5 Gulden – Free city of Danzig

In 1932, the Free City of Danzig, a semi-autonomous city-state under League of Nations protection, faced severe economic turmoil exacerbated by the global Great Depression. Its unique political status, separated from Germany by the Treaty of Versailles yet overwhelmingly populated by ethnic Germans, created a complex monetary landscape. While politically distinct, Danzig's economy was deeply integrated with Germany's, and since 1923, its official currency had been the Danzig gulden, which was pegged at par to the German Reichsmark. This peg meant Danzig's financial stability was directly hostage to the escalating banking and currency crises unfolding in Weimar Germany.

The situation deteriorated sharply following Germany's own financial collapse. In July 1931, the German government imposed strict capital controls and a de facto banking freeze, which severely disrupted the flow of money and credit into Danzig. As Reichsmarks became scarce and were hoarded, Danzig experienced an acute liquidity crisis. To keep local commerce functioning, the Danzig Senate was forced to authorize the issuance of Notgeld (emergency money) in small denominations. These temporary notes, issued by the Danzig Central Bank and backed by city assets, became a vital stopgap to prevent a complete economic standstill, circulating alongside the official but scarce gulden.

By the end of 1932, the currency situation reflected Danzig's precarious dependency. The gulden's peg remained formally intact, but the reliance on emergency scrip highlighted the fragility of its financial autonomy. The crisis deepened political tensions within the city, fueling support for the local Nazi Party, which advocated for full reunification with Germany as a solution to economic hardship. Thus, the monetary instability of 1932 was not merely an economic issue but a key factor eroding the viability of Danzig's independent status, setting the stage for the geopolitical crises of the late 1930s.