The Vermilion Scrip Experiment

experiments with the scips was a success. However, in Vermilion, it was already tried and it failed.

In 1933, Vermilion issued scrip in $2 and $5 bills, amounting to $1,500 to $2,100 in the first issue of the scrips. It was claimed that it would increase business in the town by at least $65,000.

A resident could go into a store with a two-dollar scrip and make a purchase. The merchant was obliged to give change in Canadian currency. If the merchant owed taxes, he could pay them with scrip.

For a time the scrip circulated freely but as it came back into circulation it began to back up among business people and the town was eventually called upon to take the accumulation.

The problem was that if the merchant ceased being indebted to the municipality, he could not pass the scrip and found himself accumulating it. This forced the town to redeem it. Private individuals dealt with it as well and even municipal employees were paid wages in scrip for a time.

As it turned out, there was no increase in business because of the scrip and no more demand for goods and services above the ordinary demand. As well, the scrip was not accepted by creditors or banks outside the town, so it was only confined to within Vermilion.

Within four months, all scrip was withdrawn and the town resumed business on a cash basis.