The Story of Money: 14--Banking Panics and Scrip
|Section 14: Progress and problems||Previous | Next | Section Index|
|Banking panics and scrip
In times of economic unrest, people and businesses would try to cash in their bank notes and deposit claims. Often banks could not pay all claims at once, and some banks even ceased operating. During these banking panics, people turned to unofficial types of money to continue trade. Scrip—an informal kind of emergency money a bit like an “I.O.U.”—was issued by bank clearinghouses, businesses, and others during panics.