Black Mountain Coins Newsletter

Currency of Uncertainty

In This Issue
Mighty Spanish Reales
Maria Teresa Thaler
WWII U.S. Liquor Ration
German Notgeld
Hyperinflation Currency
WWII Occupation Money
Spanish Reales

       Spanish silver, especially those coins minted in Mexico City and at the Potosi Mint in Bolivia, were long the dominant coinage of the New World and of international trade. The first Dollar Coins of the United States were simply Mexico City 8 Reales Coins. We're all familiar with terms derived from the long usage of these coins, though we may not be aware of their parentage. "Pieces of Eight" is obvious enough as a reference to the 8 Reales coins Spain minted, but the fractionalized use of these coins was literal. 2 bits referred to 2 pie-shaped cuts from an 8 Reales Coin. Our very term "Real" (meaning "genuine" or "sincere") is derived from past reliance on the Spanish Real as the single-most trustworthy currency. You can see then how much of our REALITY, even today, is determined by our forebearers' preference for Spanish silver.

Austrian 1780 Maria Theresa Thaler

       The 1780 Maria Theresa Taler is often refered to as the worlds most famous silver coin. In its heyday it was the most widely accepted silver coin in the Middle East and North Africa, becoming an unofficial currency in many lands. The 1780 Taler was so established that it remained the most trusted money in North Africa into the 20th century. Thanks to the laws of the Austrian Republic and the decree of 1857, the 1780 Maria Theresa Taler has continued to be struck and remains an official coin of trade in the world to this day.    

WWII Liquor Ration Card

State of Ohio - WWII - Liquor Ration Document & Purchase Record - Includes Sales Tax Stamps, 1943

 

Price: $19.99

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     Born amidst the devastating hyperinflation and collapse of the Weimar era German Mark, Notgeld represented a fallback back to the provincial and German States currencies long in circulation prior to the dominance of the Imperial coinage of the German Reich. German Notgeld represents not just a fallback amidst collapse, but also showed the the local and regional vitality and endurance in design and in the commercial world. The wide range of themes evident in this period gave way to the narrowing of topical issuances during the Third Reich. Though the provincial currencies were never again resurrected both the Bundesrepublik and the German Democratic Republic enlivened the the design world through the many commemorative coins minted during the difficult years of division.
German Notgeld
 
       While we have the spotlight on the Weimar years of currency uncertainties it should be of interest to consider the degrees of radical inflation in the modern world and the error that too readily is engaged in by financially debilitated governments in their lingering attempts to avert that final collapse of their currencies. The impermanence of the value of coinage amidst hyperinflation was met with increasingly frequent issuances of banknotes with denominations far exceeding previous issues. How many Zeroes can be added before the futility of the effort is admitted? That records for this feat are again and again broken suggests that the number may be as limitless as the temerity of the issuing authority; witness the 2,000,000 German Mark note, the 500,000,000,000 Yugoslavian Dinara note and the 100,000,000,000,000 Dollar note of Zimbabwe.
Hyperinflation Currency

       One of the things history should note is that when Japan launched it's offensives in the Pacific and in Asia during WWII the government had planned well in advance for the myriad of uncertainties an occupying power would face. One bit of forethought that Japan exercised was the pre-printing of occupation banknotes. Of course this foresight was matched by a ruthless determination to eliminate all other currencies in use for the sake of complete Japanese control of currency transactions. Often, the response of those resisting Japanese occupation was to flaunt these control, utilize guerrilla currencies and risk certain death if captured. The banknotes issued by any side in the conflicts in the region truly meant serious business.
Japanese and Guerrilla World War II Banknotes