Stefan Zweig on the 1923 hyperinflation (1943)


Writing in 1943 the Austrian-German author Stefan Zweig recalls living through the 1923 hyperinflation:


“The mark plunged down, never to stop until it had reached the fantastic figures of madness – the millions, the billions and trillions. Now the real witches’ sabbath of inflation started, against which our Austrian inflation with its absurd enough ratio of 15,000 old to 1 of new currency had been shabby child’s play.

To describe it in detail, with its incredibilities, would take a whole book and to readers of today it would seem like a fairy tale. I have known days when I had to pay fifty thousand marks for a newspaper in the morning and a hundred thousand in the evening; whoever had foreign currency to exchange did so from hour to hour, because at four o’clock he would get a better rate than at three, and at five o’clock he would get much more than he had got an hour earlier. For instance, I sent a manuscript to my publisher on which I had worked for a year; to be on the safe side I asked for an advance payment of royalties on ten thousand copies. By the time the check was deposited, it hardly paid the postage I had put on the parcel a week before.

On street cars one paid in millions, trucks carried the paper money from the Reichsbank to the other banks, and a fortnight later one found hundred thousand mark notes in the gutter; a beggar had thrown them away contemptuously. A pair of shoe laces cost more than a shoe had once cost; no, more than a fashionable shoe store with two thousand pairs of shoes had cost before; to repair a broken window cost more than the whole house had formerly cost, a book more than the printer’s shop with a hundred presses.

For a hundred dollars one could buy rows of six-story houses on the Kurfürstendamm, and factories were to be had for the old equivalent of a wheelbarrow. Some adolescent boys who had found a case of soap forgotten in the harbor disported themselves for months in cars and lived like kings, selling a cake every day, while their parents, formerly well-to-do, slunk about like beggars. Messenger boys established foreign exchange businesses and speculated in currencies of all lands.

Towering over all of them was the gigantic figure of the super-profiteer Stinnes. Expanding his credit and exploiting the mark, he bought whatever was for sale, coal mines and ships, factories and stocks, castles and country estates, actually for nothing because every payment, every promise became equal to naught. Soon a quarter of Germany was in his hands, and perversely, the masses, who in Germany always become intoxicated at a success that they can see with their eyes, cheered him as a genius. The unemployed stood around by the thousands and shook their fists at the profiteers and foreigners in their luxurious cars who bought whole rows of streets like a box of matches; everyone who could read and write traded, speculated, and profited and had a secret sense that they were deceiving themselves and were being deceived by a hidden force which brought about this chaos deliberately in order to liberate the State from its debts and obligations.”