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Postwar Germany

~ 1945-1949

Postwar Germany

Category Archives: Crime

Shopping on the black market

09 Tuesday Oct 2012

Posted by Anika in Crime

≈ 2 Comments

Tags

black market, cigarettes, marks, racketeer, schieber

Prices on the postwar black market weren’t just a product of supply and demand. Demand for almost everything was high, supply low. There were price fluctuations for some products, especially fresh food or grain. Otherwise, prices staid surprisingly constant, even between different cities and their different black markets.

Professional black marketeers – called Schieber — grew powerful enough to set stable prices for many goods. These big racketeers ran organizations of small-time black marketeers who did the footwork. During the hunger protests in 1946 and 1947, Germans harangued against the Schieber for setting prices too high. “Hang the Schieber!” they wrote on their signs. The Schieber grew fat and wealthy on the backs of the common people.

Yet the black market was the only truly functioning economy. No one had a choice but to pay the market prices. I’ve gathered many examples from my research, which show just how horribly expensive the black market was.

First, keep in mind the average worker might earn about 150 marks a month in postwar Germany.

1 pound of meat = 3 bottles of wine OR 15 cigarettes OR 80 marks

1 pound of coffee = 500 marks

1 pound of butter = 250 marks

1 pound of bacon = 200 marks

1 pound sugar = 90 marks

1 pound flour = 30 marks

A 3 pound loaf of bread = 25 marks

A man’s suit = 1,000 marks

A ladies’ dress = 800 marks

1 bottle of schnapps = 200 marks

1 pair of nylons = 200 marks

Black Market

02 Tuesday Oct 2012

Posted by Anika in Crime

≈ Comments Off on Black Market

Tags

black market, cigarettes, ration, Reichsmark

Towards the end of World War II, the Nazi state had more and more trouble providing basic food and goods to the German population. To supplement the state-imposed ration, or to horde goods for after the war, some Germans traded on the black market. A risky business — punishment was harsh and could include death.

These limited black markets blossomed after the war into a national phenomenon. Everybody traded on the market, the only way for many people to survive, especially in the cities. The regular food ration set by the Allies was called the “Death Ration” by the Germans. It was too little to live on, and hit mainly old people, those who didn’t or couldn’t work, and — ironically — mothers (as if they didn’t need more calories caring for a household!). The black market supplied what the ration didn’t.

How did it work?

Germany functioned largely on barter. Let’s say a mother in Hamburg had 3 pairs of silk stockings to trade. She wants to supplement the fat ration for her family because fat equals calories that stick to your ribs. She finds a public square or certain street where it’s known people congregate to trade, one of the many black markets in the city. Since such trades are illegal in postwar Germany, people don’t usually shout what they need or write it on a sign. The mother could subtly show her stockings in her purse to the people around her. Or she might wander around, whispering what she wants over and over until someone agrees to a trade. Her silk stockings would buy her one bottle of cooking oil or a pound of butter.

The Reichsmark was all but useless after Nazi Germany’s collapse. The new currency was the cigarette, preferably American ones (called “Amis”). In certain times and places, one Ami cigarette cost between 6 and 20 Reichsmarks. In Frankfurt, the Americans set up a barter center where Germans could trade products legally. American soldiers and racketeers took advantage of the situation, and if they worked together, they could both make a killing. The racketeer has a starting capital of 1 Leica camera. He trades it with a soldier for 5,000 cigarettes. The soldier exports it to the States, and someone sells it for him for $600. That money, back in Germany, can buy 134,000 cigarettes or 27 Leicas.

Most people on the postwar black market weren’t in it to get rich. They were trying to survive in a world where everything — food, clothing, shoes, light bulbs, needle and thread, coal and most other things — were scarce.

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