Looking harder at Jim's "j" and comparing it with other examples leads me to believe that the original stamped letter may have been a "j" and not an "i." Possibly, the original stamp was poorly struck and someone touched it up with an engraving tool. This would eliminate the Li. step above but does not really change the overall picture.
It is also possible and perhaps probable that the L. stands for Landespolizei in much the same way that S. stands for Schutzpolizei in Prussian markings.
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