No, that is not correct about the numbers and/or the Versailles Treaty.
DWM was limited in what they could make, but you find many 1921 army and police lugers.
It depends on how much you paid on whether you over-paid. No offense meant, but sometimes its best to study up before purchasing.
I have made many too early buys (i.e. it will be worth what I paid in a few years, but right now its a bit high
)
Ed