Peavey Paper Company
The Peavey Paper Company bought a closed paper mill in Ladysmith in early 1933. By the summer the mill was operational. The company’s expansion required more money than the company could borrow given the economic conditions. In November 1933, the company proposed paying its employees partly in cash and partly in scrip.
William Peavey, the company president, met with the business leaders in Ladysmith to present the scrip plan. Employees were paid half in scrip and half in cash. The local merchants agreed to accept the scrip at the rate of 100 per cent on old accounts and 75 per cent cash/25 per cent for new purchases.
The scrip was redeemable for 6% first mortgage bonds of the company. The company made $14,500.00 in bonds available to cover the same amount of scrip. There is no record of the denominations issued. A single $.25 note is known.