Phil pages July-Aug-Final - The Royal Philatelic Society of Canada

Postage Rates of the German Democratic Republic
and the Impact of Reunification – 1990-1991
By Kimber A. Wald
When the Berlin Wall was breached in November 1989, the
postal systems of the German Democratic Republic (DDR) and
the Federal Republic of Germany (BRD) were sharply different.
Rates of the BRD were adjusted over the years as inflation
took its toll. Meanwhile, the DDR operated a subsidized system.
As with most reunification matters, the issue before West
German government bureaucrats was how to absorb the DDR
post office rates and procedures into those of the BRD.
The rate differential problem was compounded by the fact that the
DDR ost mark was valued considerably lower than the currency of
the BRD. During transition, it was decided to introduce the BRD
deutsche mark in the DDR on July 1, 1990. Pictorially setting the
reunification stage was a set of nine “Famous Buildings and
Monuments” definitive stamps issued the next day, July 2. These
were the first DDR stamps to be inscribed Deutsche Post since 1953.
Coincidentally, a revised schedule of postal rates was also
introduced one day earlier in the east. It was not at the level of
the BRD schedule due to concerns with the impact of the currency
reform. Thus, a two tier postal rate system existed in the
divided and later reunified Germany until April 1, 1991.
Since 1971 there had been no increase in DDR rates. At the
same time, BRD initiated rate increases five times. Selected
BRD rate increases over the 19 years were:
Local letter (0-20 grams) 500%
Postcards – Local 400%
Inland letter (0-20 grams) 233%
Postcards – Distant 140%
Foreign letter (0-20 grams) 133%
Postcards – Foreign 100%
Citizens of East Germany faced a major financial shock as
their postage rates transitioned to those of the west, especially
when the currency change is also included. For example, since
The 60 pfennings domestic postcard rate on an item from Pauen
to Leipzig, both in the former DDR. The Apri l1, 1991 rate
schedule applied. A Berlin adhesive was used on the final day of
its validity, Dec. 31, 1991.
A Sept. 25, 1990 airmail letter from Steinach to Maryland illustrating
the 70 pfennigs foreign letter rate (to 20 grams) and the 30 pfennigs
airmail rate (to 10 grams). The July 1, 1990 schedule applied.
Oct. 1, 1954, DDR citizens could send a letter to another location
in their city for only 10 pfennigs if it weighed less than 20
grams. The same letter sent to a location outside the city cost a
mere 20 pfennigs. The transitional July 1, 1990 rate schedule
consolidated both into a single sky-high charge of 50 pfennigs
payable in the new currency. If that was not bad enough, this
rate doubled to 1.00 DM after reunification on April 1, 1991.
Another example is the cost of sending a postcard. Since March
1, 1946, a DDR citizen could also send a postcard anywhere in
town for a mere 10 pfennigs. This rate was extended to inland destinations
October 1, 1954, and to all Eastern Block countries except
for Albania and Bulgaria, effective Jan. 1, 1960. Thus, in 1962,
Frau Inge Leupold, a resident of Zwickau, could send postcards to
her husband, Horst, a circus performer, whether he was performing
in Dresden, DDR or on tour in the Mongolian Peoples’ Republic
and the postage would only be 10 pfennigs.
Subsequent to the transitional July 1, 1990 rate increase,
West German businesses, particularly those of a philatelic
nature, took advantage of the rate differential by having their
bulk mailings posted in the DDR. Considerable money could be
saved on a major mailing and the practice was perfectly legal.
After reunification occurred on Oct. 3, 1990, the two-tier rate system
continued in effect for another six months until the consolidated
schedule was introduced on April 1, 1991. Apparently the Federal
Republic postal authorities had some concern about the radical
increase in postage charges for so many categories and they distributed
a free packet of 10 1-DM stamps to every household in the former
DDR. The cover of the packet was inscribed “Postage Stamps
for You” and bore the coats-of-arms of each of the eastern provinces.
The schedules present the DDR rates for selected categories
and services from March 1, 1946 through the final consolidated
schedule that was effective April 1, 1991. Readers will be able to
gauge the skyrocketing postage rates the DDR citizens faced as
they had to confront many changes of radically different societies.
Le philatéliste canadien / The Canadian Philatelist Juillet - Août 2000 / 169