Discussing alternative currencies to bypass taxes and fearful banks.
In his book The Future of Money, Lietaer points out - as the government did yesterday - that in situations like ours everything grinds to a halt for want of money. But he also explains that there is no reason why this money should take the form of sterling or be issued by the banks. Money consists only of “an agreement within a community to use something as a medium of exchange”. The medium of exchange could be anything, as long as everyone who uses it trusts that everyone else will recognise its value. During the Great Depression, businesses in the United States issued rabbit tails, seashells and wooden discs as currency, as well as all manner of papers and metal tokens. In 1971, Jaime Lerner, the mayor of Curitiba in Brazil, kick-started the economy of the city and solved two major social problems by issuing currency in the form of bus tokens. People earned them by picking and sorting litter: thus cleaning the streets and acquiring the means to commute to work. Schemes like this helped Curitiba become one of the most prosperous cities in Brazil.
The examples cited are all constructive. But, if it were adopted on a large scale, this is a disruptive and tantalizing idea. It would really make this country hard to govern. What if we, the people, disgruntled by taxes and under-served by banks, began issuing untaxable, untracable currency to pay for goods and services.
“U.S. law prevents states from issuing their own currency but allows private groups to print paper scrip, though not coins”, said Lewis Solomon, a professor of law at George Washington University, who studies local currencies.
A long history
in 1932. Like most communities in Europe at the time, Wörgl, Austria suffered from mass unemployment and a shortage of money for public works. Instead of spending the town’s meagre funds on new works, the mayor put them on deposit as a guarantee for the stamp scrip he issued. By paying workers in the new currency, he paved the streets, restored the water system and built a bridge, new houses and a ski jump. Because they would soon lose their value, Wörgl’s own schillings circulated much faster than the official money, with the result that each unit of currency generated 12 to 14 times more employment. Scores of other towns sought to copy the scheme, at which point - in 1933 - the central bank stamped it out. Wörgl’s workers were thrown out of work again.
Similar projects took off at the same time in dozens of countries. Almost all of them were closed down (just one, Switzerland’s WIR system, still exists) as the central banks panicked about losing their monopoly over the control of money. Roosevelt prohibited complementary currencies by executive decree, though they might have offered a faster, cheaper and more effective means of pulling the US out of the Depression than his New Deal.
Here is a more detailed history of Wörgl
Recent efforts, large and small:
The comments to the original article document many, many examples of alternative currencies, many created to keep wealth within a certain community.
The underlying point is that the government and the financial world is busy promising our future earnings away and as municipal services decline and taxes creep up, people are going to be looking for a way to renege on the promises made in our name.
as a side note, what a fascinating thing to collect! Some of them are very beautiful. There are people that collect odd currencies and counterfeit notes, but not a whole lot about collecting alternative currencies.
Here are some links about alternative currencies:
As Collectibles
Metafilter discussion
Wikipedia
Big gallery of alternative currencies
neat site about Madison Hours
