For a Spaniard, it is not difficult to understand what the expression "emergency money" refers to, since during the Civil War, paper money issuers proliferated throughout Spain, mainly on the Republican side, where political, military, and economic power was deeply decentralized.
This phenomenon was nothing more than the aftermath of something that had already taken place in Europe just 20 years earlier, during World War I. Throughout the conflict, the shortage of metals, mainly used for the manufacture of war material, as well as the difficulty in issuing coins in gold, silver, copper, and nickel, forced the countries at war to issue bonds or "emergency banknotes."
Emergency financing
As their name suggests, these issues were intended to finance the suffering state coffers, which had been ravaged by the harshness of the war. Most of the countries involved in the conflict, from Austria to France, Belgium, Russia, and Italy, issued "emergency banknotes," although the German case stands out for its incredible proportions.
Known as "Notgelds," Germany's "emergency banknotes" were introduced in 1914 and, just two years later, had completely replaced copper coins, which virtually disappeared from the market.
At first, the population was reluctant to accept banknotes whose real value was practically unknown, which is why eye-catching designs were included to make them more attractive. This phenomenon led to the same banknote having the same image on the front and up to six or seven different backs.
The 'Grossgeld'
The end of the Great War did not slow down the proliferation of banknote issues in Germany. On the contrary, the subsequent economic crisis and hyperinflation—which lasted until 1924—led to the emergence of the 'Grossgeld', large banknotes whose validity was usually limited to a municipality and a specific period of time.
The situation became so precarious that the Reichbank had no choice but to accept the issues made by multiple factories, provided they complied with basic security standards. Despite this, banknotes appeared for places that only existed in the imagination of these improvised bankers. There were also bills made of linen, silk, and leather, while zinc, nickel, iron, coal, porcelain, and even ceramics had to be used for coins.