The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-01-20
BY ROBERT TALLEY,
NEA Service Writer

- successful attempts to make
the unemployed self-supporting
by enabling them to barter their
labor for scrip or goods seem to
have been originated and operated
by the iobless themselves. The
biggest such attempt by city has
been abandoned.
After two-year trial, the city
Of Grand Rapids, Mich, which
until recently boosted "A job for
every man. is giving up its sys-
tenn of made" relief work on pub
lie improvements and is going
back to the old system of direct
relief to the needy.
High costs of these public i'm
proVements, approXimating 81 $780,
600 a year, explain the change
Early in the depression. the city
of Grand Rapids decided that
since the unemployed had to be
supported anyhow, it would be
better to put them to work on
municipal projects and pay them
in city scrip, redeemable in food
and goods at city welfare depart
ment stores. The wage was fixed
at 40 cents an hour.
Workers were enrolled and as
signed to projects. These included
beautifying public parks. grading
streets, rebuilding curbs and
faulty pavements, installing water
mains and sewers, painting bridges,
refurnishing public buildings, and
improving municipal golf courses.
Much of this work otherwise
would have been undertaken by
the city The system was decided
upon by the city government be-
cause it was believed that it would
give the taxpayers some return
for their relief expenditures.
A S the number on the relief
N rolls increased, however, it
was found that the cost of the
plan was mounting out of pro-
portion, and that direct relief
probably would cost much less.
Accordingly, the city commits
sion investigated the social serv-
ice department activities and
methods of reducing the $780,
000-a-year cost.
The citys policy of created re-
lief work, they found, encouraged
family heads to regard such en-
ployment as permanent job
with the city, rather than as a
temporary relief measure.
Moreover, they found that the
scrip plan was costing Grand Rap
ids more than direct relief would
cost, even with 1000 families COM
prising some $4,000 persons on
the rolls.
When the new system is worked
out, persons receiving free relief
may be called upon to perform
some work in exchange. When
cash employment is available, it
will be spread among those who
have shown willingness to work.
The municipal wage scale has
been cut to 80 cents an hour, so
as not to attract men to munich
pal projects when otherwise they
might seek outside employment.
The department has divided
Grand Rapids into twenty-six
service districts and in each a
woman visitor will maintain close
contact with families on the re-
lief rolls.
Free food will be distributed
from five commissaries in various
parts of the city.
A DIFFERENT sort of scrip
L n plan that involves created
public improvements is being en-
ployed in Hawarden, Ia, and in
several other small towns in Iowa
and Nebraska. 1t was designed by
Pref. Irving Fisher, noted Yale
economist.
The plan works like this: Needy
men are put to work on public
improvements and paid with scrip
money To spend a scrip dollar.
the holder first must attach
thereto a special Scent stamp,
purchased from the city.
Thus, by the time a scrip dollar
has changed hands thirty-six
times, the city has received S1.O8
for the stamps on its back and
can redeem it with a real Ameri-
can dollar (the extra 8 cents COW
ering the expense Of printing and
handling).
In effect, this is 3 per cent
sales tax on the consumer. But
the money goes to aid the needy.
Stores accept the scrip money.
Professor Fisher, who recently
made a trip to Hawarden to see
how the plan was working, de-
clared it to be the most interest
ing experiment I know of for
combating the depression.
IN Evanston, ILL.,, city officials
Il and the Evanston Independent
Retail Merchants Association are
cooperating in issuance of a scrip
known as "Eirma money" de-
signed to stimulate retail trade
and raise funds for the purchase
of city tax anticipation warrants.
Each "Eirma dollar is backed
by real dollar in the bank. The
2-cent city stamp affixed to it
each time a transaction is made
is paid for by the merchant He
later receives city tax anticipa-
ton warrants for this stamp
money.
In Dayton, o., hard-preSsed
city officials are considering a
scrip plan with a 2-cent stamp.
In the process of thirtV-fou