The Sudetenland is the historical German name for the northern and western areas of former Czechoslovakia which were inhabited by Sudeten Germans. These German speakers had predominated in the border districts of Bohemia and Czech Silesia from the time of the Austrian Empire; the word "Sudetenland" did not come into being until the early part of the 20th century and did not come to prominence until over a decade into the century, after the First World War, when the German-dominated Austria-Hungary was dismembered and the Sudeten Germans found themselves living in the new country of Czechoslovakia. The Sudeten crisis of 1938 was provoked by the Pan-Germanist demands of Germany that the Sudetenland be annexed to Germany, which happened after the Munich Agreement. Part of the borderland was annexed by Poland; when Czechoslovakia was reconstituted after the Second World War, the Sudeten Germans were expelled and the region today is inhabited exclusively by Czech speakers. The word Sudetenland is a German compound of Land, meaning "country", Sudeten, the name of the Sudeten Mountains, which run along the northern Czech border and Lower Silesia.
The Sudetenland encompassed areas well beyond those mountains, however. Parts of the now Czech regions of Karlovy Vary, Olomouc, Moravia-Silesia, Ústí nad Labem are within the area called Sudetenland; the areas known as the Sudetenland never formed a single historical region, which makes it difficult to distinguish the history of the Sudetenland apart from that of Bohemia, until the advent of nationalism in the 19th century. The Celtic and Boii tribes settled there and the region was first mentioned on the map of Ptolemaios in the 2nd century AD; the Germanic tribe of the Marcomanni dominated the entire core of the region in centuries. Those tribes built cities like Brno, but moved west during the Migration Period. In the 7th century AD Slavic people were united under Samo's realm. In the High Middle Ages Germans settled into the less populated border region. In the Middle Ages the regions situated on the mountainous border of the Duchy and the Kingdom of Bohemia had since the Migration Period been settled by western Slavic Czechs.
Along the Bohemian Forest in the west, the Czech lands bordered on the German Slavic tribes stem duchies of Bavaria and Franconia. In the course of the Ostsiedlung German settlement from the 13th century onwards continued to move into the Upper Lusatia region and the duchies of Silesia north of the Sudetes mountain range. From as early as the second half of the 13th century onwards these Bohemian border regions were settled by ethnic Germans, who were invited by the Přemyslid Bohemian kings — by Ottokar II and Wenceslaus II. After the extinction of the Přemyslid dynasty in 1306, the Bohemian nobility backed John of Luxembourg as king against his rival Duke Henry of Carinthia. In 1322 King John of Bohemia acquired the Imperial Egerland region in the west and was able to vassalize most of the Piast Silesian duchies, acknowledged by King Casimir III of Poland by the 1335 Treaty of Trentschin, his son, Bohemian King Charles IV, was elected King of the Romans in 1346 and crowned Holy Roman Emperor in 1355.
He added the Lusatias to the Lands of the Bohemian Crown, which comprised large territories with a significant German population. In the hilly border regions German settlers established major manufactures of forest glass; the situation of the German population was aggravated by the Hussite Wars, though there were some Germans among the Hussite insurgents. By Germans settled the hilly Bohemian border regions as well as the cities of the lowlands; the city of Prague had a German-speaking majority from the last third of the 17th century until 1860, but after 1910 the proportion of German speakers had decreased to 6.7% of the population. From the Luxembourgs, the rule over Bohemia passed through George of Podiebrad to the Jagiellon dynasty and to the House of Habsburg in 1526. Both Czech and German Bohemians suffered in the Thirty Years War. Bohemia lost 70% of its population. From the defeat of the Bohemian Revolt that collapsed at the 1620 Battle of White Mountain, the Habsburgs integrated the Kingdom of Bohemia into their monarchy.
