Legal Definitions - shin plaster

Shin Plaster

The term "shin plaster" is a historical, informal expression used to describe two distinct types of paper currency:

• Currency that has experienced a severe loss in value, becoming nearly worthless.
• Paper money issued in denominations less than one dollar.

Here are some examples illustrating these meanings:

• Example 1 (Depreciated Currency): During a period of extreme economic instability, a fictional country's central bank might issue new banknotes daily, but their value plummets so rapidly that a week's wages can barely buy a single meal. Citizens might sarcastically refer to these rapidly devaluing bills as "shin plasters," highlighting their negligible purchasing power and the public's loss of confidence in the currency. This illustrates the first meaning, where the currency has greatly depreciated in value, making it practically worthless.
• Example 2 (Fractional Currency): Imagine a scenario in the mid-19th century United States where there was a significant shortage of metal coins due to hoarding during the Civil War. To facilitate small transactions, the government and even some private entities began issuing small paper notes for amounts like 10 cents, 25 cents, or 50 cents. These small-denomination paper notes, used as substitutes for coins, would have been commonly called "shin plasters." This example demonstrates the second meaning, referring to paper money issued in denominations less than one dollar.
• Example 3 (Hyperinflationary Context): In a post-war economy ravaged by hyperinflation, a nation's currency might become so devalued that it takes a wheelbarrow full of banknotes to buy basic groceries. People might use the term "shin plaster" to describe these nearly valueless bills, emphasizing their extreme depreciation and the public's lack of confidence in their monetary system. This again highlights the first meaning, where currency has lost almost all its original worth.