FM on Money (4) Banks on Strike

Felix Martin tells the story of a strike by the bank officials union that shut down Irish banks for more than six months.

Business carried on without too much disruption, while the banks were closed. Most bigger payments were made by cheques, although it was impossible to clear them at a bank. It seems that the owners of pubs and shops knew the people whose credit could be trusted. Businesses knew which business, they trusted, and accepted their cheques. Businesses would buy cash from large retailers, to make up their payrolls.

When the banks finally opened, it took them three months to clear all the cheques.

While they Irish banks were closed, the Irish made their own money.