Wikipedia has a page dedicated to leper colony money.

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2021-05-19 05:01:34

Leper colony money was special money (scrip or vouchers) which circulated only in leper colonies (sanatoriums for people with leprosy) due to the fear that money could carry leprosy and infect other people. However, leprosy is not easily transmitted by casual contact or objects; actual transmission only happens through long-term, constant, intimate contact with leprosy sufferers and not through contact with everyday objects used by sufferers.

The original reason for leper colony money was the prevention of leprosy in healthy persons. In 1938, Dr. Gordon Alexander Ryrie in Malaysia proved that the paper money was not contaminated with leprosy bacteria, and all the leper colony banknotes were burned in that country.[1][2]

The oldest special money known was made in 1901 for use in three leper colonies of Colombia, called Agua de Dios, Cano de Loro, and Contratación. Five denominations of coins were issued: 2.5 centavos, 5 centavos, 10 centavos, 20 centavos, and 50 centavos. "República de Colombia 1901" was engraved.[3] These coins were issued after the first leprosy congress in Berlin in 1897.

Between 1919 and 1952, special coins were used in a Panama Canal Zone leper colony called Palo Seco Colony. One cent, 5 cents, 10 cents, 25 cents, 50 cents, and one dollar coins were made in the United States, with one hole in the coins.[4]