During the subsequent Counter-Reformation, less populated areas were resettled with Catholic Germans from the Austrian lands. From 1627 the Habsburgs enforced the so-called Verneuerte Landesordnung and one of its consequences was that German according to mother tongue became the primary and official language while Czech declined to a secondary role in the Empire. In 1749 Austrian Empire enforced German as the official language again. Emperor Joseph II in 1780 renounced the coronation ceremony as Bohemian king and unsuccessfully tried to push German through as sole official language in all Habsburg lands. German cultural in
The United Nations is an intergovernmental organization, tasked to maintain international peace and security, develop friendly relations among nations, achieve international co-operation and be a centre for harmonizing the actions of nations. The headquarters of the UN is in Manhattan, New York City, is subject to extraterritoriality. Further main offices are situated in Geneva, Nairobi and The Hague; the organization is financed by voluntary contributions from its member states. Its objectives include maintaining international peace and security, protecting human rights, delivering humanitarian aid, promoting sustainable development and upholding international law; the UN is the largest, most familiar, most internationally represented and most powerful intergovernmental organization in the world. In 24 October 1945, at the end of World War II, the organization was established with the aim of preventing future wars. At its founding, the UN had 51 member states; the UN is the successor of the ineffective League of Nations.
On 25 April 1945, 50 governments met in San Francisco for a conference and started drafting the UN Charter, adopted on 25 June 1945 in the San Francisco Opera House, signed on 26 June 1945 in the Herbst Theatre auditorium in the Veterans War Memorial Building. This charter took effect on 24 October 1945; the UN's mission to preserve world peace was complicated in its early decades during the Cold War between the United States and Soviet Union and their respective allies. Its missions have consisted of unarmed military observers and armed troops with monitoring and confidence-building roles; the organization's membership grew following widespread decolonization which started in the 1960s. Since 80 former colonies had gained independence, including 11 trust territories, which were monitored by the Trusteeship Council. By the 1970s its budget for economic and social development programmes far outstripped its spending on peacekeeping. After the end of the Cold War, the UN shifted and expanded its field operations, undertaking a wide variety of complex tasks.
The UN has six principal organs: the General Assembly. The UN System agencies include the World Bank Group, the World Health Organization, the World Food Programme, UNESCO, UNICEF; the UN's most prominent officer is the Secretary-General, an office held by Portuguese politician and diplomat António Guterres since 1 January 2017. Non-governmental organizations may be granted consultative status with ECOSOC and other agencies to participate in the UN's work; the organization, its officers and its agencies have won many Nobel Peace Prizes. Other evaluations of the UN's effectiveness have been mixed; some commentators believe the organization to be an important force for peace and human development, while others have called the organization ineffective, biased, or corrupt. In the century prior to the UN's creation, several international treaty organizations such as the International Committee of the Red Cross was formed to ensure protection and assistance for victims of armed conflict and strife.
In 1914, a political assassination in Sarajevo set off a chain of events that led to the outbreak of World War I. As more and more young men were sent down into the trenches, influential voices in the United States and Britain began calling for the establishment of a permanent international body to maintain peace in the postwar world. President Woodrow Wilson became a vocal advocate of this concept, in 1918 he included a sketch of the international body in his 14-point proposal to end the war. In November 1918, the Central Powers agreed to an armistice to halt the killing in World War I. Two months the Allies met with Germany and Austria-Hungary at Versailles to hammer out formal peace terms. President Wilson wanted peace, but the United Kingdom and France disagreed, forcing harsh war reparations on their former enemies; the League of Nations was approved, in the summer of 1919 Wilson presented the Treaty of Versailles and the Covenant of the League of Nations to the US Senate for ratification.
On January 10, 1920, the League of Nations formally comes into being when the Covenant of the League of Nations, ratified by 42 nations in 1919, takes effect. However, at some point the League became ineffective when it failed to act against the Japanese invasion of Manchuria as in February 1933, 40 nations voted for Japan to withdraw from Manchuria but Japan voted against it and walked out of the League instead of withdrawing from Manchuria, it failed against the Second Italo-Ethiopian War despite trying to talk to Benito Mussolini as he used the time to send an army to Africa, so the League had a plan for Mussolini to just take a part of Ethiopia, but he ignored the League and invaded Ethiopia, the League tried putting sanctions on Italy, but Italy had conquered Ethiopia and the League had failed. After Italy conquered Ethiopia and other nations left the league, but all of them realised that they began to re-arm as fast as possible. During 1938, Britain and France tried negotiating directly with Hitler but this failed in 1939 when Hitler invaded Czechoslovakia.
