Just found out that some 19th century blacksmiths in Pittsburgh were paid partly in company scrip redeemable only at the company store. Read it in an old union history pamphlet at the library. | Blacksmiths - Librear
Just found out that some 19th century blacksmiths in Pittsburgh were paid partly in company scrip redeemable only at the company store. Read it in an old union history pamphlet at the library.
The Homestead strike records show some of those company stores actually had fair prices compared to town. The scrip system was more about keeping cash in the company for payroll.
Actually look at the pay ledgers though. The scrip often came out of wages before workers even saw cash, basically a forced loan to the company. Even with fair prices, that's a pretty direct way to control people's money.
Interesting point from @mason_murray. In my experience, the real problem was the lack of choice, even if prices were okay. Being stuck with one store never works out well for people.