1 000 000 Polish marks

5 million Polish marks (mkp) was one of the highest denominations of the period of hyperinflation in Poland during the interwar period. The depreciation of the mkp, which had been progressing since the autumn of 1923, led within a few months to the collapse of this currency, marked by an increase in the price of the dollar by nearly 22,000 percent. These were the last months of the Polish mark and the Polish National Loan Fund (PKKP) issuing it - an occupational institution polonized in 1918, whose place, after the economic situation had stabilized, was to be taken by Bank Polski with the zloty as the national currency.

With the collapse of the mkp, the economic situation deteriorated, inflation led to a severe decline in real wages. Already in the third quarter of 1923, more than 250 thousand workers went on strike, and at the beginning of November a general strike broke out, which took a dramatic course in the Małopolska region. In Krakow, clashes between the protesters and the army resulted in fatalities. Fuelled by the leftist, communist opposition, public sentiment was calculated to unbalance the state and spark a revolution that would serve to seize power. There was also uproar in neighbouring countries. That autumn saw communist revolts in Bulgaria and Hamburg, as well as Adolf Hitler's Munich Coup (November 8).

Thus, the currency reform in Poland, postponed until the budget balance was achieved, had to be implemented in conditions of a deep economic and social crisis. Its author was the eminent economist Władysław Grabski (1874-1938), twice Prime Minister (June-July 1920, December 1923-November 1925) and Minister of the Treasury on several occasions. Using the already enacted legislation and the power to issue decrees with the force of law, a wealth tax was introduced, taxes were revalued, public spending was reduced, and railroad subsidies were abandoned. Credit for state expenditures from the PKKP mkp issue was also abandoned. Only after these steps were taken did stock market intervention stop the currency's decline in February. The 5 million mkp bill, introduced on 10 January 1924 lost about fifty percent of its value over the course of January.

At that time, this denomination made it possible to pay for a quarterly subscription of “Kurier Warszawski” to be collected personally in the capital. An advertisement in the daily offered a coat “with fur on top” for 100 million mkp, and a “slightly used” men's fur coat for 200 million mkp.

Tomasz Markiewicz