The Key West citizen. [volume] (Key West, Fla.) 1879-current, 1933-03-09
NEARLY 400 ORGANIZATIONS
AND GROUPS FOUND TO BE
USING PLAN FOR TRADING
COMMODITIES AND SERVICE

Out of stringent credit condi-
lions arising from the present
business situation has come a
movement in many communities
to exchange commodities by
means of barter and through the
use of scrip, according to infor-
nation collected by the Bureau of
Foreign and Domestic Commerce
and made available Feb. % by
the Department of Commerce.
There are now approximately
800 barter organizations and no
less than 100 unemployed groups,
trade bodies and municipalities
using scrip in some form, accord
ing to data collected by the
Bureau. Not only have many
small communities established ex-
changes but several large cities in
Guiding San Francisco, Los An
geles, 0dgen, Salt Lake City,
Oklahoma City, and Seattle have
establishments where bartering of
farm produce, miscellaneous goods
and professional services, etc., is
conducted.
Self-Retiring Plan
The scrip certificates are either
in the form of municipal issues,
issues for unemployment barter
exchange, or scrip of the self
liquidating type, it was stated at
the Bureau. The form of liquida-
ton of the self-retiring "cur-
rency" in most common use APP
pears to be the requirement that
each person who handles the scrip
attach a special stamp, varying
from / to A cents at each trans
action for each 81 of value, the
stamps being purchased from the
city, chamber of commerce, mer-
chants associations, or whatever
group is sponsoring the issue.
One of the developments of the
movement toward the use of scrip
and barter, it was pointed out, is
the recent recommendation made
to the President of the United
States by a committee of leading
economists and relief workers that
he name a special committee to
examine into the merits of the
various barter exchanges and COM
missaries, some of which are being
operated in conjunction with a
scrip plan.
Chief Use IL Locally
The following additional infor-
nation on the extent of the pres
ent use of scrip and barter is
taken from information assembled
by Hector Lazo, Assistant Chief,
Marketing Service Division of the
Bureau, on the basis of reports
received at the Bureau:
The present forms of scrip in
various communities throughout
the country, have been designed
by the sponsors of the scrip as a
supplement of the local supply of
legal currency and thus far its
use has been confined to definite
localities, and even to individual
organizations within localities.
A typical plan for the self
liquidating type of scrip calls for
scrip issued in one dollar denimi-
nations, with space on the GER
tificate for 36 Scent, specially
printed stamps. This scrip has
dollar purchasing power and re-
quires a Scent stamp for each
transaction until full redemption.
Objections Discussed
The major objections which are
reported on this type of scrip are
that It places a Scent "sales tax"
on the user and il a time limit is
set on its use heavy tax is in
Cured by the banks or merchants
holding the scrip on the day of
affixing stamp. 1t is also objected
to on the basis that "cheap''
money tends to drive out good
money.
IL is reported that the most
successful use of scrip has been
by self-help organizations which