Reading Room Document

Views on the legality, in light of 18 U.S.C. 336, of the private issuance of penny scrip, redeemable only in merchandise and only at stores under single ownership or franchise.

The document is a letter to the General Counsel of the United States Treasury Department, discussing the legality of private issuance of penny scrip redeemable only in merchandise. The conclusion reached is that such issuance would not violate 18 U.S.C. 336, based on the interpretation of the statute and the legislative history. The letter also presents a caution about potential exploitation of scrip issuance for profit and recommends limiting the scrip redemption period to avoid potential problems. The questions presented for review include the legality of the private issuance of penny scrip and the potential for exploitation of scrip issuance for profit.

August 5, 1974