City of Boston Emergency Dollar 10-Mar-1933

Boston Depression Currency
 

In February, 1933 there was a financial crisis. Foreigners and citizens were redeeming federal notes for gold bullion, drawing huge reserves out of the banking system. President Hoover would not close the banks unless incumbent Franklin Roosevelt agreed before taking office, which he did not due to a miscommunication. The crisis soon became a panic or "run" on the banks, with people withdrawing all of their funds. About 6,000 banks failed in March. Many cities, banks, and companies could not pay their bills as the banks were broke. Above is a sample dollar that was printed by the City of Boston to pay its bills.

Boston Clearing House Dollar 10-Mar-1933

Great Depression currency was referred to as "scipts" or "scrips". They were essentially promissory notes, redeemable—hopefully—when the crisis was over and the banking system solvent again. The Boston Clearing House was presumably a bank or consortium of banks that could not pay its depositors, and thus emergency notes were issued in place of "real" notes. Observe that "PAID" was stamped through the above note, indicating it was actually issued and later redeemed.

Elmer's Stamp & Coin Shop Script 6-Mar-1933
 

The financial panic was so bad that even some businesses used scripts. The above 25 cent script was likely issued as a promissory note, or as a pawn ticket. I can't imagine living through the Great Depression. In comparison, the "flight from the dollar" in the early 1970's, merely led to high inflation and unemployment, and this author will never forget that period.
 

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