When war broke out in 1939, the League closed down and its headquarters in Geneva remained empty throughout the war. The earliest concrete plan for a new world organization began under the aegis of the U. S. State Department in 1939; the text of the "Declaration by United Nations" was drafted at the White House on December 29, 1941, by President Franklin D. Roosevelt, Prime Minister Winston Churchill, Roosevelt aide Harry Hopkins
Allies of World War II
The Allies of World War II, called the United Nations from the 1 January 1942 declaration, were the countries that together opposed the Axis powers during the Second World War. The Allies promoted the alliance as a means to control German and Italian aggression. At the start of the war on 1 September 1939, the Allies consisted of France and the United Kingdom, as well as their dependent states, such as British India. Within days they were joined by the independent Dominions of the British Commonwealth: Australia, New Zealand and South Africa. After the start of the German invasion of North Europe until the Balkan Campaign, the Netherlands, Belgium and Yugoslavia joined the Allies. After first having cooperated with Germany in invading Poland whilst remaining neutral in the Allied-Axis conflict, the Soviet Union perforce joined the Allies in June 1941 after being invaded by Germany; the United States provided war materiel and money all along, joined in December 1941 after the Japanese attack on Pearl Harbor.
China had been in a prolonged war with Japan since the Marco Polo Bridge Incident of 1937, but joined the Allies in 1941. The alliance was formalised by the Declaration by United Nations, from 1 January 1942. However, the name United Nations was used to describe the Allies during the war; the leaders of the "Big Three"—the Soviet Union, the United Kingdom, the United States—controlled Allied strategy. The Big Three together with China were referred as a "trusteeship of the powerful" were recognized as the Allied "Big Four" in the Declaration by United Nations and as the "Four Policemen" of the United Nations. After the war ended, the Allied nations became the basis of the modern United Nations. Members The origins of the Allied powers stem from the Allies of World War I and cooperation of the victorious powers at the Paris Peace Conference, 1919. Germany resented signing Treaty of Versailles; the new Weimar Republic's legitimacy became shaken. However, the 1920s were peaceful. With the Wall Street Crash of 1929 and the ensuing Great Depression, political unrest in Europe soared including the rise in support of revanchist nationalists in Germany who blamed the severity of the economic crisis on the Treaty of Versailles.
By the early 1930s, the Nazi Party led by Adolf Hitler became the dominant revanchist movement in Germany and Hitler and the Nazis gained power in 1933. The Nazi regime demanded the immediate cancellation of the Treaty of Versailles and made claims to German-populated Austria, German-populated territories of Czechoslovakia; the likelihood of war was high, the question was whether it could be avoided through strategies such as appeasement. In Asia, when Japan seized Manchuria in 1931, the League of Nations condemned it for aggression against China. Japan responded by leaving the League of Nations in March 1933. After four quiet years, the Sino-Japanese War erupted in 1937 with Japanese forces invading China; the League of Nations initiated sanctions on Japan. The United States, in particular, was sought to support China. In March 1939, Germany took over Czechoslovakia, violating the Munich Agreement signed six months before, demonstrating that the appeasement policy was a failure. Britain and France decided that Hitler had no intention to uphold diplomatic agreements and responded by preparing for war.
On 31 March 1939, Britain formed the Anglo-Polish military alliance in an effort to avert a German attack on the country. The French had a long-standing alliance with Poland since 1921; the Soviet Union sought an alliance with the western powers, but Hitler ended the risk of a war with Stalin by signing the Nazi–Soviet non-aggression pact in August 1939. The agreement secretly divided the independent nations of Eastern Europe between the two powers and assured adequate oil supplies for the German war machine. On 1 September 1939, Germany invaded Poland. On 17 September 1939, the Soviet Union invaded Poland from the east. A Polish government-in-exile was set up and it continued to be one of the Allies, a model followed by other occupied countries. After a quiet winter, Germany in April 1940 invaded and defeated Denmark, Belgium, the Netherlands and France. Britain and its Empire stood alone against Mussolini. In June 1941, Hitler broke the non-aggression agreement with Stalin and Germany invaded the Soviet Union.
