| The metallic dividend check system was probably
introduced in the mid 1850's with checks being issued equal to the value
spent in the store. These checks were saved by the members till divi-day,
usually half yearly when they could be redeemed at the declared dividend.
Example : Dividend declared at 2/- in the pound and £10 worth of dividend checks tendered would result in £1 cash payment.  All societies had some form of paying a dividend and various paper systems existed. The metallic check system was very popular until it started to be abused. Affluent members bought up poorer members' checks before divi-day. Members withheld their checks if the declared dividend was low and forgeries of high value checks made a hole in the profit of some societies. Another system had to be found which was more reliable and the most popular was a triple paper receipt system known as 'The Climax Check System'. On each purchase the members share number would plus the amount spent was recorded on a sheet of small numbered receipts. The member was handed a copy, the other two copies were retained by the society. Most societies changed to this system and by 1938 only 27 societies still used metal checks. |
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| Extracted from Catalogue of Co-op Tokens by D.R.Rains. First Edition July 1997 published by Coins of Beeston P.O.Box 19, Beeston, Notts, NG9 2NE, England |