German Bond 1919 200 Marks uncancelled, Schuldverschreibung Verbandes Gross Berlin.Bond is printed on watermarked paper which validates the bond's authenticity.
Nineteen of the original 20 coupons, each with embossed seal - (not visible on scanned image) - which further validates its authenticity. Coupons on separate sheet included, full sheet did not fit in scanner. Imprinted red tax seal " Reichs- Stempel -Abcabe-Versreuert", not a cancellation stamp. Well intended Treat of Versailles of 1919 had disastrous effects. In order to pay the large costs of World War I, Germany suspended the convertibility of its currency into gold when that war broke out. Unlike France, which imposed its first income tax to pay for the war, the German Kaiser and Parliament decided without opposition to fund the war entirely by borrowing, a decision criticised by financial experts like Hjalmar Schacht even before hyperinflation broke out. The result was that the exchange rate of the Mark against the US dollar fell steadily throughout the war to 8.91 Marks per dollar. The Treaty of Versailles, however, accelerated the decline in the value of the Mark, so that by the end of 1919 more than 47 paper Marks were required to buy one US dollar. It is sometimes argued that Germany had to inflate its currency to pay the war ... read more