In December, Japan attacked the Britain. The main lines of World War II had formed. During December 1941, U. S. President Franklin D. Roosevelt devised the name "United Nations" for the Allies and proposed it to British Prime Minister Winston Churchill, he referred to the Big Three and China as a "trusteeship of the powerful", later the "Four Policemen". The Declaration by United Nations on 1 January 1942 was the basis of the modern United Nations. At the Potsdam Conference of July–August 1945, Roosevelt's successor, Harry S. Truman, proposed that the foreign ministers of China, the Soviet Union, the United Kingdom, the United States "should draft the peace treaties and boundary settlements of Europe", which led to the creation of the Council of Foreign Ministers of the "Big Five", soon thereafter the establishment of those states as the permanent members of the UNSC. Great Britain and other members of the British Commonwealth, most known as the Dominions, declared war on Germany separately from 3 September 1939 with the UK first, all within one week of each other.
British West Africa and the British colonies in E
A black market, underground economy, or shadow economy is a clandestine market or series of transactions that has some aspect of illegality or is characterized by some form of noncompliant behavior with an institutional set of rules. If the rule defines the set of goods and services whose production and distribution is prohibited by law, non-compliance with the rule constitutes a black market trade since the transaction itself is illegal. Parties engaging in the production or distribution of prohibited goods and services are members of the illegal economy. Examples include the drug trade, illegal currency transactions and human trafficking. Violations of the tax code involving income tax evasion constitute membership in the unreported economy; because tax evasion or participation in a black market activity is illegal, participants will attempt to hide their behavior from the government or regulatory authority. Cash usage is the preferred medium of exchange in illegal transactions since cash usage does not leave a footprint.
Common motives for operating in black markets are to trade contraband, avoid taxes and regulations, or skirt price controls or rationing. The totality of such activity is referred to with the definite article as a complement to the official economies, by market for such goods and services, e.g. "the black market in bush meat". The black market is distinct from the grey market, in which commodities are distributed through channels that, while legal, are unofficial, unauthorized, or unintended by the original manufacturer, the white market, in which trade is legal and official. Black money is the proceeds of an illegal transaction, on which income and other taxes have not been paid, which can only be legitimised by some form of money laundering; because of the clandestine nature of the black economy it is not possible to determine its size and scope. The literature on the black market has not established a common terminology and has instead offered many synonyms including: subterranean. There is no single underground economy.
These underground economies are omnipresent, existing in market oriented as well as in centrally planned nations, be they developed or developing. Those engaged in underground activities circumvent, escape or are excluded from the institutional system of rules, rights and enforcement penalties that govern formal agents engaged in production and exchange. Different types of underground activities are distinguished according to the particular institutional rules that they violate. Four major underground economies can be identified: the illegal economy the unreported economy the unrecorded economy the informal economyThe "illegal economy" consists of the income produced by those economic activities pursued in violation of legal statutes defining the scope of legitimate forms of commerce. Illegal economy participants engage in the production and distribution of prohibited goods and services, such as drug trafficking, arms trafficking, prostitution; the "unreported economy" consists of those economic activities that circumvent or evade the institutionally established fiscal rules as codified in the tax code.
A summary measure of the unreported economy is the amount of income that should be reported to the tax authority but is not so reported. A complementary measure of the unreported economy is the "tax gap", namely the difference between the amount of tax revenues due the fiscal authority and the amount of tax revenue collected. In the U. S. unreported income is estimated to be $2 trillion resulting in a "tax gap" of $450–$600 billion. The "unrecorded economy" consists of those economic activities that circumvent the institutional rules that define the reporting requirements of government statistical agencies. A summary measure of the unrecorded economy is the amount of unrecorded income, namely the amount of income that should be recorded in national accounting systems but is not. Unrecorded income is a particular problem in transition countries that switched from a socialist accounting system to UN standard national accounting. New methods have been proposed for estimating the size of the unrecorded economy.
But there is still little consensus concerning the size of the unreported economies of transition countries. The "informal economy" comprises those economic activities that circumvent the costs and are excluded from the benefits and rights incorporated in the laws and administrative rules covering property relationships, commercial licensing, labor contracts, financial credit and social security systems. A summary measure of the informal economy is the income generated by economic agents that operate informally; the informal sector is defined as the part of an economy, not taxed, monitored by any form of government, or included in any gross national product, unlike the formal economy. In developed countries the informal sector is characterized by unreported employment; this is hidden from the state for tax, social security or labour law purposes but is legal in all other aspects. On the other hand, the term black market can be used in reference to a specific part of the economy in which contraband is traded.
