Complementary Currencies/BoK EN - Stamp Scrip

General Description

Stamp Scrip was emergency currency issued by cooperatives, associations, municipalities, companies and ordinary citizens during the financial and economic crisis of the 1930’s. They re inspired by the ideas of the economist Silvio Gesell. The unique aspect of stamp scrip is that it is free of interest. Instead most stamp scrip is characterized by a demurrage; a fee for hoarding money. Usually it means that, with predetermined intervals, a stamp should be bought and attached to the scrip in order for the scrip to remain valid. In some cases stamp scrip looses its entire value after a predetermined period of time. Stamp scrip usually circulated within small communities of households and businesses, complementary to the national currency. Especially the United States, Germany and Austria witnessed the emergence of stamp scrip such as the ‘Wära’, ‘Arbeitswertscheinen’ and the Chicago Recovery Certificates.

Purpose

The purpose of stamp scrip was to revitalize economic activity by providing an alternative means of payment during the Great Depression. Because of the crisis people tended to hoard their money with the result that money was short in supply. In addition the purpose of stamp scrip was to speed up economic activity by introducing a demurrage on this alternative means of payment. Contrary to conventional money, stamp scrip is imbued with this mechanism that discourages the hoarding of money and speeds up its circulation. After all no interest is received on savings, and demurrage actually encourages spending.