A scrip (or '' chit'' in India) is any substitute for

legal tender Legal tender is a form of money that Standard of deferred payment, courts of law are required to recognize as satisfactory payment in court for any monetary debt. Each jurisdiction determines what is legal tender, but essentially it is anything ...

. It is often a form of

credit Credit (from Latin verb ''credit'', meaning "one believes") is the trust which allows one party to provide money or resources to another party wherein the second party does not reimburse the first party immediately (thereby generating a debt) ...

. Scrips have been created and used for a variety of reasons, including exploitative payment of employees under

truck system Truck wages are wages paid not in conventional money but instead in the form of payment in kind (i.e. commodities, including goods and/or services); credit with retailers; or a money substitute, such as scrip, chits, vouchers or tokens. Truc ...

s; or for use in local commerce at times when regular

currency A currency is a standardization of money in any form, in use or circulation as a medium of exchange, for example banknotes and coins. A more general definition is that a currency is a ''system of money'' in common use within a specific envi ...

was unavailable, for example in remote coal towns,

military base A military base is a facility directly owned and operated by or for the military or one of its branches that shelters military equipment and personnel, and facilitates training and operations. A military base always provides accommodations for ...

s, ships on long voyages, or occupied countries in wartime. Besides company scrip, other forms of scrip include land scrip,

voucher A voucher is a bond of the redeemable transaction type which is worth a certain money, monetary value and which may be spent only for specific reasons or on specific goods. Examples include house, housing, travel, and food vouchers. The term vou ...

token coin In numismatics, token coins or trade tokens are coin-like objects used instead of coins. The field of token coins is part of exonumia and token coins are token money. Their denomination is shown or implied by size, color or shape. They are of ...

s such as subway tokens,

IOU An IOU (Abbreviation, abbreviated from the phrase "I owe you") is usually an informal document acknowledging debt. An IOU differs from a promissory note in that an IOU is not a negotiable instrument and does not specify repayment terms such as th ...

s, arcade tokens and tickets, and points on some credit cards. Scrips have gained historical importance and become a subject of study in

numismatics Numismatics is the study or collection of currency, including coins, tokens, paper money, medals, and related objects. Specialists, known as numismatists, are often characterized as students or collectors of coins, but the discipline also inclu ...

and

exonumia Exonumia are numismatic items (such as tokens, medals, or scrip) other than coins and paper money. This includes "Good For" tokens, badges, counterstamped coins, elongated coins, encased coins, souvenir medallions, tags, wooden nickels and o ...

due to their wide variety and recurring use. Scrip behaves similarly to a currency, and as such can be used to study

monetary economics Monetary economics is the branch of economics that studies the different theories of money: it provides a framework for analyzing money and considers its functions (as medium of exchange, store of value, and unit of account), and it considers how m ...

History

A variety of forms of scrip were used at various times in the 19th and 20th centuries.

Company scrip

Company scrip is a substitute for currency to pay a company's

employee Employment is a relationship between two party (law), parties Regulation, regulating the provision of paid Labour (human activity), labour services. Usually based on a employment contract, contract, one party, the employer, which might be a cor ...

s. In

United States The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic of 50 U.S. state, states and a federal capital district, Washington, D.C. The 48 ...

mining Mining is the Resource extraction, extraction of valuable geological materials and minerals from the surface of the Earth. Mining is required to obtain most materials that cannot be grown through agriculture, agricultural processes, or feasib ...

logging Logging is the process of cutting, processing, and moving trees to a location for transport. It may include skidder, skidding, on-site processing, and loading of trees or trunk (botany), logs onto logging truck, truckscompany store. In this way, the company could charge enormous markups on goods, making workers completely dependent on the company, thus enforcing a form of

loyalty Loyalty is a Fixation (psychology), devotion to a country, philosophy, group, or person. Philosophers disagree on what can be an object of loyalty, as some argue that loyalty is strictly interpersonal and only another human being can be the obj ...

to the company. Additionally, while employees could exchange scrip for cash, this could rarely be done at face value. This kind of scrip was valid only within the settlement where it was issued. While store owners in neighboring communities could accept the scrip as money, they rarely did so at face value, as it was worth less. When U.S. President

