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When did this process begin/end?
Long, complicated story short.
In June, 1948 the West revalued the Mark and left the Soviet Zone post offices flat-footed because they had no stamps to reflect the revaluation (10 to 1) Until new stamps were printed in July, 1948 (actually overprinted Scott 10N1 – 10N16) the post offices used their hand stamps to verify that the new currency rate had been paid.
The hand stamps weren't in use for long so, anticipating a scarcity for collectors, some enterprising people kept making the hand stamped issues!
This applies to all the 1948 hand stamped issues in the Soviet Zone.
Pretty much the same applies to all cancelled stamps issued under Russian Occupation. (Mecklenburg–Vorpommern, Saxony, East Saxony, West Saxony and Thuringia) A lot of them were cancelled for collectors. Michel doesn't recognize "high CV" (Over 2 Euro) cancelled stamps without expertization.
I collect this area and stick to mint stamps. The color, gum and paper variation, along with the many plate flaws, are enough to keep me busy.