Chicago Clearing House Certificates with a little history

i just picked these 2 depression scrips up. they are both from 1933. they were printed by the american bank note company:thumb:

1933 Chicago Clearing House Certificate $1 Depression Scrip
Series of March 8, 1933. No. TA-3974




1933 Chicago Clearing House Certificate $20 Depression Scrip
Series of March 8, 1933. No. E003802





Exchanging Checks in Chicago – A Brief History

The concept of a clearing house for banks to exchange drafts and credits dates back to 18th Century London where bank messengers decided among themselves to meet at a local pub to exchange their charges instead of running rounds. Although the method of exchange would end, the logic of central exchange remained. In Chicago, the need for a central exchange became evident during the 1860s. Chicago was emerging as a major financial center. Raw materials and agricultural products moved from west to east through Chicago, while finished goods and supplies went east to west. As the city prospered, so did the banks. Their interactions grew in complexity, making it difficult to settle their accounts with each other using messengers who delivered bundles of checks to the various banks.

The Chicago Clearing House was established in 1865 to facilitate the exchange of drafts and credits among these banks. It provided a central location where messengers could participate in a general exchange with all member institutions at one time. Member banks used clearing certificates obtained from the Clearing House Association (instead of gold) and backed these certificates with funds held there. This practice eliminated the hazard of transporting gold through the streets of the city.

The Chicago Clearing House also developed as a trade association to lend support to weaker banks and protect depositors' funds during crises. Long before the U.S. government became a regulator of financial institutions, the Clearing House Association served that purpose.

The Chicago Clearing House Check Exchange is now Check Services, Central Region of The Clearing House. It continues as the principal means of clearing checks in Chicago, and is an active proponent and processor of electronic payments. The Midwest ACH affiliate of CCHA is now part of the Electronic Payments Network (EPN). Bank forum and crisis management activities continue within The Clearing House Association.

****INFORMATION FROM THE CLEARINGHOUSE.ORG****

 

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Hummm...interesting Urban...

I really like that $20!! :thumb: :thumb:

Regards,

RickieB

 

Those are neat urban, nice notes!

 

Depression Scrip is an area that does not get enough attention considering the scarcity of many notes. It is an area that has great potential.

Here is a piece from Ladysmith Wisconsin that was unknown until it appeared on Ebay.

 

cool notes urbanm lettow.

I like the history around the script, but admit, i never really had any interest collecting them. I think for me it is similar to the 'fantasy' coin category. The script doesnt have a face value, and i think that stops alot of folks from looking at that area of numismatics.

 

I am not sure what you mean by "script doesnt have a face value". I would compare scrip (without the final "t") to tokens, not fantasy coins. Depression Scrip was used in commerce and had a recognized value at the time it was used. I think it has more to do with the fact that the circulation was local, there is no uniformity in the notes (like Nationals and other US currency) and most pieces are fairly scarce so completing a collection (unless the collection is defined by location or some other limiting factor) is nearly impossible.

They are fun to hunt for. You never know where you will find them. I found some scarce Wisconsin pieces at a rummage sale. And they are usually inexpensive. Most notes can be had in the $20.00-40.00 range.

 

I will agree with that My camparison to fantasy coins was a bit off the mark. But even though the scrip had a recognized value at the time, it does not still carry a value. A US note from 200 years ago is still legal tender for face value. Not so with the scrip. Im not saying they are not collectible, im just saying it might account for why the area of numismatics does not get the attention other areas do.

 

If one collects simply for an implied or perception of current value, you are correct. However, many people, myself included collect for a historical value, and at times that may adds a monetary value. Many years ago I began to collect currency and coins from the Nazi Concentration Camps. At that time there was no internet, so my collecting at times involved international correspondence. At the time my goal was to preserve tangible historical items related to that horror. Now, these items are valuable, and worth much more than what I paid for them, or their face value. When I had the items certified, I was advised that there are only 14 of one of my coins in the entire world. So viewing collecting from the historical perspective adds an entirely different perspective, because in that regard, collectors are historians preserving the past, which would be lost if it was only seen for monetary value.