Andrew Jackson Andrew Jackson (March 15, 1767 – June 8, 1845) was the seventh president of the United States from 1829 to 1837. Before Presidency of Andrew Jackson, his presidency, he rose to fame as a general in the U.S. Army and served in both houses ...

issued his Specie Circular of 1836 due to credit shortages, Virginia Scrip was accepted as payment for federal lands. In the 19th century, the federal government in Western

Canada Canada is a country in North America. Its Provinces and territories of Canada, ten provinces and three territories extend from the Atlantic Ocean to the Pacific Ocean and northward into the Arctic Ocean, making it the world's List of coun ...

offered money scrip (valued at $160 or $240) or land scrip, valued at or , to

Métis The Métis ( , , , ) are a mixed-race Indigenous people whose historical homelands include Canada's three Prairie Provinces extending into parts of Ontario, British Columbia, the Northwest Territories and the northwest United States. They ha ...

people in exchange for their Aboriginal rights. During the

Great Depression The Great Depression was a severe global economic downturn from 1929 to 1939. The period was characterized by high rates of unemployment and poverty, drastic reductions in industrial production and international trade, and widespread bank and ...

, at the height of the crisis, many local governments paid employees in scrip. Vermilion, Alberta was just one example. In the U.S., payment of wages in scrip became illegal under the Fair Labor Standards Act of 1938. The expression ''scrip'' is also used in the

stock market A stock market, equity market, or share market is the aggregation of buyers and sellers of stocks (also called shares), which represent ownership claims on businesses; these may include ''securities'' listed on a public stock exchange a ...

where companies can sometimes pay

dividend A dividend is a distribution of profits by a corporation to its shareholders, after which the stock exchange decreases the price of the stock by the dividend to remove volatility. The market has no control over the stock price on open on the ex ...

s in the form of additional shares/stock rather than in money. It is also a written document that acknowledges debt. After

World War I World War I or the First World War (28 July 1914 – 11 November 1918), also known as the Great War, was a World war, global conflict between two coalitions: the Allies of World War I, Allies (or Entente) and the Central Powers. Fighting to ...

and

World War II World War II or the Second World War (1 September 1939 – 2 September 1945) was a World war, global conflict between two coalitions: the Allies of World War II, Allies and the Axis powers. World War II by country, Nearly all of the wo ...

, scrip was used as ''

notgeld (German language, German for 'emergency money' or 'necessity money') is money issued by an institution in a time of economic or political crisis. The issuing institution is usually one without official sanction from the central government. This ...

'' ("emergency money") in

Germany Germany, officially the Federal Republic of Germany, is a country in Central Europe. It lies between the Baltic Sea and the North Sea to the north and the Alps to the south. Its sixteen States of Germany, constituent states have a total popu ...

and

Austria Austria, formally the Republic of Austria, is a landlocked country in Central Europe, lying in the Eastern Alps. It is a federation of nine Federal states of Austria, states, of which the capital Vienna is the List of largest cities in Aust ...

. Scrip was used extensively in prisoner-of-war camps during World War II, at least in countries that complied with the

Third Geneva Convention The Third Geneva Convention, relative to the treatment of prisoners of war, is one of the four treaties of the Geneva Conventions. The Geneva Convention relative to the Treatment of Prisoners of War was first adopted in 1929, but significantl ...

. Under the Geneva Conventions, enlisted prisoners of war could be made to work and had to be paid for their labor, but not necessarily in cash. Since ordinary money could be used in escape attempts, they were given scrip that could only be used with the approval of camp authorities, usually only within the camps. Poker chips, also referred to as

casino token Casino chips (also known as poker chips, gaming tokens, or checks/cheques) are small discs used as currency in casinos. Larger, rectangular gaming plaques may be used for high-stakes games. Poker chips are also widely used as play money in cas ...

s, are commonly used as money with which to gamble. The use of chips as company money in the early 19th century in Devon, England, in the Wheal Friendship copper mine gave its name to a local village of Chipshop.

