Silver certificate dollar bill 1935 e

Silver certificate dollar bill 1935 e

During the Great Depression, many people hoarded any money they had. The belief at the time was that by keeping your money hidden in a safe or locked away, it wouldn’t lose its value. This meant cash was not as readily available. Many vendors would only accept payment in gold or silver coins rather than paper currency, which led to the creation of “scrip” or local currency. These were small tokens or vouchers you could use to buy certain goods and services. They were typically either tokens redeemable for goods at a particular company or credits on an account you could use at multiple businesses within a particular city or region.

How Scrip Helped Thrive During the Great Depression

People hoarded money during the Great Depression because they were worried about losing its buying power. This made it harder for businesses to sell their products, as people didn’t have as much cash on hand to buy what they needed. Scrip helped businesses thrive during this time by allowing customers who didn’t have much cash to still be able to buy their products.

Scrip also enabled people to spend their savings, which helped keep those savings from losing their value. By exchanging their savings for scrip, people were able to spend it and keep it from becoming worthless.

Scrip also helped people who didn’t have a bank account keep their savings safe. At the time, banks were failing as the economic downturn continued. People with money in those banks were worried they wouldn’t be able to access it, and scrip provided a safer way to keep savings out of the banks.

Why did businesses create scrip during the Great Depression?

While some businesses created scrip to help their customers, others did it to help themselves. Many businesses didn’t have enough money to buy the supplies they needed and couldn’t get more credit. If customers only had paper money as payment, it wasn’t enough to cover all their purchases. Scrip provided businesses with a way to accept payment for their products without having to take in paper money.

Many businesses also created scrip to replace paper money as a way to build up the local economy. They hoped scrip would bring more business to the community, which would help local businesses thrive and bring more jobs to the area.

Types of Scrip

– Complementary scrip – This is a type of scrip that a company issues for their own product. For example, if a grocery store created scrip for their canned goods, the scrip might read “one can of beans redeemable at the ABC grocery store.” This type of scrip can’t be exchanged for any other goods.
– Credit scrip – Credit scrip is similar to a gift card. A store issues scrip in the form of a gift certificate that can be redeemed for goods at their store. The scrip doesn’t have to be redeemable just at the issuing store. It can be used at any business that accepts scrip.
– Commodity scrip – Commodity scrip is redeemable for goods that are valuable enough to be traded for paper money. For example, a grocery store might issue scrip for a can of beans and a can of corn and a bag of coffee. This type of scrip is generally only issued during times of economic hardship.

How to use a scrip

If you wanted to use scrip, you would buy goods from a store that issued scrip. The store would then give you a scrip for the items you purchased. You could then take that scrip to another store that accepts scrip and exchange it for food or other goods.

Some businesses would allow you to exchange your scrip for goods immediately while others would give you a scrip that you could later redeem. This depended on the type of scrip you received. If the scrip was commodity scrip, you likely had to wait until someone was willing to trade paper money for the goods represented by the scrip.

Final Words: Was Scrip a Good Thing?

Scrip was a good thing during the Great Depression because it allowed people to buy goods and services they needed. It also provided a way for stores to accept payment they otherwise couldn’t get.

About the author

Anthony Clarck

Anthony Clarck

View all posts