Austrian Notgeld Paper Money: Worthless Or Valuable?

Notgeld is a German word that translates to 'emergency money' or 'necessity money'. It is money issued by an institution during an economic or political crisis when there is a shortage of state-produced money. Notgeld was mainly issued in the form of paper banknotes but could also be coins, leather, silk, linen, wood, postage stamps, aluminium foil, coal, and porcelain. During and after World War I, there was a shortage of money, especially small change, due to several reasons, including the expansion of German-occupied territories and the withdrawal of nickel coins from circulation. Notgeld was issued by several countries, including Austria, and is now a highly collectible item.

Austrian Notgeld from 1920

Austrian Notgeld, or "emergency money", was issued in 1920 by hundreds of small towns across Upper and Lower Austria, as well as in Salzburg, Tyrol, and Styria. These municipalities issued sets of collectible Notgeld, usually in denominations of 10, 20, and 50 heller with expiry dates of three months from issuance. The notes were printed on thin paper, often with different colours or shades in the same run.

The majority of the 1920 Austrian Notgeld were called Kassenscheine or Gutscheine, meaning "vouchers" or "short-term notes". They were issued on a certain date and could be redeemed for Austrian legal tender at a specific future date. While they did not earn interest, the issuing municipality was liable with all its assets for their redemption.

The 1920 Austrian Notgeld was issued in response to a scarcity of small change. This scarcity was caused by the rising costs of the materials needed to produce money, particularly coins, due to inflation during World War I. The purchasing power of the krone had decreased, and small coins began to be exported to neighbouring countries where their purchasing power was higher.

The design of the Notgeld notes varied, but often included local landmarks, landscapes, and verses in German and local dialects. Some notes even included humorous or patriotic verses. For example, the 20-heller note issued by the Town of Fraham in Upper Austria included the following verse:

> Now gone is silver and gold, And nickel and copper too, I fear, That’s why paper you now hold – Let’s hope that, too, soon will disappear.

Today, 1920 Austrian Notgeld is available for purchase by collectors, with eBay offering a variety of notes from different towns and in different denominations.

Austrian Notgeld from 1921

Austrian Notgeld, or "emergency money", was issued during and after World War I (1914-1918) in response to a shortage of coins and banknotes. The state bank gave towns and villages permission to issue their own currency, and Notgeld was issued from 1914 until about 1923. The terms 'gutschein', meaning 'voucher', and 'gemeinde', meaning 'municipality', often appeared on this currency.

The first large issue of Notgeld started at the outbreak of World War I. Due to inflation caused by the war, the value of the material that a coin was minted from was higher than the value of its denomination. Many institutions started to hoard coins. Additionally, the metals used to mint coins were needed for the production of war supplies. This caused a massive shortage of metal for coinage, which was remedied by issuing banknotes in small denominations.

The sets that were issued in 1920 and predominantly in 1921 were usually extremely colourful and depicted many subjects, such as local buildings, local scenes and local folklore/tales. Many series told a short story, with whimsical illustrations. These sets (that were not actually issued to go into circulation) were known as Serienscheine (a piece issued as a part of a series or set). As they were never issued to go into circulation, they are usually found in uncirculated condition and are still collected by Notgeld collectors all over the world.

In 1921, Austria was in the midst of a period of hyperinflation. The purchasing power of the krone was falling, and the government was financing its expenditures by printing more money. The exchange rate of the krone against the US dollar, the least inflationary currency, fell from 5.08 against the dollar in 1914 to 994.04 in 1921.

As a result of the general rise in prices, the materials needed to produce money became increasingly costly. This was a problem for coinage, as the value of the metal in the coins was now higher than their denomination. For example, the price of copper rose by 6,140.4% in terms of kronen between 1914 and 1921. It became uneconomical to produce coins, and small change became increasingly scarce.

The towns apparently all honoured their commitments. However, they made a strange discovery in early 1920 when the first major issues were cashed in: a large proportion of the notes were never returned. Some were lost or destroyed, and some had disappeared into private collections, as these new curios aroused interest among collectors. As a consequence, the towns made a profit, and more and more towns and private individuals began to issue Notgeld, creating a free market in small change and credit money.

