The Currency of the Ober Ost
Germany’s occupation of Eastern Europe during World War I produced a unique currency system that circulated long after the fighting ended.
The Gebiet des Oberbefehlshabers Ost (Area of the Commander-in-Chief in the East), or Ober Ost, was a German-occupied territory comprising Poland, Belarus, Russia, and the Baltic States during World War I (1914–1918). The Ober Ost was established in November 1914 by Kaiser Wilhelm II and was subsequently ruled by field marshals Paul von Hindenburg and Prince Leopold of Bavaria. Various attempts at Germanization were carried out in these territories, including the implementation of mandatory German-language classes in schools. A military order issued on June 7, 1916, gave the Ober Ost autonomy over economic matters, jurisdiction, customs duties, and its own currency.
A one-ruble note issued for circulation in the Ober Ost.
Until September 1918, not only military but also civilian matters affecting the Ober Ost were decided upon by the German military authority. A civilian administration led by German politicians was then introduced, with responsibility for non-military affairs. This was short-lived, since the Ober Ost was gradually abandoned by the Germans at the end of 1918 and into 1919 following the end of World War I and the subsequent collapse of the German Empire.
This article explores the currency that was specifically created by the German authorities for circulation in these occupied territories. In April 1916, the Poznan-based Ostbank für Handel und Gewerbe (Eastern Bank for Trade and Industry), one of the largest banks in Eastern Germany, was instructed by the Germans to set up a temporary issuing institution, the Darlehnskasse Ost (Eastern Lending Bank), that would be in charge of producing the money for circulation in the occupied territories.
Respective obverses of a 20- and 50-kopeck bank notes issued for circulation in the Ober Ost.
Respective obverses of 3- and 10-ruble bank notes issued for circulation in the Ober Ost.
Following German indications, an Ostrubel (eastern ruble) was issued and was interchangeable with the Reichmark (German imperial mark) at a ratio of 2:1. In doing so, the precepts of the Hague International Convention signed in 1907 were respected since they prescribed that the occupants should preserve the existing monetary system in the controlled areas.
The eastern ruble was backed by a mix of German imperial bank notes, short-term Treasury bills, and credit balances with German banks. Bank notes in nominal values of 20 and 50 kopecks, and 1, 3, 10, 25, and 100 eastern rubles were issued by the Ostbank through the Eastern Lending Bank on April 17, 1916. While the colors and patterns vary by denomination, the legends are identical. The obverse contains the nominal value, name of the issuing institution, date of issuance, and the signatures of three bank officials. A message was also included in the obverse warning that forgery of these notes would be punished with up to eight years of forced labor. All legends appearing on this side of the notes were written in German and also engraved on the reverse of the notes, but in Lithuanian, Polish, and Latvian (with old-style orthography in the latter case).
Respective obverses of 25- and 100-ruble bank notes issued for circulation in the Ober Ost.
The 20-kopeck notes (110x76 mm) were printed using light blue and grey inks. A red-and-green color scheme was mostly used on the 50-kopeck notes (125x80 mm). The 1-ruble note (130x85 mm) was predominantly brown and blue, while the 3-ruble note (145x90 mm) was mostly green. Red was mainly used in the 10-ruble notes (160x100 mm). The 25-ruble (175x109 mm) and the 100-ruble (180x110 mm) notes were mostly grey and blue. Following German orders, these notes were to be used not only by the local population but also by German soldiers when trading with locals.
Unlike the rest of the bank notes of the series, the 100-ruble bank note further displayed, on the obverse, idealized images of a warrior and a woman. The likeness of another woman and the god Mercury were also engraved on the reverse. Most notes carry a serial number on the obverse in red ink, followed by a letter and six numbers. The serial number is also displayed on the reverse of the 100-ruble note, although the letter in these notes is either missing or is replaced by an additional numeric digit. The serial number is not present in those notes of nominal values of 1 ruble or fractions thereof. Iron coins in nominal values of 1, 2, and 3 kopecks were also minted in 1916 for circulation in the Ober Ost.
A half mark note issued for circulation in the Ober Ost.
A 1-mark note issued for circulation in the Ober Ost.
Following the signing of the Treaty of Brest-Litovsk in March 1918 between Soviet Russia and the Central Powers led by Germany, the former withdrew from the war. Russia was forced to accept the loss of all regions west of an agreed-upon demarcation line. As a result, the Ober Ost significantly expanded to encompass new territories in present-day Lithuania, Latvia, Belarus, and parts of Poland, all of which had until then belonged to the Russian Empire.
The new situation was immediately reflected in the currency produced by the German authorities for the Ober Ost. A new series of bank notes was issued on April 4, 1918, with nominal values no longer expressed in eastern rubles but in Ostmark (eastern marks). The notes, while still issued by the Eastern Lending Bank, were now produced in Kaunas, in present-day Lithuania. Both currencies circulated alongside each other in the occupied territories at a fixed ratio of 1 eastern ruble to 2 eastern marks.
Respective obverses of 2-, 5-, and 20-mark bank notes issued for circulation in the Ober Ost.
The new bank notes were issued in nominal values of ½, 1, 2, 5, 20, 50, 100 and 1,000 eastern marks. No coinage complemented the bank note issue. The higher nominal values of the new emission responded to the rising inflation experienced in the Ober Ost.
The design of the notes is very similar to that of the previously commented 1916 issue. The obverse displays (in German) the nominal value, issuing institution, and date of issue, the official signatures, and a legend indicating that the notes were guaranteed by the German Empire.
Apart from the nominal value, the reverse also contains a legend, reproduced in German, Lithuanian, and Latvian (old orthography), informing that anyone who counterfeited or forged the notes would be punished with up to eight years of forced labor.
The ½-mark notes (110x70 mm) were printed using pink and yellow. Green and brown were used in the 1-mark notes (125x78 mm), whereas the 2-mark notes (127x84 mm) were mostly pink. Light blue and red were the predominant colors used in the 5- (145x90 mm) and 20-mark (158x100 mm) notes, respectively.
Respective obverses of 50- and 100-mark bank notes issued for circulation in the Ober Ost.
Finally, grey, brown, and green were the respective colors chosen for the 50- (173x110 mm), 100- (175x110 mm), and 1000-mark notes (190x110 mm). The 100-mark note displayed the same images on both sides as those depicted on the bank note of identical denomination issued in 1916. Similarly, both sides of the 1000-mark note displayed allegories of commerce (the god Mercury and ships), the army (the knight), and agriculture (a female peasant on the reverse). All serial numbers were engraved using red ink. In notes of 2 marks or less nominal value, it consisted of a letter followed by a seven-digit number engraved on the reverse. A letter followed by a six-digit serial number was placed on the obverse of the 5-, 20-, 50-, and 1,000-mark notes. Interestingly, the 100-mark bank notes carried a seven-digit serial number engraved on both sides.
A 1,000-mark note issued for circulation in the Ober Ost.
It is estimated that at the end of WWI, in November 1918, there were one billion notes of this currency circulating in the Ober Ost. Interestingly, the use of the eastern ruble and the eastern mark did not terminate immediately after the end of the German occupation. After the independence of Estonia and Latvia in 1919, these notes were no longer in use in those territories, which were replaced by their respective national currencies. The notes continued to be used in some regions of Poland until 1920, while Lithuania kept these notes in circulation until 1922, when the Darlehnskasse Ost was replaced by the Bank of Lithuania.
While printed in significant numbers, these notes are very scarce nowadays. The rampant inflation that ravaged the Ober Ost and Germany towards the end of the war rendered the notes virtually worthless. As a result, many of them were incinerated, and very few have survived in good condition.
All images courtesy of the author.
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