|
|
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.
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. |
|
|
Copyright © 2010 CelebrateBoston.com - All Rights Reserved
|