Stamp scrip

Stamp scrip, sometimes called coupon scrip, was a type of local money designed to be circulated and not to be hoarded. One type of this worked this way. Each scrip certificate had printed boxes; every month a stamp costing a certain amount (in a typical case, 1% of the face value) had to be purchased and recorded in a box, otherwise the scrip lost all its value. This provided a great incentive to spend the scrip quickly. The scheme was used successfully in Germany and Austria in the early 1930s, after national currencies collapsed. National governments considered themselves threatened by the success of stamp scrip projects, and shut them down; similar misgivings discouraged their later use elsewhere. The Alberta Social Credit Party government in 1937 issued prosperity certificates, a form of provincial currency, in an effort to encourage spending. This scrip had boxes in which a stamp equal to 2% of the value had to be affixed each week. Thus, the value of the certificate was covered by the cost of the stamps at the year's end when it matured.

Modern usage

Scrip survives in modern times in various forms.

Community-issued scrip

The use of locally issued scrip accepted by multiple businesses within a community increased during the

late-2000s recession The Great Recession was a period of market decline in economies around the world that occurred from late 2007 to mid-2009.

. Community-wide scrip usage has begun or is on the rise in Ithaca, New York;

Detroit Detroit ( , ) is the List of municipalities in Michigan, most populous city in the U.S. state of Michigan. It is situated on the bank of the Detroit River across from Windsor, Ontario. It had a population of 639,111 at the 2020 United State ...

; The Berkshires; Pittsboro, North Carolina;

Traverse City, Michigan Traverse City ( ) is a city in the U.S. state of Michigan. It is the county seat of Grand Traverse County, Michigan, Grand Traverse County, although it partly extends into Leelanau County, Michigan, Leelanau County. The city's population was 15, ...

; Lamar, Colorado; Calgary, Canada; Bristol, UK; and

Hagen, Germany Hagen () is a city in the States of Germany, state of North Rhine-Westphalia, in western Germany, on the southeastern edge of the Ruhr area, 15 km south of Dortmund, where the rivers Lenne and Volme meet the Ruhr (river), Ruhr. In 2023, the ...

. Breadcoin scrip was created in Washington DC in 2016 to address food insecurity.

Thailand Thailand, officially the Kingdom of Thailand and historically known as Siam (the official name until 1939), is a country in Southeast Asia on the Mainland Southeast Asia, Indochinese Peninsula. With a population of almost 66 million, it spa ...

township A township is a form of human settlement or administrative subdivision. Its exact definition varies among countries. Although the term is occasionally associated with an urban area, this tends to be an exception to the rule. In Australia, Canad ...

Amphoe Kut Chum once issued its own local scrip called ''Bia Kut Chum'': Bia is Thai for cowry shell, which was once used as small change, and still so used in metaphorical expressions. To side-step implications that the community intended their scrip as an unlawful substitute for currency, it now issues exchange

coupon In marketing, a coupon is a ticket or document that can be redeemed for a financial discount or rebate when purchasing a product. Customarily, coupons are issued by manufacturers of consumer packaged goods or by retailers, to be used in ...

s called '' Boon'' Kut Chum.

Company-issued customer scrip

Some companies still issue scrip notes and

, good for use at company points of sale. Among these are the Canadian Tire money for the Canadian Tire stores and gasbars in Canada, and Disney Dollars (no longer printed, but still accepted), in circulation at The Magic Kingdoms and at other establishments owned and operated by The Walt Disney Company.

Scrip gift cards and gift certificates

In the retail and fundraising industries, scrip is now issued in the form of

gift card A gift card, also known as a gift certificate in North America, or gift voucher or gift token in the UK, is a prepaid stored-value card, stored-value money card, usually issued by a retailer or bank, to be used as an alternative to cash for pu ...

s, eCards, or less commonly paper gift certificates. Physical gift cards often have a magnetic strip or optically readable bar code to facilitate redemption at the point of sale. In the late 1980s, the term scrip evolved to include a fundraising method popular with non-profit organizations like schools, bands and athletic groups. With scrip fundraising, retailers offer the gift certificates and gift cards to non-profit organizations at a discount. The non-profit organizations sell the gift cards to member's families at full face value. The families redeem the gift cards at full face value, and the discount or rebate is retained by the non-profit organization as revenue.

