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 redemptions. 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 "Relief tax." 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.
The local currency was redeemable, on demand, for official currency, but there was a 2% fee on such redemptions.
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 "Relief tax."
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.
I stand corrected, having always thought that the Wörgl currency had not been backed by Schilling reserves.
But according to Greco it's by no means clear how much of the success was due to the Gesellian demurrage and how much was due to the fiscal multiplier of the public spending by the Wörgl parish. "Any economic unit can emit money. The serious problem is to get it accepted" Hyman Minsky
