A Currency In Every Pot

Jesse Walker | July 27, 2009

With California's IOUs as its newpeg, The Wall Street Journal looks back at the alternative local currencies -- some private, some public -- that flourished during the depression of the '30s. Be sure to check out the slideshow that goes with the story; it's filled with colorful scrips like this western Michigan money:

The IOUs in California are rather different: Not only are they not as pretty but, as Kenneth Anderson notes, they "they are made out to particular individuals for particular amounts -- they physically resemble checks." There have been informal and formal efforts to set up secondary markets for the IOUs, but I wouldn't expect that paper to become anything akin to a circulating currency.

[Hat tip: Bryan Alexander.]

Comments

T|7.27.09 @ 12:35PM|#

A future claim against the state of California doesn't strike me as a good bet unless I can get a healthy discount off face value. But that's just me.

|7.27.09 @ 12:43PM|#

T: That issue was looked at over at the Daily Capitalist here. The SEC is already on record!! I admit, the mock up of the IOU is what drew me to the story.

hmm|7.27.09 @ 12:47PM|#

Didn't the government recently shutdown one of those evil private currency people?

hmm|7.27.09 @ 1:08PM|#

Fly Fatass FLY!

hmm|7.27.09 @ 1:09PM|#

Wrong thread. God I need to stop working and posting. I see a drastic mistake in my future.

|7.27.09 @ 1:27PM|#

Lamar, great link. I'm intrigued by the part about paying your taxes with the IOUs...

T|7.27.09 @ 1:38PM|#

I see a drastic mistake in my future.

Beyond posting here, you mean?

|7.27.09 @ 1:40PM|#

they are made out to particular individuals for particular amounts -- they physically resemble checks."

They are essentially post-dated checks, except no one is honest enough to put in for the date "whenever we sorta get our fucking act together".

T|7.27.09 @ 1:52PM|#

I'm intrigued by the part about paying your taxes with the IOUs...

I think it's a fantastic idea. Get the IOUs countersigned to you and turn them right back in to the state. But Cali was trying to throw a monkey wrench in that plan by making it onerous to tranfer the IOUs. I forget how.