TeachMeFinance.com - explain Wildcat money
Wildcat money -- A name applied to the depreciated or
worthless money formerly issued by state banks that became
insolvent; also called red dog money and yellow dog money.
The term wildcat money applied originally to the circulating
notes (money) of banks in the wilds of Wisconsin. These
banks were organized after the enactment of the general banking law of the state in 1852 and they were located in the most
obscure places, often in huts in forests. The banks were
created solely for the purpose of issuing circulating notes and
were established at inaccessible points in order to prevent the
presentation of their notes for redemption. As their surroundings
were in many instances the habitat of wildcats the banks,
were called "wildcat banks" and their notes were called "wildcat
money." Eventually the term wildcat was applied to all
unstable banks throughout the country and to the depreciated
notes of such banks.
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