It is easy enough to see how the lead digit was struck as "3" in error at the factory and then overstamped with "5" in order to make the serial number correct. Seeing that the second digit is a "3" also, makes this error easily understandable. Nothing more than an honest error in the manufacturing process. I think it adds personality to the pistol.
It makes you think about it a little more. Be prepared, however, for the outcries of those who are of the mind that all Lugers that left Mauser were perfect in every respect. The belief that Nazi quality control was so exacting removed the possibility of any human errors and gave Mauser workers the ability to "Walk on water" if you will. No gun ever left Mauser with overstamped numbers, un-numbered axel pins, grips one number off ... ever. These are most likely eBay winnings added far after production. So don't be surprised to hear "Boosted" or "Fake" used to describe anything other than a perfect piece. Perhaps it is, but perhaps not. It's all part of the hobby. I believe the overstamp occured at birth, for what it's worth. Congratulations, 1936s can be a tough year to find. You own a beautiful example.
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