Community currencies have been around in one form or another for the last two hundred years. In the past, they have often gained popularity during times of economic stress. During the 1930's, in the US, thousands of communities created their own scrip in order to build local trading networks connecting people to the goods and services they needed. These scrips were powerful forces for good in those dark economic times when money was almost unobtainable for the average person.

For a brief history of alternative currencies from ancient Egypt through the 20th Century, read Bernard Lietaer's "Community Currencies: A New Tool for the 21st Century" at Transaction.Net.

For a more recent account, we suggest you read, A Recent History of Local Currencies, by Susan Witt at http://earthskyexchange.org/history.htm.

Local Currency Systems

Scrip, hours, LETS, or Time Dollars - these are just some examples of the many local currency systems used around the world to facilitate the exchange of goods and services in communities. The recent popularity and expansion of local currency systems reflects a growing grassroots desire to create a more sustainable and humane world.

Here are links to other local currency systems:

The LETS System (Local Exchange Trading System): The LETS system is a mutual credit currency that makes electronic currency available as it is needed, in the form of ATM cards. There are over 2500 LET's systems around the world, primarily in Europe and Canada.

Ithaca Hours: Considered the most successful local currency in the US, Ithaca Hours is based on a printed currency.

Salt Spring Dollars: Located in the Canadian Gulf Islands, Salt Spring Island has their own printed currency that is 100% exchangeable with Canadian Dollars.

Japanese Complementary Currencies (pdf file): Japan has developed over 600 operational complementary currencies in an attempt to address their socio-economic problems stemming from a 14-year recession. For example, Tsutomo Hotta, Japan's "Mr. Moral Authority", developed "Fureai Kippu", a complementary currency used to care for the elderly. Older people receive credits for time, which they can use to receive care from local citizens. The credits are used to pay for things Japan's national insurance does not cover. The Fureai Kippu system helps communities create relationships based on taking time to care for elderly citizens. When surveyed, older citizens said they actually prefer receiving care from local, untrained people rather than from qualified health care workers.

The WIR Bank in Switzerland: The WIR Bank started in the depression in 1934 by Swiss businessmen as a form of mutual credit so they could do business with one another, interest-free. It has continued since that time, and over one fourth of all Swiss business is conducted through the WIR bank. Its use tends to increase when the conventional economy is not doing as well (with high unemployment and recession), and diminishes when the traditional economy is booming. Thus, it acts as a stabilizing force and is one of the factors that make the Swiss economy so stable.

More Resources

Alliance of Complementary Currencies Enabling Sustainable Societies (ACCESS)
http://www.accessfoundation.org

Reinventing Money/ Tom Greco
http://www.reinventingmoney.com/index.php

Schumacher Society
http://www.schumachersociety.org

Transaction Net
http://www.transaction.net/money/community

Time Dollar Institute/ Edgar Cahn
http://www.timedollar.org/

Articles

Yes! Journal of Positive Futures Interview with Bernard Lietaer

Community Currencies: A New Tool for the 21st Century by Bernard Lietaer

Books

Money: Understanding and Creating Alternatives to Legal Tender, Thomas H. Greco, Jr. 2001

Economia: New Economic Systems To Empower People And Support The Living World, Geoff Davies 2004

The Growth Illu$Ion: How Economic Growth Has Enriched The Few, Impoverished The Many And Endangered The Planet, Richard Douthwaite 1999

No More Throw-Away People: The Co-Production Imperative, Edgar S. Cahn, 2004