Townsend Test Check, Brewster, WA 1937

Description
This one dollar check from the First National Bank of Brewster, Washington, was paid to the order of “Prosperity” by Dorwin D. Holland, treasurer of Brewster’s Townsend Test Fund, on January 25, 1937. David Silva Sampson was chosen by Brewster’s Townsend Club to spend 200 dollars in checks to test Townsend’s Pension Plan. The check was spent like a dollar note; each merchant would pay a two cent tax to go toward the pension’s kitty. Each time the note was spent, the note was signed on the back by the seller. This note passed through twelve hands before stopping with Nettie Whitinger on February 8, 1937. While Townsend’s plan was never adopted, other tests were funded in Chelan, Washington, and Bergenfield, New Jersey. The tests were not favorable toward Townsend’s plan, as local news reports blamed souvenir seekers for taking the checks out of circulation, ending that note’s chance to be used and taxed.
The United States was in the middle of the Great Depression in the 1930s and many people saw a need for old-age pension plans to help the working elderly retire comfortably, which would then open up new jobs for younger workers. Francis Townsend, a Californian physician, proposed a plan that gave 200 dollars a month to every citizen sixty years and older, believing that would stimulate the economy and jolt America out of the Depression. Under the Townsend Plan, the pensioner must be retired and have a crime-free past in order to receive the money, which must be spent locally during the month it was issued. The pension would be funded by a 2% tax paid by the seller in transactions involving the pension money. While the plan could never fund its promised output, well-organized seniors exerted mounting political pressure for some sort of economic security, prompting President Franklin D. Roosevelt to urge the passing of the Social Security Act in 1935.
Object Name
paper money
date made
ca 1930
Physical Description
paper (overall material)
Measurements
overall: 71 mm x 172 mm; 2 25/32 in x 6 25/32 in
place made
United States: Kansas, Fredonia
ID Number
1979.1263.00002
accession number
1979.1263
catalog number
1979.1263.00002
See more items in
Armed Forces History: National Numismatic Collection
American Enterprise
Coins, Currency and Medals
Exhibition
American Enterprise
Exhibition Location
National Museum of American History
Data Source
National Museum of American History, Kenneth E. Behring Center

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