Historical Sketch

In the course of the second Polish partition, the city of Danzig (Gdańsk) became part of Prussia in 1793. After a short period as free city after the Prussian defeat in the Napoleonic Wars, the 1815 Vienna Congress confirmed the Prussian sovereignty. After World War I, Poland renewed the claim for the city, but Danzig was constituted as Free City under League of Nations protection to take into account the fact that it was predominantly German-populated. In September 1939, Germany attacked Poland and Danzig. The Free City statute was terminated immediately and Danzig was incorporated into neighboring Wast Prussia province. In March 1945, the Red Army invaded Danzig, and the German population fled or got expelled. Danzig got incorporated into post-war Poland.

Monetary History Overview

Independent Danzig initially kept the German Reichsmark so that hyperinflation also raged here. In September 1923, the Danzig and Polish governments agreed on a currency reform to stabilize the monetary situation. The Danzig Guilder was created as gold currency pegged to the Pound Sterling. The switchover took place gradually, at each step at the actual conversion rate was applied. As the final step at the end of the year, deposits and loans were converted. Banknotes had already disappeared from circulation and were not exchanged. In 1935, the Guilder was devalued by more than 40% and became equal to the Polish Zloty. With the German occupation annexation in 1939, the German Reichsmark was made sole legal tender wth immediate effect. The Danzig currency was withdrawn until October, at an exchange rate that was 40% more favourable than in the annexed Polish territories.

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