Struggling US towns print their own currency

telegraph. ^ | 08 Apr 2009 | Tom Leonard in New York

[JoeProBono]

Communities across America are bypassing the dollar and creating their own currencies in an attempt to help both consumers and businesses struggling in the recession. The idea, borrowed from the Depression era when the currencies were known as "scrip", is designed to boost local spending and keep money circulating within the community.

[Crim]

I still dont get how this is even legal....

[Vince Ferrer]

If they would back the currency with Gold, it would really take off.

[JoeProBono]

Depression Era Script

[Semper Mark]

Whatever can be used in exchange for goods and services.

[conivorous]

I get a book of local scrips every month. I think most people call them coupons.

[KarlInOhio]

Essentially they are like gift certificates for local stores, just like a mall would sell gift cards for use in stores inside the mall.

[Tublecane]

“I still dont get how this is even legal....”

yeah, what happened to the Fed’s monopoly power?

[sten]

you mean.. if the town wants to help itself, it can print its own currency to insure the commerce stays within the community?

whoa... you mean offshoring all our production/manufacturing actually hurts the economy? whoa... whowouldathunkit ?!

[papasmurf]

They got the idea from Ron Paul, the FBI didn't like it too much, either.



This isn't real money, it's welfare, of a sort, given out to spend locally. And it's not widespread as the article indicates.

There is no such thing as a free ride. This WILL come back to bite them in the arse, mark my words. Then, who'll pick up the tab for their insanity?

You and I and all of the others in this Country who actually pay taxes.

[Tublecane]

I don’t get why this is a good idea to anyone but local businesses.

[Frantzie]

Odd - I do not recall this being used when Bush was President.

[SpaceBar]

Communities across America are bypassing the dollar and creating their own currencies...

If one reads the article, the above assertion is found to be complete and utter journalistic bovine excrement. They give three isolated examples that amount to the issuance of redeemable coupons, acceptable at certain business, and little different legally than the things you can clip from the Sunday paper. If you "print your own money" you go to federal prison. Period.

[Tublecane]

“you mean.. if the town wants to help itself, it can print its own currency to insure the commerce stays within the community?

whoa... you mean offshoring all our production/manufacturing actually hurts the economy? whoa... whowouldathunkit ?!”

Yeah, why don’t we all just retreat into self-sufficient local societies? Who needs the rest of the state/country/world? Division of labor? Comparative advantage? What’r those?

[hinckley buzzard]

Scrip was used by the City of Ceveland among many others to pay employees when the City was broke. They basically were promissory notes that local merchants were pressured to accept in lieu of cash, much the same as accepting a check would be today. The use of scrip has a long history in the US including issuance by the military and by private firms such as mining companies, to be used to buy merchandise at "the company store."

Food stamps are scrip, for that matter.

[DB]

As long as the tax man gets his share in dollars...

[JoeProBono]

http://en.wikipedia.org/wiki/Currency

[Steel Bill]

As long as the script you print does not resemble real currency or says it is legal tender you can print all the script you want. It is no different than using coupon books.

[Forward the Light Brigade]

Not a bad idea. Maybe we should bring back wooden nickles—or better yet silver dollars (but now a days they would be the size of a dime). In the Civil War they were called shin plasters.

[Steel Bill]

While the idea of script is a good but one that is only a band aid on a bigger problem. I live way out in the country and we tend to do a lot of bartering around here. The good thing about bartering is that unlike the script thing the tax man don’t get no cut.