The Reichsbank (; 'Bank of the Reich, Bank of the Realm') was the central bank of the German Reich from 1876 until 1945. History until 1933 The Reichsbank was founded on 1 January 1876, shortly after the establishment of the German Empire in 1871. It was the central bank of Prussia, under the close control of the Reich government. Its first president was Hermann von Dechend. Before unification in 1871, Germany had 31 central banks – the Notenbanken ("note banks"). Each of the independent states issued their own money. In 1870, a law was passed that forbade the formation of further central banks. In 1874, a draft banking law was introduced in the Reichstag, the federal legislature of the German Reich. After several changes and compromises, the law was passed in 1875. Despite the creation of the Reichsbank, however, four of the Notenbanken – Baden, Bavaria, Saxony and Württemberg – continued to exist until 1914 . The Reichsbank experienced both stable and volatile periods. Until World War I, the Reichsbank produced a very stable currency called the Goldmark, but at the outbreak of WWI the link between the mark and gold was abandoned, resulting in the Papiermark. The expenses of the war caused inflationary pressure and the mark started to decrease in value . The defeat of Imperial Germany in 1918, the economic burden caused by the payment of war reparations to the Allies, and the social unrest in the early years culminated in the German hyperinflation of 1922–23. Economic reforms, such as the issue of a new provisional currency – the Rentenmark – and the 1924 Dawes Plan, stabilised German monetary development and thus the economic outlook of the Weimar Republic. One of the key reforms caused by the Dawes Plan was the establishment of the Reichsbank as an institution independent of the Reich government. On 30 August 1924, the Reichsbank began issuing the Reichsmark, which served as the German currency until 1948. Nazi period The seizure and consolidation of power by the Nazis during the years of the Third Reich also greatly affected the Reichsbank. A 1937 law re-established the Reich Government's control of the Reichsbank, and in 1939, the Reichsbank was renamed the Deutsche Reichsbank (“Bank of the German Reich”, lit.: “Bank of the German Realm”) and placed under the direct control of Adolf Hitler, with Walther Funk as the last president of the Reichsbank, from 1939