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Research - Solutions and Alternatives
Salt Spring Island currency (http://saltspring.gulfislands.com/money/welcome.htm)-
Stephen Pederson
The Salt spring island currency is unique in Canada in the way
it addresses the problem of limited circulation faced by other
local currencies. The island dollars are redeemable 100% in Canadian
dollars and so when using them no monetary sacrifice need be made
by the user or the acceptor. All the while money is still raised
for worthy community projects.
On July 17th 2001 a not-for-profit-society, the Salt Spring Island
Monetary Foundation, was established with the purpose of designing,
issuing and maintaining a local currency. This currency was to
raise funds for worthwhile community projects while promoting
local commerce and goodwill. There was a $10.00 annual membership
fee but unlike with the Calgary dollars membership was not the
means used to put the money into circulation. Instead similar
to the Toronto dollars anyone could purchase the currency at a
local financial institution.
The society sought to solve major problems facing other local
currencies which had a difficulty in gaining universal acceptance
since they were not backed 100% by Canadian dollars. The Salt
Spring Island society got around this by making the bills exchangeable
by merchants on par with Canadian currency. No merchant would
be forced to take a hit by accepting the island dollars. Money
still had to be raised in order to service the currency and to
fund community projects which was part of the mission statement
for the organization. This was accomplished by attaching a two
year expiry date to their bills. Any that had not been redeemed
for Canadian dollars before the two year dead line would no longer
be valid. This created a profit for the society which did not
come at the expense of the merchants accepting the bills. Because
of the 100% backing in Canadian dollars the chamber of commerce
of the island immediately put their support behind the project
and many businesses on the island began accepting the bills right
away.
For its profits to be realized the society hoped that many of
the bills would be kept as collectors items or taken off island.
Limited edition works of Art by local artists adorned the bills
and added to their value as a collectible item and the large volume
of tourists visiting the island ensured that much of the local
currency purchased would never be redeemed.
More info @ http://saltspring.gulfislands.com/money/welcome.htm
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