It's a Wonderful Life

Last week It’s a Wonderful Life was broadcast on Lionheart Radio, a radio adaptation of the classic film of the same name¹. The show was directed by my daughter as her swan song at senior school, and over the last few months, I’ve become deeply familiar with the script.

Famously, the script includes a bank run scene based on the U.S. financial panic of October 1932. George Bailey and his new wife, Mary, give up their honeymoon savings to ensure the townsfolk can pay their bills and prevent the Bailey Building and Loan — what we in the UK would call a Permanent Building Society — from falling into the hands of the rapacious Mr Potter, a man determined to control Bedford Falls. The scene vividly illustrates how a Building and Loan company operates, but it could have been even more insightful had George explained how money itself works.

Today, we’re going to channel our inner Clarence, reach back in time, and show George Bailey how he could have saved Bedford Falls and still gone on his honeymoon with Mary.

Here’s how the issue is set up in Act 2, Scene 2, but this time George knows his monetary history:

In the lobby of the Building and Loan, dozens of worried shareholders were clamoring for their savings. Meanwhile, George found Uncle Billy in his office…

UNCLE BILLY: It’s a panic, George. They want to withdraw their shares.

GEORGE: Ah! They want their money.

UNCLE BILLY: But we’re in a pickle! The bank called in our loan this morning!

GEORGE: Our-our loan? The bank called in our loan?

UNCLE BILLY: Well, they’ve got a run! They need cash, so they demanded we pay off our loan… immediately! I handed over all our cash. I had to!

GEORGE: You handed over all our cash? But that means…

UNCLE BILLY: The whole town’s gone nuts, George! Now, we’re in the same pickle as the bank! Who’d have thought you couldn’t trust the American banking system to be…

(They hear the commotion outside and step into the lobby.)

GEORGE: Folks, please, let’s stay calm. Let’s work this out together.

(A phone rings. George answers it.)

GEORGE: Hello?

POTTER: George, are you okay? Have you called the police to quell that unruly crowd in your lobby?

GEORGE: The police…? Now, why would we need…

POTTER: I just want you to know that in this financial crisis, I’m here to help.

GEORGE: Help?

POTTER: Yes! I’ve just guaranteed sufficient funds to the bank. They will close down for a week’s “bank holiday,” then re-open.

GEORGE: Potter just took over the bank. I see. And they’ll re-open under “new” management, of course.

POTTER: Of course! Now, this may cost me a fortune, but I’m willing to help out your shareholders too. If they need cash, they can sell their shares to me. I’m paying fifty cents on the dollar.

GEORGE: No, they won’t, Potter. We both know you don’t have that much cash on hand. Rich men like you never do. You rely on credit just like the rest of us.

POTTER: Ha! And where’s your credit, George? You don’t have any cash, and you know it! That means bankruptcy! And your “working” people will lose everything. Am I wrong?

GEORGE: No, the banks are failing because the Federal Reserve isn’t doing its job. In twenty years, it hasn’t hired the right people or modernized. If it doesn’t change, it’ll still be making these same mistakes in a hundred years time. Britain dropped its gold standard last year, but here we are, still tied to the past. That’s what’s choking us, not my friends.

POTTER: Typical idealism, George. The gold standard is the backbone of sound money! Without it, you’d have nothing but chaos! All this talk of ‘modernizing’ is exactly the kind of reckless thinking that ruins nations. Your so-called “friends” don’t even know what’s good for them. Fifty cents on the dollar is better than nothing. Do you think they’re smart enough to see that?

GEORGE: They’re smart enough to see through you, Potter. And so am I.

POTTER: I know your charter! If you close your doors before six p.m.—you’ll never re-open.

GEORGE: You don’t miss a trick, do you, Potter! Well, here’s one you will!

(George slams the phone down.)

UNCLE BILLY: Well, George, I guess you told him!

GEORGE: Yeah, Uncle Billy, but he’s right! Our charter requires we stay open until six p.m. If we don’t, the state can take our license away!

