no 1,000 mark note dated 1970 was issued), but various individual varieties are known for each date. This series, known as the first Bundesbank issue, would continue to be printed until after German unification, and would not be replaced by a more modern Bundesbank issue in the early 1990s.

While these would be the only notes one would see in circulation in Germany, there were two other issues prepared. The first was prepared for West Germany outside of Berlin and is dated July 1, 1960. This series, of a different but similar design to the issued notes, contains 10, 20, 50, and 100 mark notes, designed by Max Bittrof. A second series, dated July 1, 1963, was printed for West Berlin and includes the 5, 10, 20, 50, and 100 mark notes, designed by Rudolf Gerhardt. Both series were printed as emergency issues in case the Cold War warranted a sudden currency reform. Their designs were similar to the issued notes (so that the public would accept them), but different enough that they could be quickly distinguished from the circulating notes that would have been declared defunct.

About 29 billion German marks of both of these emergency or reserve notes were printed in the 1960s and early 1970s. For the next 25 years, they would be stored in two underground bunkers, one in Frankfurt and the other one in the small town of Cochem, a quiet town of less than 5,000 located in the Rhineland. The reserve notes meant for Berlin (about 4 billion marks worth) were stored in Berlin at the Central Bank.

In the 1990s some 5 mark notes of the West Berlin series appeared on the numismatic market. The notes, all in pristine Uncirculated condition, appeared to have been stolen by somebody at the time they were supposed to have been destroyed. Very little if anything is known about the exact circumstances, but the “release” of these unissued notes was obviously not approved by the German Central Bank, which had managed to keep much of the notes secret for over 25 years (it was known that a reserve issue had been prepared in the 1960s, but exact circumstances were not known, and even the bunker in Cochem remained off limits for years after the end of the Cold War).

Initially only a few of these unissued notes appeared, but larger quantities started showing up around 2006. While this has suppressed the price of the notes on the market, the notes are not cheap, with an Uncirculated note carrying a catalog value of approximately $400. Unlike other stolen numismatic items, the German Central Bank has not demanded the notes back, although their legal ownership can be questioned. The notes are a very interesting and historical reminder of the Cold War.

To read the complete article, see:
1960 & 1963 German Emergency Bank Notes (http://news.coinupdate.com/1960-1963-german-emergency-bank-notes/)

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