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CANAL SCRIP
We are informed that funds have been placed in the Hagers-town Bank, for the payment of the Scrip issued by the Chesapeake and Ohio Canal Company, with interest. Payment will be made, on demand.
In 1834 the monetary policies of the Jackson administration, had resulted in significant retrenchment by banks and a subsequent national recession. The canal company found that it could not sell the 1834 construction bonds backed by Maryland without a substantial loss and decided to revert to the use of scrip until the situation improved. Local storekeepers were expected to treat the scrip as regular money, which they would convert to cash, with interest, when the company once again had sufficient funds in its accounts to make the conversion. This advertisement indicates an improvement in the company’s cash flow situation, making it possible for those holding canal scrip to convert it into real cash.