Community Currency And Lakewood

[Jim O'Bryan]

For the many that have followed the Lakewood Observer project from the early days, will
remember that one of the many reasons for this project was to make many of the cutting
edge ideas out of the Visionary Alignment for Lakewood possible or better understood.

Of course the plan has been attacked as the work of a secret society trying to overthrow life
in Lakewood as we know it by the Masons, the Knights of Columbus, the Kiwanis, the Acid
HEads, the whatever or whoever was needed to be demonized at the time, or needed to be
torn down so that other less dramatic ideas, that would grease the skids towards a mall
based community that city hall is pushing on with at breakneck pace.

The VAL was a group of plans that would make Lakewood self dependent over the next 50
years, based on what we know over the past 100 years, and where we saw the country,
region and world headed. They were all 100% positive community based growth and
education programs that we knew would be the building blocks to a better tomorrow. After
sketching out the ideas, and the reasons, the pluses and minuses, they were arraigned in
a pyramid from easiest to create and handle, to hardest. To make it into the VAL a project
had to be perceived as 75% positive in in influences on a community, had to be
sustainable over 25 years, could be done without the help of City Hall, as they move to slow
and because of the turnover every election not dependable for long term ideas, and had to
not depend on tax dollars or grant money. The reasons are obvious tax dollars, and grant
money evaporate in a 50 year plan, and make thing non-sustainable, making cities the
new welfare mothers of 2005-2055.

Many great ideas have come out of this. Some have done well others exist but with lack
of cohesion in the group for one reason or another make them tougher to maintain. One
thing we had early on was a dependable way to vet people heading programs, this has
somewhat moved away, but we still have a 80% solid method of letting the VAL know if
a person, group or idea is positive, and sustainable.

At the top of the pyramid was "Community Currency" an ideal project that takes a great
deal of effort and management, but can reap huge rewards for a community. We had
thought it had never been tried in Lakewood. Then this turned up for sale this week on the net.



Lakewood Community Currency from 1929! If anyone has information on this please drop
me a line or add to this thread.

It is still a great idea for the city, but in a mall based community, it would be hard to bring
this and other green sustainable ideas in. But who knows, maybe the "Grinders" that were
designed for Lakewood, based on the currency of Toronto, and Ithaca will see the light of
day. Had we committed to it in 2005, when it first came up, everyone holding "Grinders"
would have had their wealth increase 500%. An interesting thought when dreaming of
what might have had a positive impact on Lakewood.

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[Ryan Salo]

http://en.wikipedia.org/wiki/National_Bank_Note

From 1863 to 1935, National Bank Notes were issued by banks throughout the country and in U.S. territories. Banks with a federal charter would deposit bonds in the U.S. Treasury. The banks then could print banknotes worth up to 90% of the value of the bonds. The federal government would back the value of the notes - the issuance of which created a demand for the government bonds needed to back them.
The program was a form of monetization of the Federal debt. Bonds eligible as collateral for posting to the Treasury were said to have the "circulation privilege" and the interest they bore provided seigniorage to the National Banks.

Pretty neat information. I saw somewhere online that it is estimated that around 2 dozen of the Lakewood one's exist, not sure if it is true but it would be great to see one.

[Peter Grossetti]

This concept seems to be working well back in my Hometown of Origin (Lakewood is my beloved Adopted Hometown):

http://www.berkshares.org/

[Jim O'Bryan]

This concept seems to be working well back in my Hometown of Origin (Lakewood is my beloved Adopted Hometown):

http://www.berkshares.org/

Peter

Nice link.

It is a wonderful system when placed into action. A true brand builder and community builder.

Toronto has their "Hours" and Itacha has "Protozoa."

Ken brought Tim Inkpen in twice to discuss it in a series of conversation.

http://www.docstoc.com/docs/27138348/Slide-1---Lakewood-Public-Library-_Lakewood_-Ohio_

But much like Cafe University, those
at the helm seemed like it was just too much work.

FWIW


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[Betsy Voinovich]

Hey Peter or Jim,

Can one of you give a simple explanation of what community currency is and how it works?

I think I thought it had something to do with trading goods and services but I guess that leaves out the "currency" angle.

Thanks.

Betsy Voinovich

[Peter Grossetti]

Betsy - here is an example from the BerkShares website:

One day, you decide to go out for a nice dinner. You go to the bank to purchase BerkShares to spend at a local restaurant. You go in with 95 federal dollars and exchange them for 100 BerkShares. You go to dinner, and the total cost comes to $100. The restaurant accepts BerkShares in full, so you pay entirely in BerkShares. Therefore, you've spent 95 federal dollars and received a $100 meal - a five percent discount for you. The owner of the restaurant now has 100 BerkShares. They decide that they need to deposit them for federal dollars and return them to the bank. When they bring them to the bank, the banker deposits the 100 BerkShares you spent on dinner and gives the restaurant $95 federal dollars, the same 95 dollars that you had originally exchanged for BerkShares. The end result? You receive a five percent discount because of the initial exchange, but the same $95 you originally traded for BerkShares all goes to the business where you spent those BerkShares.

[Jim O'Bryan]

Hey Peter or Jim,

Can one of you give a simple explanation of what community currency is and how it works?

I think I thought it had something to do with trading goods and services but I guess that leaves out the "currency" angle.

Thanks.

Betsy Voinovich

Betsy

It is just a much better way, for communities to reinvest in themselves and local businesses. While much harder to start, and maintain, it offers benefits that are much greater too.

If a community, believes in buy local, then Community Currency is the single best manifestation of that belief.

A presentation by Thomas Greco http://www.reinventingmoney.com/documents/CommunityExch-generalOpt.pps

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