Topic: Community Self Government
Letter to the Editor on Local Currency
A "stimulus plan" that might be suitable for your community!
by Jake Towne, the Champion of the Constitution
(libertarian)
Monday, May 4, 2009

Below is an example "Letter to the Editor" that I sent to a few local newspapers a few weeks ago and was not published. A more fleshed-out version was recently posted at Campaign for Liberty entitled "Local Currency - A Real Stimulus Plan" and is currently being debated.
 
I plan to contact the local chambers of commerce and if that fails visit local businesses and see if any are interested or think it is a good idea as there are certainly drawbacks - the idea may not be deemed beneficial for my area, but it may be worthwhile to debate.
 
What are your thoughts on local currencies? My opinion is that the plan is both beneficial and workable if the community believes it to be of value, so I am more interested in the negative aspects.  For one, I am not that big on fiat currencies.
 
Thanks for reading, if you would like to leave any comments below, please do, otherwise I can be reached by email.
 
Dear Sir or Madam,
 
I would like to suggest an idea to the community that could stimulate local businesses in the area. The idea is to create a local currency. For the consumer, this concept is similar to a general coupon that could be used at local businesses. Here is how it works:
 
1. Consumers exchange federal dollars at a discount. For example, say $95 are exchanged for 100 shares. The currency itself is printed on high-quality security paper, similar to a check and distributed by cooperating local banks. The federal dollars are physically held on deposit to honor 100% of all possible redemptions.
2. These shares can then be used at local shops and businesses that have decided to accept the shares at face value as if they were federal dollars. So, the consumer receives a 5% discount.
3. The vendor may then redeem the shares at the local bank or, better yet, spend the shares a second time to purchase goods or services at another local business.
The local currency is not meant to replace the federal dollar, but instead to stimulate local trade. Consumers will tend to utilize the shares locally to realize the discount, and local businesses receive business that may otherwise have gone outside the community in exchange for a discount. Also, both businesses and consumers will tend to spend the shares first, which will increase the local monetary velocity – in other words, more local trade will be transacted at the expense of less trade outside of the community. Due to accounting difficulties, typically large corporations would not participate, so this plan would likely also favor local small business owners.
 
One area in the US that is currently experiencing success with this model is BerkShares of western Massachusetts. The Lehigh Valley had its own local currency, the Lehigh Valley Hours, in the 1990s, but this currency failed due to lack of interest and no federal dollar backing. The expenses of printing the currency is quite low, and a non-profit organization would be created to handle distribution, website, and legal issues. However, local community interest in this idea must first exist before moving forward. I am willing to write a longer article in more detail if desired, and to help present, organize and work on this idea at no cost. I strongly believe this stimulus plan would assist our community.
 
Regards,
Jake Towne
Nazareth, PA
 

[Reach the Author Here!]      www.CampaignForLiberty.com         www.EndTheFED.us

MAYDAY! Jake Towne for US Congress, Pennsylvania 15th District (PART 1/3)

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We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America.
 
As always, unlike the NFL, the author grants full permission to allow any accounts of, rebroadcasts, retransmissions, repostings in part or full of this article to your blog or anywhere else in order to promote the Restoration of our Republic.
 
Veritas numquam perit. Veritas odit moras. Veritas vincit. Truth never perishes. Truth hates delay. Truth conquers.
 
Tu ne cede malis sed contra audentior ito. Do not give in to evil but proceed ever more boldly against it.

©2009 Jake Towne, the Champion of the Constitution, all rights reserved. You must have written permission from the author in order to republish this work.
Published: Monday, May 4, 2009
Last modified: Monday, May 4, 2009

The views expressed in this article are those of Jake Towne, the Champion of the Constitution only and do not represent the views of Nolan Chart, LLC or its affiliates. Jake Towne, the Champion of the Constitution is solely responsible for the contents of this article and is not an employee or otherwise affiliated with Nolan Chart, LLC in his/her role as a columnist.

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Reader Comments:

Posted By: BallstotheWall
Date: 2009-05-05 10:27:06

Hasn't that been tried and labeled illegal?

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Posted By: Jake, the Champion of the Constitution
Date: 2009-05-05 10:35:20

Dear BallstotheWall -

Nope, try this link I wrote here, there's a link to a BJ Lawson video and BerkShares below.  Different states may have different laws though

http://www.campaignforliberty.com/article.php?view=65

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Posted By: creator
Date: 2009-05-08 07:42:20

Hey Jake!

I just came across this fine article!

Local currencies are the bomb! We the people definitely need to take "money" out of the hands of the moneychangers. It all goes back to fundamental questions. One of the toughest for most people to answer is, simply, "What is money?" Everyone thinks they know, because they use it every day... but if you pin down the average American and force them to try to give you a clear definition, there is no real answer.

This is something I also hope to write more about, and your article is encouraging in that regard. Please keep on agitating on this point! Hey, how about a conversation about this sometime? :)

Best regards,

-creator

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Posted By: Jake, the Champion of the Constitution
Date: 2009-05-08 07:54:46

Dann -

The discussion at C4L was very helpful.  I am now conversing with the leader of AOCS into a silver-backed commodity barter currency.  What's there so far is wonderful

I'll contact you with my private info

Jake

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Posted By: creator
Date: 2009-05-08 08:14:29

Please indulge me in one more comment:

You say "The local currency is not meant to replace the federal dollar, but instead to stimulate local trade." That may be true of some local currencies or in some thinking. IMHO, however, that is EXACTLY what we ought to mean to do - namely to provide an alternative to the "dollar" which is really no longer a DOLLAR at all.

What we desperately need is a currency that is NOT subject to the fed printing presses... one that provides us with a convenient means of exchange and a reliable store of value. It need not be "printed on paper" - the paper itself is NOT the store of value - the value has always been and remains in the community. There is, for example, a local currency in Washington state that uses a computer network to track the exchanges.

-creator

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Posted By: Jake, the Champion of the Constitution
Date: 2009-05-08 08:26:00

I agree 100% with building an alternative to the dollar - which is what RP has been trying to do so valiantly for 30 years.  Its even a key reason why I am running for Congress.

However, governments have set up (unconstitutional) laws to prevent this very thing from happening.  They are not stupid - think of all the taxes, tariffs, statistics, - EVERYTHING- its based on using the dollar as the unit of account.. 

Hence my interest in AOCS. which is based on barter.   website here.  Look forward to speaking with you finally in person over the phone!! From China it was a taddifficult!

 http://opencurrency.com/

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