A Currency In Every Pot

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:

Mecosta County

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]

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.

[Lamar]

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]

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

[hmm]

Fly Fatass FLY!

[hmm]

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

[Silentz]

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

[T]

I see a drastic mistake in my future.

Beyond posting here, you mean?

[prolefeed]

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]

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.