Did you know that in the United States (1837-1866), almost anyone could issue their own paper money. How cool woudn’t that be, to have your own mug on the bills?
States, municipalities, private banks, railroad and construction companies, stores, restaurants, churches and individuals printed an estimated 8,000 different monies by 1860. If the issuer went bankrupt, closed, left town, or otherwise went out of business the note would be worthless.
You certainly would have to spread your money at different places - just like today you can’t trust even the banks.