How to Create a Community

Currency
Using Silver Barters
Obverse of a 1/2-oz Silver Proof Condition Barter
Reverse of a 1/2-oz Silver Proof Condition Barter
What's a community currency?

Definition from the Wikipedia:

"In economics, a local currency, in its common usage, is a currency

not backed by a national government (and not necessarily legal
tender), and intended to trade only in a small area. These currencies
are also referred to as community currency, or complementary
currency. They encompass a wide range of forms, both physically
and financially, and often are associated with a particular economic
discourse."
Benefits of community currencies

From the Wikipedia:

The Wörgl experiment dramatically illustrates some of the common characteristics and major benefits of local currencies.

1. Local currencies tend to circulate much more rapidly than national currencies. The same amount of currency in circulation is
employed more times and results in far greater overall economic activity. It produces greater benefit per unit. The higher velocity of
money is a result of the negative interest rate which encourages people to spend the money more quickly.
2. Local currencies enable the community to more fully utilize its existing productive resources, especially unemployed labor, which
has a catalytic effect on the rest of the local economy. They are based on the premise that the community is not fully utilizing its
productive capacities, because of a lack of local purchasing power. The alternative currency is utilized to increase demand, resulting
in a greater exploitation of productive resources. So long as the local economy is functioning at less than full capacity, the
introduction of local currency need not be inflationary, even when it results in a significant increase in total money supply and total
economic activity.
3. Since local currencies are only accepted within the community, their usage encourages the purchase of locally-produced and locally-
available goods and services. Thus, for any given level of economic activity, more of the benefit accrues to the local community and
less drains out to other parts of the country or the world. For instance, construction work undertaken with local currencies employs
local labor and utilizes as far as possible local materials. The enhanced local effect becomes an incentive for the local population to
accept and utilize the scrips.
4. Some forms of complementary currency can promote fuller utilization of resources over a much wider geographic area and help
bridge the barriers imposed by distance. The Fureai kippu system in Japan issues credits in exchange for assistance to senior citizens.
Family members living far from their parents can earn credits by offering assistance to the elderly in their local community. The
credits can then be transferred to their parents and redeemed by them for local assistance. Airline frequent flyer miles are a form of
complementary currency that promotes customer-loyalty in exchange for free travel. The airlines offer most of the coupons for seats
on less heavily sold flights where some seats normally go empty, thus providing a benefit to customers at relatively low cost to the
airline.
Benefits of community currencies, cont'd

From the Wikipedia:

5. While most of these currencies are restricted to a small geographic area or a country,
through the Internet electronic forms of complementary currency can be used to stimulate
transactions on a global basis. In China, Tencent's QQ coins are a virtual form of currency that
has gained wide circulation. QQ coins can be purchased for Renimbi and used to purchase
virtual products and services such as ringtones and on-line video game time. They are also
obtainable through on-line exchange for goods and services at about twice the Renimbi price,
by which additional 'money' is being directly created. Though virtual currencies are not 'local'
in the tradition sense, they do cater to the specific needs of a particular community, a virtual
community. Once in circulation, they add to the total effective purchasing power of the on-line
population as in the case of local currencies. The Chinese government has begun to tax the
coins as they are exchanged from virtual currency to actual hard currency.
Society utilizes only a small portion of its resources and opportunities. Almost everyone has
underutilized knowledge, skills and time that can be engaged productively. Most manufacturers and
services have underutilized machinery or capacity. Complementary currencies are a creative means
to enhance this untapped social potential.
Silver barters have no geographical
boundaries
A silver barter is not tied down to any one locality, city, county, State,
region, nation or continent.

Barters can go anywhere and can be voluntarily accepted by

anyone. This means they are truly global in their scope.

However, they can also be used to create a silver-backed community

currency (silver certificates), also called local currency or
complementary currency, which will tie them down to one location,
for as long as it is desired.

This presentation will show you how to do it.

Why people would want certificates

In a word:

CONVENIENCE.

Paper takes up little room and can be denominated in any amount.

Breaking down the English language
barrier
Silver barters are designed in English, but when they are backing a
community currency, the English barrier is broken, allowing every
community of the entire world to use them.

This is because the certificates can be written in any language

desired, addressing the needs of the community.
Silver-backed currency has been done
before
On October 1, 1998, the American Liberty Currency (ALC) was
introduced to the world by an organization called NORFED (now
known as Liberty Services), consisting of silver (and gold) certificates
backed by silver (and gold) rounds.

On November 14, 2007, they ran into trouble with the law because
their rounds looked so similar to U.S. coins that people were
mistaking them for real U.S. money.

Since then they have changed the design of their rounds and are still
functioning as a business.
How the ALC model works

People purchase either rounds or certificates.

