Editor’s note: As a feasibility study on local currency gets underway in Ann Arbor, local history columnist Laura Bien takes a look at how local currencies were used in the past. Bien’s new book on local history, “Tales from the Ypsilanti Archives (MI): Tripe-Mongers, Parker’s Hair Balsam, The Underwear Club & More (American Chronicles)” can be ordered through Amazon.
Local currencies are nothing new to either Ypsilanti or Ann Arbor. In addition to 19th-century municipal banks, both cities created local currencies about 80 years ago. They weren’t created to boost local spending or civic pride. Ypsilanti created her local currency, called scrip, in the fall of 1931 because the city had no other money to pay municipal employees.
The currency included paper pennies.
“It was really just an IOU,” recalled Paul Ungrodt, in an April 15, 1975 Ypsilanti Press article, one of a Great Depression retrospective series. “[T]here was no money; hardly anyone could afford to pay taxes, so we made do with the scrip.” In the summer of 1929, Ungrodt was proud to have secured the prestigious job of Ypsilanti Chamber of Commerce secretary. A few months later, the stock market crashed.