I found a more detailed explanation [1]: > 32,000 schillings were printed (in denominations of 5 and 10 sch.), but only 12,000 schillings were issued by the pa

I found a more detailed explanation [1]: > 32,000 schillings were printed (in denominations of 5 and 10 sch.), but only 12,000 schillings were issued by the parish by paying its workers. > The local currency was redeemable, on demand, for official currency, but there was a 2% fee on such redemption. > For each schilling of local currency issued, one schilling of official currency was deposited (at interest) in a bank account to cover demands for redemption. > The depreciation (demurrage) rate was 1% per month. This was called the ‘Relieftax.’ > In order for a note to maintain its full face value, it was necessary to affix a stamp at the end of each month. these stamps could be purchased at the parish office. > The notes expired at the end of the year, but could be exchange, free of charge, for new ones, so long as all the necessary stamps had been affixed. … > Another major ‘gain,’ which von Muralt mentions in passing, is the windfall profit associated with the substantial amount of local currency which was never presented for redemption. He says, ‘However, of the 12,000 schillings worth of relief money issued, only about two-thirds is in circulation. The remainder has disappeared, having been annexed by souvenir hunters and collectors. That such substantial amounts of depreciating money should vanish in this way, contradicts the theoretical intention which aims at accelerating the circulation and not at hoarding. For the parish, however, the disappearance of notes is not unwelcome, since this represents for it a net gain.’ If the stated estimate is correct, this gain would amount to about 4,000 schillings. So this is essentially about paying workers with a bond instead of with cash. It’s not something the workers would normally want to accept, but it’s better than nothing. (Presumably a worker who wanted to save would exchange their money for official currency?) Although the circumstances are different and worse, it seems similar to how some local governments in Argentina were forced to pay their workers in script because they didn’t have the cash. [2] [1] https://reinventingmoney.com/greco-comment_on_worgl/ https://reinventingmoney.com/greco-comment_on_worgl/ [2] https://blog.sbensu.com/posts/pseudo-currencies/ https://blog.sbensu.com/posts/pseudo-currencies/