Commercial gift cards

Visa, Mastercard and

American Express American Express Company or Amex is an American bank holding company and multinational financial services corporation that specializes in payment card industry, payment cards. It is headquartered at 200 Vesey Street, also known as American Expr ...

gift cards are initially funded by a credit card or bank account, after which the funding account and gift card are not connected to one another. Once the predetermined funds are consumed, the card number expires. A gift of a gift card, maybe in an attractive wrapper, may be seen as more socially acceptable than a gift of cash. It also prevents the gift being spent on something the giver views as undesirable (or used as savings). However, unless the gift card is obtained at a discount (paying less than the actual value of the card), buying scrip with ordinary money is arguably pointless, as it then ties up the money until it is used, and usually it may only be used at one store. Furthermore, not all gift cards issued are redeemed. In 2006, the value of unredeemed gift cards was estimated at almost US$8 billion. Another disadvantage of gift cards is that some issuers charge "maintenance fees" on the cards, particularly if they are not used after a certain period of time; or the card will expire after a given period of time. Some provinces and states in North America (e.g.

California California () is a U.S. state, state in the Western United States that lies on the West Coast of the United States, Pacific Coast. It borders Oregon to the north, Nevada and Arizona to the east, and shares Mexico–United States border, an ...

Ontario Ontario is the southernmost Provinces and territories of Canada, province of Canada. Located in Central Canada, Ontario is the Population of Canada by province and territory, country's most populous province. As of the 2021 Canadian census, it ...

Massachusetts Massachusetts ( ; ), officially the Commonwealth of Massachusetts, is a U.S. state, state in the New England region of the Northeastern United States. It borders the Atlantic Ocean and the Gulf of Maine to its east, Connecticut and Rhode ...

Ohio Ohio ( ) is a U.S. state, state in the Midwestern United States, Midwestern region of the United States. It borders Lake Erie to the north, Pennsylvania to the east, West Virginia to the southeast, Kentucky to the southwest, Indiana to the ...

, Washington) have enacted laws to eliminate non-use fees or expirations, but because the laws often only apply to single-merchant cards buyers have to review the gift card conditions prior to purchase to determine exact restrictions and fees. Additionally, if a retailer goes bankrupt, gift cards can suddenly become worthless. Even if stores do not close immediately, the company may stop accepting the cards. This became a significant issue during the

2008 financial crisis The 2008 financial crisis, also known as the global financial crisis (GFC), was a major worldwide financial crisis centered in the United States. The causes of the 2008 crisis included excessive speculation on housing values by both homeowners ...

, prompting the Consumers Union to call upon the

Federal Trade Commission The Federal Trade Commission (FTC) is an independent agency of the United States government whose principal mission is the enforcement of civil (non-criminal) United States antitrust law, antitrust law and the promotion of consumer protection. It ...

to regulate the issue.

Land scrip (United States)

Land scrip was a right to purchase federal public domain land in the United States, a common form of investment in the 19th century. As a type of federal aid to local governments or private corporations, Congress would grant land in lieu of cash. Most of the time the grantee did not seek to acquire any actual land but rather would sell the right to claim the land to private investors in the form of scrip. Often the land title was finalized only after the scrip was resold several times utilizing

land agent Land agent may be used in at least three different contexts. Traditionally, a land agent was a managerial employee who conducted the business affairs of a large landed estate for a member of the nobility or landed gentry, supervising the farming ...

s also called warrant brokers. These grants came in the form of railroad land grants, university land grants, and grants to veterans for war service.

Land scrip (Canada)

In 19th-century Western

, the federal government devised a system of

land grant A land grant is a gift of real estate—land or its use privileges—made by a government or other authority as an incentive, means of enabling works, or as a reward for services to an individual, especially in return for military service. Grants ...

s. Notes in the form of money scrip (valued at $160 or $240) or land scrip, valued at or , were offered to

people in exchange for their Aboriginal rights. Scrip was also issued to white settlers and members of the North-West Mounted Police. Land was claimed at a Dominion Lands Act office, often being far from where the Métis lived. The available land was located in northern Saskatchewan, Alberta, and Manitoba as opposed to the Métis' more southern homeland. Monetary scrip was also issued. Many Métis sold their scrip to land speculators at prices far below their actual worth, with estimates placing the amount of scrip sold as high as 12,560 (out of 14,849).

References

External links

* * {{Wiktionary-inline
Depression Scrip of the 1930s
Exonumia Freiwirtschaft Payment systems