UNCLE BILLY: Stay open until six? Without any money? It’ll take a miracle!

GEORGE: Well, C’mon. Let’s see about that crowd out there…

Into the chaos of Scene 3, but this time George doesn’t just grasp the basics of loans; he has a deeper understanding of how money works too.

GEORGE: [CUE] Okay. Okay. Hold on, now! Please! Now, now, please, everybody! Don’t panic! I know you want your money.

SHAREHOLDERS: OUTBURST—“YEAH” “WHAT ARE WE GONNA DO?”

GEORGE: Look! I just talked with Mr. Potter on the phone! He says the bank will re-open next week. Next week.

SHAREHOLDERS: OUTBURST—“NEXT WEEK?” “MY MONEY’S HERE!”

CHARLIE: We want our money, George! Where’s our money?

SHAREHOLDERS: OUTBURST—“YEAH” “WHERE IS IT?”

GEORGE: Oh, come on! C’mon, everybody! Wait! Just a minute, now! Listen here! C’mon! You’ve got it all wrong. Your money isn’t here!

SHAREHOLDERS: CROWD (AD-LIBS) “WHAT?” “HEY!”

GEORGE: Just a minute! Let me explain! Your money’s not here! It’s not in the safe! No! The money you’ve invested in this Building and Loan was put into people’s houses! It’s… in Ernie’s house! And the Grimaldi’s house! And your house… And a hundred other houses!

SHAREHOLDERS: CROWD (AD-LIBS) “WHAT?” “HEY!”

UNCLE BILLY: That’s how the Building and Loan works! If you all want your money now, what do you want us to do? Foreclose on them? Throw them out of their homes?

SHAREHOLDERS: OUTBURST–ARGUING.

CHARLIE: I don’t care! I got two hundred and forty-two dollars in shares here. Two hundred and forty-two dollars won’t break you! Close my account! I want my money… now!

SHAREHOLDERS: OUTBURST—“YEAH” “MINE TOO”

GEORGE: Okay… Okay! Sign this form and you’ll get your money in sixty days.

SHAREHOLDERS: OUTBURST—“SIXTY DAYS?”

CHARLIE: What do you mean “sixty days?!”

GEORGE: Well… that’s what you all agreed to when you bought your shares.

RANDY: (DISTANT) Ha! I got my money?

SHAREHOLDERS: CROWD (AD-LIBS) “RANDY” “WHERE?” “HOW?”

RANDY: (STEPS UP) Old Man Potter will pay you fifty cents on the dollar for your shares!

SHAREHOLDERS: OUTBURST—“YEAH?” “REALLY?”

MRS. THOMPSON: Now what do you say, George?

GEORGE: Well, now, we have to stick to the agreement.

CHARLIE: Oh yeah…? (TO CROWD) C’mon, everybody! Let’s take our shares to Potter! Half is better than nothing!

SHAREHOLDERS: OUTBURST—“YEAH!” “LET’S GO!”

GEORGE: (STRUGGLING WITH THEM) Wait! C’mon! Please! Please, folks! Don’t do this! (YELLS) Stop!

SHAREHOLDERS: CROWD HUSHES A BIT

GEORGE: Listen! If Potter gets a hold of the Building and Loan, there won’t be a decent house built in this town again! Can’t you see? He’s just taken over the bank. He’s already got the bus line, the department store… And now he’s after us! You know why? We’re cutting into his business! He wants to keep you living in his shacks and paying the rent he decides.

EDDY: But George…

GEORGE: Eddy! Last year, things were tough for you. You couldn’t always pay, right? Do you think Potter would have let you keep your house?

EDDY: Well…

GEORGE: (TO ALL) Listen, everybody! Potter is buying because you’re panicking and he’s not! To him, you’re just a bunch of… bargains! Now, we can get through this, but only if we stick together! We’ve got to believe in one another! Have faith!

