Miami Valley Coin Club

Scrip: An Alternative for Legal Tender

Scrip was issued by State, County & City municipalities or private merchants or other businesses. It was issued not only by mining companies, but also by industrial giants. Scrip was not legal tender and was usually issued in denominations less than $1 during times of financial stress (when coins were hoarded and unavailable) to help businesses make change for their transactions. In general, this scrip was only accepted locally.

Most scrip issues happened during the Great Depression, approximately 1932 to 1938. Scrip was issued by a company to pay its employees and usually could only be exchanged in company stores owned by the employers. Doing so would allow the companies to avoid paying taxes and other costs associated with paying employees in cash. Often the scrip was worth less than actual currency, forcing employees to shop where prices were inflated and quality was poor. Often left with no money by the end of the week, it made it impossible for employees to leave the company and find other work.

 Fair Labor Act of 1938 prohibited employers from paying employees with scrip and required workers to be paid in actual currency.

There are many ways to collect scrip:

• By location
• By theme
• By denomination
• Use your imagination

Despite the 1938 law, scrip is alive and well today, if you take the time to recognize its different forms:

• Gift cards
• Local currencies
• Coupons
• Vouchers