Even after 1920 East Prussia remained an agricultural country, boasting few mineral resources and little industry. The new insular position of the province created great problems for the sale of essential products like grain and the important East-West trade. Numerous businesses underwent serious crises and incurred debts. There was however help in the form of government subsidies.
The young Weimar Republic was hard hit by the 1923 hyperinflation and the 1930 world economic crisis. Many people, especially the unemployed, lived through a catastrophic emergency without any significant social security. Producer prices for food products collapsed. This drove many farms into insolvency, especially in agricultural regions such as East Prussia. The rural exodus remained high.
The country also suffered from a sales crisis as distribution through the "Polish corridor" to the cut-off empire was complicated. However, the sea route across the Baltic Sea, which avoided having to cross borders, extended routes and delivery times. This made East Prussian export goods such as butter and (Tilsit) cheese more expensive, although they had previously been successfully marketed in Berlin and other German cities.
Illustration:
East Prussian emergency money, so-called "Serienscheine" (paper banknotes)
Before the beginning of hyperinflation in 1923, the nominal value seldom exceeded 10 German marks, but the elaborate design, due to the often strong demand from collectors - very similar to stamps - brought added value for the issuing office. The banknotes were often elaborately designed, partly in the form of colourful prints, partly in the form of photo series showing the place or its surroundings.