As banks failed during the Great Depression, residents in many cities and towns faced a shortage of money to make transactions. Both individuals and businesses lost funds in failed banks or had their funds frozen during banking closure. While some businesses and individuals resorted to barter, this strategy naturally had its limitations. A number of cities around the country began issuing their own currencies and perhaps, at its peak in the 1930s, a total of $1 billion was in circulation. Some corporation and school boards also issued their own scrip. Some of it looked like regular government-issued money, but there were some unusual creations. Two California towns issued their money on clamshells and Hal s Tire Service in Oregon created $1 bills on old tires.
Whatever party issued the money obtained goods in exchange for this scrip and thus directly benefited from issuing new money. These benefits would last until they were forced to return real U.S. money in exchange for their privately-issued scrip.