When BASF printed the aniline dollar - emergency money 100 years ago
As a reminder of a difficult time of crisis in Germany, it now lies in BASF's company archives: the so-called aniline dollar. The Ludwigshafen-based company introduced the emergency currency 100 years ago, in November 1923. For a few weeks, the aniline dollar became a recognized and popular means of payment in the Palatinate. The company archives also contain various emergency money coins. According to the company, there is no certainty as to the whereabouts of most of the bills. BASF was founded in 1865 as Badische Anilin- & Soda-Fabrik. Aniline is an oily substance used in the production of paints and synthetic fibers.
Looking back: At the end of the First World War, Germany was heavily in debt and people were burdened by extremely high inflation. The government allowed companies to produce emergency money in order to pay wages and maintain trade. BASF-Spenglerei began to produce blanks from sheet zinc. From January 1, 1918 to June 6, 1919, the company issued 64,290 marks to its employees. As security, the management had to deposit 165,000 marks in Prussian treasury notes with the Bayerische Staatsbank.
The emergency money was withdrawn at the end of 1921, but the problems remained. By 1922, the shortage of paper money was so severe that BASF was unable to raise enough state money from the banks to pay wages and salaries. The company was allowed to print its own thousand-mark bills worth 300 million marks. In some cases, emergency money already in circulation had to be repeatedly overprinted with higher values in the company printing works.
This ensured wages and salaries for a year until the collateral transferred to the Reichskreditgesellschaft rapidly lost value. In order to protect its employees from inflation, BASF introduced the so-called Grundmark in September 1923 - with retroactive effect from August 1 - which was finally replaced in November 1923 by a new emergency currency: the aniline dollar.
BASF deposited Dutch guilders worth one million US dollars as collateral for this - hence the nickname Aniline Dollar. These emergency currencies were produced by the company's own printing works. It was not until November 27, 1923 that the Weimar Republic introduced the so-called Rentenmark, thus putting an end to inflation in Germany. According to BASF, it is no longer possible to reliably state how many Aniline dollars were printed in total after 100 years.
The company's historical involvement in currency issues is evident through the production of the aniline dollar, a form of emergency money during Germany's inflation crisis in the 1920s. As part of its archives, BASF still has various aniline dollar coins and bills, reflecting its significant role in the chemical industry's response to economic hardships.
The company's foundational year in chemistry, 1865, sparked its ability to innovate even during times of financial instability, as demonstrated by the introduction of the aniline dollar as a form of currency, showcasing the intersection of history, chemistry, and the company's operations.
Source: www.dpa.com