If they purchase rounds, they receive delivery immediately.
If they purchase certificates, sufficient rounds are struck to back
the number of certificates.
All certificates are redeemable on demand.
To redeem, certificates are mailed in and then rounds are mailed
back.
Rounds are stored at a warehouse which has been pre-paid to store
them (and insure them against fire and theft) for a period of 5
years.
The certificates are, then, warehouse receipts with the terms of
redemption written on them. They are negotiable and have an
expiration date.
Where the ALC rounds went wrong

The ALC rounds appeared too

similar to U.S. money. It had
"TRUST IN GOD", "USA", a
picture of the Statue of Liberty, a
"$" sign, the word "DOLLAR", a
face value and a layout that people
naturally associated with U.S.
current money.

Their certificates never ran into

trouble because, even though they
also contained the words and
images that the rounds had, they
looked nothing like Federal Reserve
Notes. You can see from the
picture at the right that their
certificates could not be mistaken
for U.S. fiat money.
Silver barters look nothing like U.S. coins

Silver barters contain no "$" sign, no "DOLLAR" word, no

"USA" (or any other nationality) and no face value. They are
simply bullion rounds.
This means that barters are totally safe from government
interference.
Where the ALC Certificates went right

Storing rounds in a warehouse and pre-paying for storage and fire and
theft insurance for a period of 5 years.
Making the certificates redeemable on demand.
Making the certificates warehouse receipts.
Putting the terms of redemption on the certificates.
Making certificates negotiable.
Stating the amount of silver that backed the certificate and that it was
redeemable.
Having an expiration date.
Where the ALC certificates went wrong

The certificates used the word "DOLLAR" 11 times.

The certificates used the "$" sign 7 times.
The certificates had face values ($1, $5, $10, $20 & $1000)
The certificates carried political baggage. The text from a $1 cert:

"The acceptance and use of this One ($1.00) Liberty Dollar Receipt is an exercise of the
bearer's First Amendment right to petition the government for a silver based currency as
mandated by the U. S. Constitution."

The certificates were not issued in a 1 to 1 ratio (1 cert for 1 round), but a 1-oz round could have 20 $1 certs
issued against it, or 2 $10 certs, or 4 $5 certs or 1 $20 cert.
Redemption could include a mix of certificates and dollars. For example, the text on the $1 certificate reads,

"IT IS HEREBY AGREED BY THE BEARER THAT THIS WAREHOUSE RECEIPT IS

FOR AN UNDIVIDED INTEREST OF ONE TWENTIETH (1/20) TROY OUNCE OF .999
FINE SILVER AND THAT REDEMPTION IS RESTRICTED TO COMBINATION WITH
OTHER LIKE WAREHOUSE RECEIPTS OR THE BALANCE MAY BE PAID IN
FEDERAL RESERVE NOTES SO THAT WHEN COMBINED EQUAL ONE TROY
OUNCE OF .999 FINE SILVER."

The expiration date was 20 years from date of issue.

An improved ALC model

Find a local warehouse that is equipped to store precious metals at decent prices and which can be pre-paid to store and insure the
metal against fire and theft for a period of 5 years.
Contract with them that 1 receipt will be issued for each silver barter (1 to 1 ratio), that the receipts are negotiable and that the silver
is redeemable by the receipt bearer on demand.
Find a local company that can print security documents (such as checks, etc.) in which anti-counterfeiting techniques can be applied
(such as special bank paper, micro-printing, silver foil-stamping, a hologram, magnetic strip, watermark, etc.)
Have them print the warehouse receipts with individual serial numbers and include all the anti-counterfeiting measures you can
afford.
Design a certificate however you want, making sure it looks nothing like government money.
Make the expiration date 5 years from date of issue (not 20 years.)
Put no face value on the certs, no reference to government money (no "USA", no "$" sign, etc.)
Keep it tied only to the silver barter that backs it - 1 barter for 1 cert.
Put the words "NEGOTIABLE" and "REDEEMABLE BY BEARER ON DEMAND" and "SILVER CERTIFICATE" and ".50
TROY OUNCE" and "1/2 TROY OUNCE" and "ONE HALF TROY OUNCE SILVER .999 FINE", etc., all over it.
Put redemption terms on it.
Put warehouse and security company contact info on it.
Strike as many barters as you want and have them delivered to the warehouse. Have the security documents company print the
receipts. Arrange for the receipts to be delivered to the warehouse. Have the warehouse log the serial numbers into their system and
then the warehouse official signs and dates them and turns them over to you. You, the creator of this local currency, will also sign
them.

