Coffin, Donald A wrote:
>Scrip was fairly common, and not just early in the 1930s.  My mother 
>taught in Terre Haute, Indiana, in 1940, and was paid for a few 
>months in scrip.  The school system's (property) tax revenue was not 
>being effectively collected, as I recall the explanation.  The 
>interesting institutional question, which, unfortunately, my mother 
>did not know the answer to is how the merchants who accepted the 
>scrip eventually (or immediately) got paid.  (If immediately, I'd 
>guess that the scrip was discounted.)  Like Bob, I can't get more 
>information at this time.



Scrip and other interesting forms of money substitutes were also 
widely used during the panics under the US National Banking System, 
especially in 1893 and 1907.  I examine some of the ones in use in 
1907 in this paper from 1990:  http://www.jstor.org/stable/1059365

Steve Horwitz