Goods and services acquired illegally and/or transacted for in an illegal manner may exchange above or below the price of legal market transactions: They may be cheaper than legal market prices. The supplier taxes; this is the case in the underground economy. Criminals steal goods and sell them below the legal market price, but there is no receipt, so for
The Potsdam Conference was held at Cecilienhof, the home of Crown Prince Wilhelm in Potsdam, occupied Germany, from 17 July to 2 August 1945. The participants were the Soviet Union, the United Kingdom, the United States, represented by Communist Party General Secretary Joseph Stalin, Prime Ministers Winston Churchill and Clement Attlee, President Harry S. Truman. Stalin and Truman gathered to decide how to administer Germany, which had agreed to unconditional surrender nine weeks earlier on 8 May; the goals of the conference included the establishment of postwar order, peace treaty issues, countering the effects of the war. A number of changes had taken place in the five months since the Yalta Conference which affected the relationships among the leaders; the Soviet Union was occupying Eastern Europe. Stalin had set up a puppet Communist government in Poland, he insisted that his control of Eastern Europe was a defensive measure against possible future attacks, claiming that it was a legitimate sphere of Soviet influence.
Second, Britain had a new Prime Minister. Conservative Party leader Winston Churchill had served as Prime Minister in a coalition government. A general election had been held in the UK on 5 July; the outcome became known during the conference when Labour leader Clement Attlee became the new Prime Minister. Third, President Roosevelt had died on 12 April 1945, Vice President Harry Truman assumed the presidency. During the war and in the name of Allied unity, Roosevelt had brushed off warnings of a potential domination by Stalin in part of Europe, he explained, "I just have a hunch that Stalin is not that kind of a man." "I think that if I give him everything I can and ask for nothing from him in return,'noblesse oblige', he won't try to annex anything and will work with me for a world of democracy and peace."Truman had followed the Allied progress of the war. George Lenczowski notes that, "despite the contrast between his modest background and the international glamour of his aristocratic predecessor, had the courage and resolution to reverse the policy that appeared to him naive and dangerous", "in contrast to the immediate ad hoc moves and solutions dictated by the demands of the war".
With the end of the war, the priority of allied unity was replaced with the challenge of the relationship between the two emerging superpowers. The two leading powers continued to sustain a cordial relationship to the public, but suspicions and distrust lingered between them. Truman was much more suspicious of the Communists than Roosevelt had been, he became suspicious of Soviet intentions under Stalin, he and his advisers saw Soviet actions in Eastern Europe as aggressive expansionism, incompatible with the agreements that Stalin had committed to at Yalta the previous February. In addition, Truman became aware of possible complications elsewhere when Stalin objected to Churchill's proposal for an early Allied withdrawal from Iran, ahead of the schedule agreed at the Tehran Conference; the Potsdam Conference was the only time. At the Yalta Conference France had been granted an occupation zone within Germany, France had been a participant in the Berlin Declaration, France was to be an equal member of the Allied Control Council.
At the insistence of the Americans, General de Gaulle was not invited to Potsdam, as he had too been denied representation at Yalta. Reasons for the omissions included the longstanding personal mutual antagonism between Roosevelt and De Gaulle, ongoing disputes over the French and American occupation zones and anticipated conflicts of interest over French Indochina. At the end of the conference, the three Heads of Government agreed on the following actions. All other issues were to be answered by the final peace conference to be called as soon as possible; the Allies issued a statement of aims of their occupation of Germany: demilitarization, democratization, decentralization and decartelization. Germany and Austria were each to be divided into four occupation zones, each capital and Vienna, was to be divided into four zones, it was agreed. All German annexations in Europe were to be reversed, including Sudetenland, Alsace-Lorraine and the westernmost parts of Poland. Germany's eastern border was to be shifted westwards to the Oder–Neisse line reducing Germany in size by 25% compared to its 1937 borders.