The quality of the notes improved, with familiar landmarks and landscapes printed on them, as well as verses in German and local dialects. The notes were also made more secure, with signatures from local officials, such as the mayor, vice mayor, and treasurer.

Austrian Notgeld from 1922

Austrian Notgeld, or "emergency money", was issued during and after World War I (1914-1918) in response to a shortage of coins and banknotes. The state bank gave permission for towns and villages to issue their own currency, and Notgeld was issued from 1914 until about 1923.

The first large issue of Notgeld started at the outbreak of World War I. Due to inflation caused by the war, the value of the material that a coin was minted from was higher than the value of its denomination. This caused a massive shortage of metal for coinage, which was remedied by issuing banknotes in small denominations.

Many of these banknotes were very colourful, and they soon became a target for collectors. As the issuing bodies realized this demand, they continued to issue these notes beyond their economic necessity, up until 1922. The sets that were issued in 1920 and predominantly in 1921 were usually extremely colourful and depicted local buildings, local scenes, and local folklore/tales.

In 1920, hundreds of small towns across Upper and Lower Austria, as well as many towns in Salzburg, Tyrol, and Styria, issued sets of collectible Notgeld, usually in three denominations with expiry dates of three months. Nearly all were printed on thin paper, often in runs of different colours or shades. Some of these notes circulated, but most entered private collections, and the scheme's success in raising funds for destitute town budgets convinced German towns to do the same.

After the initial run of regular series, there were numerous releases of "special issues" featuring different designs and denominations, fanciful overprints, or the same design as the general issues but in expensive metallic inks on different paper types. Many of these special issues were printed in very small quantities to charge premiums to collectors.

In terms of monetary value, it seems that Austrian Notgeld from 1922 is worth something to collectors, as there are many listings for such notes on eBay.

Austrian Notgeld from 1923

Austrian Notgeld, or "emergency money", was issued by various institutions during and after World War I (1914-1918) in response to a shortage of coins and banknotes. The state bank gave permission for towns and villages to issue their own currency, and Notgeld was issued from 1914 until about 1923.

The first large issue of Notgeld began at the outbreak of World War I. Due to inflation caused by the war, the value of the material that a coin was minted from was higher than the value of its denomination. This, along with the hoarding of coins by the population, caused a massive shortage of metal for coinage. The shortage was remedied by issuing banknotes in small denominations.

Many of these banknotes were very colourful, and they soon became a target for collectors. As the issuing bodies realized this demand, they continued to issue these notes beyond their economic necessity, up until 1922. The sets that were issued in 1920 and predominantly in 1921 were usually extremely colourful and depicted local buildings, local scenes, and local folklore/tales.

In 1922 and 1923, a period of hyperinflation revived the monetary need for locally issued Notgeld. Up to 4,000 issuing bodies were producing Notgeld, and denominations that were issued sharply increased (up to trillions of Marks by November 1923). In 1924, the need for Notgeld came to an end as the Reichsbank fixed the value of the Rentenmark to gold, thus stabilizing Germany's currency.

Today, Notgeld Austrian paper money is available for purchase on sites such as eBay.

Austrian Notgeld from 1914-1919

Austrian Notgeld, or "emergency money", was issued by various institutions during World War I and the Interwar period. During this time, there was a shortage of state-produced money available from the central bank, and Notgeld was used as a substitute paper currency.

The need for emergency currency in Austria began in 1914 with a shortage of small change after the outbreak of World War I. Shops began issuing substitute paper currency in denominations between fifty Pfennig and five Marks. As more emergency currency was issued by municipalities, companies, and individuals, control of the monetary system was pulled away from the country's central Reichsbank, and the value of money decreased.

By 1918, notes of more than five Marks were commonly being issued. Between 1918 and 1922, Sammlerscheine, or collector notes, became popular. These notes often featured colourful illustrations that depicted local folklore, notable people, and attractions from a given location. Serienscheine, or series notes, were issued in sets of four to six different designs relating to a central theme or story. These notes developed value as collectibles rather than as currency.

In 1919, German-speaking towns of the new Czechoslovakia issued Grossgeldscheine notes until they were forbidden to do so by the authorities. In the same year, Austrian Notgeld was issued in the form of banknotes in denominations of 10, 20, and 50 Heller.

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