History of Money, 1930 –– 1933

1930

The Wara

In Schwanenkirchen, Bavaria the owner of a small bankrupt coal mine started to pay his workers in coal instead of Reichsmark. He issued a local script which he called the "Wara' which was redeemable in coal. The bill was only valid if a stamp for the current month was applied to the back of the note. This demurrage charge prevented hoarding and workers paid for their food and local services with the Wara. The use of this script was so successful that by 1931 the so-called Freiwirtschaff (free economy) movement had spread through all of Germany. It involved more than 2,000 corporations and a variety of commodities backed the Wara. In November 1931 the German Central bank prohibited the use of the Wara.

1931

The U.S. and France hoard gold

The US and France together hold 75% of the world's stock of gold.

Japan abandons the gold standard.

1932 — 1941

Japan starts to build

Japan once again has strong economic growth.

1932 - 1933

The Worgl experiment is a success, so it is crushed

Worgl a small town in the Austrian Alps faced with massive unemployment during the depression issued "Certified Compensation Bills". One year after the launch of Worgl "Money" roads were repaired, the Mayors office complex was restored, The bills were used in the stores alongside the official currency and prices remained the same as before. Because of the design of the currency taxes were being paid in advance. In June of 1933 170 Mayors met in Vienna to discuss the Worgl "Money". Everyone that attended the meeting were of the opinion that they should introduce this currency in their towns. After that the Austrian National Bank found scientist that proved the attempt to use this new money had to be forbidden. Worgl had broken article 122 of the bylaws of the Austrian National Bank and the area administration issued a Prohibition Order against the use of Worgl "Money". It became a criminal offense to issue "emergency currency".

With elimination of "Worgl Money" the town went back to 30% unemployment by the following year.

Are you beginning to see a pattern here?

In the US Irving Fisher analyzed the Worgl case and published various articles about its success. More than 400 cities and thousands of communities all over the US started to issue a form of emergency currency many of which were stamp script. There was a movement to issue a stamp script emergency currency nationwide. Senator Bankhead (Alabama) presented a bill to the Senate on February 18, 1933 and Representative Petenhill (Indiana) presented a bill to the House of Representatives on February 22, 1933.

Irving Fisher approached the Undersecretary of the Treasury, Dean Acheson, to obtain support from the Executive branch for emergency script. Acheson asked the opinion of one of his Harvard professors, who advised him that the system would work but that it would imply strongly decentralized decision making, which he should check out with the President. President Roosevelt prohibited any use of "emergency currency".

1935

Hitler prints his own money, Germany prospers

Hitler issues debt-free and interest-free money based on human labor instead of gold. That would propel Germany from depression to wold power in five years.

1987

Interest and Inflation-Free Money

Margrit Kennedy publishes "Interest and Inflation-Free Money, Creating an Exchange Medium that works for Everybody and Protects the Earth" [1][2]. In the book she references the success of the Worgl experiment along with other successful Interest free money experiments.

Further Information on Money and Life in the 1930s

The Currency Wars
Anna Tirocchi's Investments

Brian Murphy Fisher Investments
War and the Private Investor
American Culture in the 1930s

[1] en.wikipedia.org/wiki/Margrit_Kennedy

[2]www.margritkennedy.de

< 1890  |  1995 >

Intro  |  9000BC-405BC  |  390BC-337AD  |  806-1275  |  1504-1681  |  1664-1762  |  1764-1776  |  1780-1834  |  1862-1890  |  1930-1933  |  1995-2000