The territories east of the new border comprised East Prussia, West Prussia, two thirds of Pomerania. These areas were agricultural, with the exception of Upper Silesia, th
The Marshall Plan was an American initiative passed in 1948 to aid Western Europe, in which the United States gave over $12 billion in economic assistance to help rebuild Western European economies after the end of World War II. Replacing the previous Morgenthau Plan, it operated for four years beginning on April 3, 1948; the goals of the United States were to rebuild war-torn regions, remove trade barriers, modernize industry, improve European prosperity, prevent the spread of Communism. The Marshall Plan required a lessening of interstate barriers, a dropping of many regulations, encouraged an increase in productivity, as well as the adoption of modern business procedures; the Marshall Plan aid was divided amongst the participant states on a per capita basis. A larger amount was given to the major industrial powers, as the prevailing opinion was that their resuscitation was essential for general European revival. Somewhat more aid per capita was directed towards the Allied nations, with less for those, part of the Axis or remained neutral.
The largest recipient of Marshall Plan money was the United Kingdom, followed by France and West Germany. Some eighteen European countries received Plan benefits. Although offered participation, the Soviet Union refused Plan benefits, blocked benefits to Eastern Bloc countries, such as Hungary and Poland; the United States provided similar aid programs in Asia, but they were not part of the Marshall Plan. Its role in the rapid recovery has been debated. Most reject the idea that it alone miraculously revived Europe, since the evidence shows that a general recovery was under way; the Marshall Plan's accounting reflects that aid accounted for less than 3% of the combined national income of the recipient countries between 1948 and 1951, which means an increase in GDP growth of only 0.3%. After World War II, in 1947, industrialist Lewis H. Brown wrote at the request of General Lucius D. Clay, A Report on Germany, which served as a detailed recommendation for the reconstruction of post-war Germany, served as a basis for the Marshall Plan.
The initiative was named after United States Secretary of State George Marshall. The plan had bipartisan support in Washington, where the Republicans controlled Congress and the Democrats controlled the White House with Harry S. Truman as President; the Plan was the creation of State Department officials William L. Clayton and George F. Kennan, with help from the Brookings Institution, as requested by Senator Arthur H. Vandenberg, chairman of the Senate Foreign Relations Committee. Marshall spoke of an urgent need to help the European recovery in his address at Harvard University in June 1947; the purpose of the Marshall Plan was to aid in the economic recovery of nations after WWII and to reduce the influence of Communist parties within them. To combat the effects of the Marshall Plan, the USSR developed its own economic plan, known as the Molotov Plan, in spite of the fact that large amounts of resources from the Eastern Bloc countries to the USSR were paid as reparations, for countries participating in the Axis Power during the war.
The phrase "equivalent of the Marshall Plan" is used to describe a proposed large-scale economic rescue program. The reconstruction plan, developed at a meeting of the participating European states, was drafted on June 5, 1947, it offered the same aid to the Soviet Union and its allies, but they refused to accept it, as doing so would allow a degree of US control over the communist economies. In fact, the Soviet Union prevented its satellite states from accepting. Secretary Marshall became convinced Stalin had no interest in helping restore economic health in Western Europe. President Harry Truman signed the Marshall Plan on April 3, 1948, granting $5 billion in aid to 16 European nations. During the four years the plan was in effect, the United States donated $17 billion in economic and technical assistance to help the recovery of the European countries that joined the Organisation for European Economic Co-operation; the $17 billion was in the context of a US GDP of $258 billion in 1948, on top of $17 billion in American aid to Europe between the end of the war and the start of the Plan, counted separately from the Marshall Plan.
The Marshall Plan was replaced by the Mutual Security Plan at the end of 1951. The ERP addressed each of the obstacles to postwar recovery; the plan did not focus on the destruction caused by the war. Much more important were efforts to modernize European industrial and business practices using high-efficiency American models, reducing artificial trade barriers, instilling a sense of hope and self-reliance. By 1952, as the funding ended, the economy of every participant state had surpassed pre-war levels. Over the next two decades, Western Europe enjoyed unprecedented growth and prosperity, but economists are not sure what proportion was due directly to the ERP, what proportion indirectly, how much would have happened without it. A common American interpretation of the program's role in European recovery was expressed by Paul Hoffman, head of the Economic Cooperation Administration, in 1949, when he told Congress Marshall aid had provided the "critical margin" on which other investment needed for European recovery depended.