SHAREHOLDERS: CROWD MULLS IT OVER

CHARLIE: (DISTANT) That’s a lot of fine talk, George, but I’ve got doctor bills to pay!

MRS. DAVIS: (DISTANT) My husband got laid off. We need our money.

EDDY: Yeah! What do we live on until the bank reopens?

SHAREHOLDERS: OUTBURST—“RIGHT!” “HOW?”

MRS. THOMPSON: (DISTANT) You can’t feed your kids on “faith!”

SHAREHOLDERS: CROWD (AD-LIBS) “THAT’S RIGHT!” “WHAT ABOUT THAT, GEORGE?!” “YEAH!”

MARY: (STEPS UP) George! George, darling!

GEORGE: (STARTLED) Hey! Mary!

MARY: How much do they need? We’ve still got some money!

GEORGE: We do…? (THINKS) Mary, wait! I have a better idea.

SHAREHOLDERS: CROWD WHISPERS–“WHAT’S HE MEAN?”

GEORGE: (TO ALL) Folks, listen. Instead of giving in to Potter or cashing out, I’ll swap your shares for Bailey Bills. They’re worth a full hundred cents on the dollar, signed by me and backed by the Building and Loan. You can use them to pay off interest or principal on your loans here. It’s our way to keep things moving until the bank reopens.

CHARLIE: How does that help us?

GEORGE: Because they’re as good as cash in Bedford Falls. Most people here have a loan to repay. Even if you don’t, you know someone who does. Take a Bailey Bill to Martini’s store. He’ll use it to pay Gower for supplies. Gower will use it to pay Ernie for a cab ride. Eventually, someone will use it to pay their loan. It keeps the money local, working for all of us.

EDDY: But how do we know this will work? What if no one takes them?

GEORGE: Eddy, think about it. You have a loan here, right? You can pay it off with these bills, and that’s good as cash. Martini will take them because he knows Gower will. Gower will take them because Ernie will. And you know Ernie has a loan too. It’s all about knowing there are people here with loans to pay and they can pay them off with these bills. 

MRS. THOMPSON: And what happens if we don’t trust it?

GEORGE: Then Potter wins. He gets your shares, your homes, and this town. But if we stick together, we can keep him out of Bedford Falls. We’ve done it before, and we can do it again. 

CHARLIE: And what about taxes, George? You can’t pay taxes with these Bailey Bills!

GEORGE: You’re right, Charlie, but think about it—taxes aren’t due until next March. By then, the bank will have reopened, and you’ll have access to your regular cash again. This is just to get us through this tough time. Can we agree on that?

EDDY: What about people outside Bedford Falls? Like that fish wholesaler from Albany? Why would he take these?

GEORGE: Good question, Eddy. The fish wholesaler has a business to run, and people aren’t buying much these days. Where else is he going to sell his fish? We’re one of his biggest customers. If he tries to sell more fish somewhere else he’s going to have to offer a mighty discount to shift it all. He’ll probably get less than if he dumped the excess in the river. And with these bills, he can keep his trucks serviced at Joe’s Garage right here in town. If he doesn’t take them, he’s going to lose out on a lot more than just fish sales.

EDDY: I guess you’ve got a point there, George.

CHARLIE: All right, George. I’ll take Bailey Bills.

EDDY: Me too.

MRS. THOMPSON: All right. Let’s do it.

SHAREHOLDERS: VOICES OF AGREEMENT—“ME TOO!” “LET’S DO IT!” George. I’ll take Bailey Bills.

GEORGE: Thank you! Thank you all! Now let’s get through this together. One bill, one handshake at a time.

By issuing Bailey Bills, George Bailey not only saves the Building and Loan but also strengthens the trust and interdependence of Bedford Falls. The town thrives by believing in itself, keeping Mr. Potter at bay.

And, by doing all this, George and Mary could finally go on their honeymoon, leaving Bedford Falls to celebrate another Christmas free from Potter’s control.

Have a very Merry Christmas, everybody!

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