The marka (Marka polska, abbreviated mp, plural marki, marek) was the currency of the Kingdom of Poland and of the Republic of Poland between 1917 and 1924. It was subdivided into 100 fenigow (singular fenig), much like its German original after which it was modelled (see German mark).
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History
During the Great War, in 1915, after defeating the Russians, the Central Powers occupied the whole territory of the former Congress Kingdom of Poland and appointed two Governors General: a German (Hans Hartwig von Beseler) in Warsaw and an Austro-Hungarian (Karl Kuk) in Lublin. The civil administration of the country was laid into the hands of imported German (mostly Prussian) and Austrian (mostly Polish) officials. Four currencies circulated: the Russian ruble, the German Papiermark, the German Occupation mark and the Austro-Hungarian krone. On December 9 the following year, after consultations with the Austrians, the chief of the German Administration, Wolfgang von Kries proclaimed the foundation of a new bank, called the Polish Loan Bank (Polska Krajowa Kasa Pożyczkowa) and the creation of a new currency unit, the marka, equivalent to the German mark. The stability of the new currency was guaranteed by the German Reichsbank up to the amount of 1 billion mark. In 1917 new coins (1, 5, 10 and 20 fenigow) and banknotes (½, 1, 2, 5, 10, 20, 50, 100, 500 and 1000 marek) were introduced and started to replace all the previously-used currencies. All the banknotes were white with the White Eagle of Poland on a red field. At the time of the Armistice of November 11, 1918 there were already 880 million marek in circulation. The new Polish government decided to retain the marka as currency and to allow the Loan Bank to continue its existence. The following year the German-made banknotes were replaced with new ones in circulation, featuring Polish historical motifs. The notes of 10, 20 and 500 marek displayed a picture of Queen Jadwiga, the notes of 5, 10, 100 and 1000 marek showed Tadeusz Kościuszko. A silver coin of 50 marek was planned but never issued due to the galopping inflation. Only one such coin is known to be in existence today. The country, devastated after 123 years of partitions and 5 years of war, entered a series of armed struggles, which crippled the economy even more. In 1920, during the Polish-Bolshevik War, new banknotes of ½ marki with Kosciuszko and 5000 marek with both the Queen and Kosciuszko came into use. There were now 5 billion marek in circulation. However, the following years the crisis deepened and by 1922 a truly ruinous inflation began. By then there were 207 billion marek in circulation. It was necessary to print notes of 10,000 and 50,000 marek. At the beginning of the following year the inflation gained even more momentum and speed, and notes of 100,000, 250,000, 500,000 and 1 million marek were introduced, only to be followed by notes of 5 and 10 million marek later that year. At that moment the financial reform of Władysław Grabski started. On April 14, 1924 the Bank Polski was proclaimed as the new central bank of Poland. The marka was exchanged for a new, gold-based currency, the złoty, at the rate of 1,800,000 marek to 1 złoty. One American dollar was then worth 5.18 złotych -- or 9,324,000 Polish marek.
Exchange rates
Exchange rate of 1 United States dollar to Polish marka:
- 1919 - 90
- 1921 - 6000
- May 1923 - 52,000
- July 1923 - 140,000
- Beginning of November 1923 - 2,000,000
- End of November 1923 - 5,000,000
- January 1924 - 9,300,000
References
- Tadeusz Kałkowski, Tysiąc lat monety polskiej, Cracow 1981
- Paweł Zaremba, Historia dwudziestolecia 1918-1939 (1 - 2), Paris 1981
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