You now have a silver-backed community currency that

can begin circulating!
Example #1: Greenville Barkers

The imaginary town of Greenville, Carolina is known to locals as

"dog town" because of the high number of dog owners that live there.
Tony Malone decides to issue a community currency backed by
1/2-oz silver barters which he will call "Greenville Barkers."
A search brings up that there are 3 warehouses in town that can
adequately store the silver. Tony decides to go with Lowland
Warehouse.
Tony then finds a local security company, Security Printers, which
will print the receipts. Working with Security Printers, he comes up
with the following basic design, which is later made snazzier by the
Security Printers graphic artists.
Greenville Barkers, cont'd

Tony then pays The Collector's Mint to strike a bunch of 1/2-oz barters and
has them shipped to Lowland Warehouse. He pre-pays storage and insurance
for 5 years, has Security Printers print the exact number of receipts as there
are barters, the receipts are delivered to Lowland Warehouse, signed, dated
and logged into their system, and then handed over to Tony.
Tony then starts spending them at full bartering value (1.5 times spot
rounded up to nearest dollar.)
The Barkers certificates circulate around town. People who are doubtful
call up the Lowland Warehouse and Security Printers companies and verify
that the silver is there. The Greenville Barkers become a trustworthy
community currency and circulate a lot, bringing lots of business to local
companies.
As it is more convenient to use the paper certificates than it is to carry
around the silver pieces, hardly anyone redeems them.
The few situations in which Barkers are
typically redeemed
The certificate is wearing out and may not be readable for much
longer.
A local is moving out of town and would rather have his physical
silver with him instead of a certificate that may not be accepted
outside of town.
The certificate expiration date is approaching.
More than one community currency to a
town
As anyone can make a community currency using the silver barters,
others start to get in on the fun. Soon Greenville gets the following
additional local currencies:

Greenville Roof Ruffers created by Jeff Hobbs, which also advertises

his roofing business, Roof Ruffers. These are backed by 1/4-oz barters.
Greenville Bow Wows, by Mary Walker, backed by 1-oz barters.
Che Bellas, by Bella Malone, Tony's mother, who makes a local currency
entirely printed in Italian, her native language, as there is a large Italian
population in Greenville. They circulate only among the
Italians. Backed by 5 and 2-oz barters.
A Korean language currency by Seong Myeong (& associates), which
circulates only among the Korean population of Greenville. Backed by 1,
1/2, 1/4, and 1/5-oz barters in silver and 1/5-oz barters in gold.
Converting barters into certificates

Once there is a barter-backed community currency in the locality, all the local
distributors who want certificates can bring their barters to the local warehouse and pay
the storage and insurance fees, plus an additional currency fee (which goes to the
creators of the currency) and receive their desired certificate which expires in 5 years.

If there are multiple barter-backed currencies in the area, they can pick the currency
they want their certificates to be in, or even which language they want them written in,
if multi-language currencies exist.

Options are endless and the varieties of barter-backed currencies can be limited only by
the imagination of man and the amount of warehouse space and the number of security
document companies.

For those who do not trust redeemable, silver-backed certificates,

physical silver can still be used.
This process can be repeated anywhere in
the world
Regardless of location, regardless of the written or spoken language.

All you need is:

A warehouse that can be pre-paid to store and insure the silver for
up to 5 years, which agrees to issuing redeemable, negotiable
receipts.
A security documents company to make serialized receipts.
The ability to call up The Collector's Mint and speak to them (in
English) so that they can strike and ship the barters you pay for to
your area of the world.
A landscape full of private currencies

Silver barters, in conjunction with paper certificates, can easily and

quickly fill the land with diverse but very sound currencies.

Those currencies will reflect the local region's culture, language,

industry, landmarks and spirit.

Locally owned, controlled and regulated, they will become part of the
local culture, benefiting the residents who use them.
Backing with barters the already-existing
unbacked community currencies
If you operate a community currency, you can begin right now to back it with silver
barters.

Use the principles and ideas explained in this presentation to make the necessary
changes.

Then contact me at barterlist@live.com and tell me how you made the transition. Send
me scanned pics of your silver-backed certificates and I will list your new, local
currency at this web site:

sites.google.com/site/bartercoins
How to get new 1/2-oz barters directly
from the mint
You can obtain new, uncirculated barters at cost by contacting The
Collector's Mint. Their contact info is:

The Collector's Mint

Tarzana, Ca.
(818) 609-7666
bartercoins@aol.com
Richard Nelson
Nancy, secretary

Minimum striking order

is 100 barters (50 ounces).
To learn more

Thank you for taking the time to view this online presentation.

To learn more about the silver barters and to see an online list of
businesses and distributors, visit
sites.google.com/site/bartercoins