Currencies/Danzig gulden

Introduction

The Danzig Gulden (German: Danziger Gulden) was the official currency of the Free City of Danzig (modern-day Gdańsk, Poland) from 1923 to 1939. It replaced the German Papiermark and was subdivided into 100 Pfennig. The gulden symbolized Danzig’s brief monetary independence under the protection of the League of Nations before its annexation by Nazi Germany in 1939.

History

Following the Treaty of Versailles (1919), the Free City of Danzig was created under the League of Nations, separating it politically and economically from Germany. From 1914 to 1923, the region used the German Papiermark, but severe hyperinflation rendered it worthless.

To stabilize the economy, the Danzig Gulden was introduced in July 1923, backed by the British pound sterling under League of Nations supervision. The initial exchange rate was set at 25 gulden = 1 pound sterling, making 1 gulden ≈ 1.20 Reichsmark.

The Bank of Danzig was established as the issuing authority for coins and banknotes. The gulden maintained parity and relative stability through the 1920s and 1930s, serving as both a domestic and regional trade currency.

On 1 September 1939, when Germany invaded Poland and annexed Danzig, the Reichsmark was declared legal tender alongside the gulden. By 7 September 1939, the gulden was officially withdrawn, and the Reichsmark became the sole currency of the region.

Coins

The Danzig Gulden coinage was introduced in 1923, designed and minted at the Berlin State Mint. Coins bore the Danzig arms and inscriptions such as Freie Stadt Danzig (Free City of Danzig).

The coin system included both gulden and pfennig denominations, struck in a range of metals

Pfennig coins 1, 2, 5, and 10 pfennig (bronze or bronze-aluminum alloy).

Silver coins ½ gulden (1923–1927), 1 gulden (1923–1930), 5 gulden (1923–1938).

Commemorative coins Limited issues featuring national or civic symbols.

Notable examples include

½ Gulden (1923, 1927) – Silver (.750), weight ~2.5 g, diameter ~20 mm, featuring the Danzig coat of arms.

1 Gulden (1923) – Silver (.750), weight ~5 g, diameter ~23 mm, obverse with Danzig shield, reverse with denomination and date.

5 Gulden (1935–1938) – Silver (.900), weight ~12.5 g, diameter ~29 mm, with crowned city arms and two crosses.

Coins were issued in Proofs, Tests, and Standard Circulation forms.

Banknotes

The Bank of Danzig issued several series of gulden banknotes between 1923 and 1938, which were widely circulated throughout the Free City.

Denominations included: 10, 20, 25, 50, 100, 500, and 1000 gulden.

The earliest notes were printed in 1923 and featured simple anti-counterfeit designs, while later issues displayed intricate patterns, the Danzig city emblem, and bilingual inscriptions in German and Polish.

Currency

The Danzig Gulden was part of a decimal system:

1 Gulden = 100 Pfennig

After the 1939 annexation, the gulden was replaced by the Reichsmark at a conversion rate of:

1 Gulden = 0.70 Reichsmark (70 Reichspfennig)

Although the official exchange favored the gulden, actual conversion in the market was lower, around 1 Gulden = 0.47 Reichsmark.

This exchange marked the end of the Free City’s monetary sovereignty and the integration of its economy into Nazi Germany’s financial system.

Legacy

The Danzig Gulden represents one of the few examples of a League of Nations-administered currency. It stood as a symbol of Danzig’s autonomy during the interwar years and reflected the city’s economic resilience amid European instability.

Today, Danzig Gulden coins and notes are highly sought after by collectors for their historical and aesthetic value, particularly the silver ½, 1, and 5 Gulden series. They remain tangible artifacts of a short-lived but distinct monetary system in Central European history.