The Marshall Plan was one of the first elements of European integration, as it erased trade barriers and set up institutions to co
The Deutsche Mark, abbreviated "DM" or "D-Mark", was the official currency of West Germany from 1948 until 1990 and the unified Germany from 1990 until 2002. It was first issued under Allied occupation in 1948 to replace the Reichsmark, served as the Federal Republic of Germany's official currency from its founding the following year until the adoption of the euro. In English it is called the "Deutschmark"; the Germans called it D-Mark when referring to the currency, Mark when talking about individual sums. In 1999, the Deutsche Mark was replaced by the Euro; the Deutsche Mark ceased to be legal tender upon the introduction of the euro — in contrast to the other eurozone nations, where the euro and legacy currency circulated side by side for up to two months. Mark coins and banknotes continued to be accepted as valid forms of payment in Germany until 28 February 2002; the Deutsche Bundesbank has guaranteed that all German marks in cash form may be changed into euros indefinitely, one may do so in person at any branch of the Bundesbank in Germany.
Banknotes and coins can be sent to the Bundesbank by mail. In 2012, it was estimated that as many as 13.2 billion marks were in circulation, with one poll showing a narrow majority of Germans favouring the currency's restoration. On 31 December 1998, the Council of the European Union fixed the irrevocable exchange rate, effective 1 January 1999, for German mark to euros as DM 1.95583 = €1. One Deutsche Mark was divided into 100 Pfennige. A mark had been the currency of Germany since its original unification in 1871. Before that time, the different German states issued a variety of different currencies, though most were linked to the Vereinsthaler, a silver coin containing 16 2⁄3 grams of pure silver. Although the mark was based on gold rather than silver, a fixed exchange rate between the Vereinsthaler and the mark of 3 marks = 1 Vereinsthaler was used for the conversion; the first mark, known as the Goldmark, was introduced in 1873. With the outbreak of World War I, the mark was taken off the gold standard.
The currency thus became known as the Papiermark as high inflation hyperinflation occurred and the currency became made up of paper money. The Papiermark was replaced by the Rentenmark from November 15, 1923, the Reichsmark in 1924. During the first two years of occupation the occupying powers of France, United Kingdom, United States, the Soviet Union were not able to negotiate a possible currency reform in Germany. Due to the strains between the Allies each zone was governed independently as regards monetary matters; the US occupation policy was governed by the directive JCS 1067, which forbade the US military governor "to take any steps to strengthen German financial structure". As a consequence a separate monetary reform in the U. S. zone was not possible. Each of the Allies printed its own occupation currency; the Deutsche Mark was introduced on Sunday, June 20, 1948 by Ludwig Erhard. The old Reichsmark and Rentenmark were exchanged for the new currency at a rate of DM 1 = RM 1 for the essential currency such as wages, payment of rents etc. and DM 1 = RM 10 for the remainder in private non-bank credit balances, with half frozen.
Large amounts were exchanged for RM 10 to 65 Pfennig. In addition, each person received a per capita allowance of DM 60 in two parts, the first being DM 40 and the second DM 20. A few weeks Erhard, acting against orders, issued an edict abolishing many economic controls, implemented by the Nazis, which the Allies had not removed, he did this, as he confessed, on Sunday because the offices of the American and French occupation authorities were closed that day. He was sure; the introduction of the new currency was intended to protect western Germany from a second wave of hyperinflation and to stop the rampant barter and black market trade. Although the new currency was only distributed in the three western occupation zones outside Berlin, the move angered the Soviet authorities, who regarded it as a threat; the Soviets promptly cut off all road and canal links between the three western zones and West Berlin, starting the Berlin Blockade. In response, the U. S. and Britain launched an airlift of food and coal and distributed the new currency in West Berlin as well.
Since the 1930s, prices and wages had been controlled. That meant that people had accumulated large paper assets, that official prices and wages did not reflect reality, as the black market dominated the economy and more than half of all transactions were taking place unofficially; the reform replaced the old money with the new Deutsche Mark at the rate of one new per ten old. This wiped out 90% of government and private debt, as well as private savings. Prices were decontrolled, labor unions agreed to accept a 15% wage increase, despite the 25% rise in prices; the result was the prices of German export products held steady, while profits and earnings from exports soared and were poured back into the economy. The currency reforms were simultaneous with the $1.4 billion in Marshall Plan money coming in from the United States, used for investment. In addition, the Marshall plan forced German companies, as well as those in all of Western Europe, to moder