LETSystems and 'local money'




A LETSystem:

	is a community-based trading network,
	uses 'local money',
	is not-for-profit and cost-of-service,
	maintains accounts of trading.

LETSystems provide an easy means for people to buy and sell goods and services using local money 
within the community of users. This is facilitated by the use of a directory which includes the users' 
offers and requests for goods and services.

The currency unit for local money, is conveniently equivalent to the federal dollar. Local money cannot 
be spent outside of the network of LETSystem users. Each user is issued  an account with a simple 
unique identification, just like an ordinary bank account.

All accounts start with a zero balance. An account may be in 'credit' or 'debit'. No interest is paid on an 
account in credit nor charges made on an account in debit. Unlike a bank account, users can go into 
debit without penalty. Being in debit is not being in debt. It is simply a commitment to return value to 
the community of users. This means that you can spend local money immediately. There is no need to 
earn before you can spend.

Being in 'debit' is more properly called being 'in commitment',  i.e. the user is committed to giving value 
to the community of other LETSystem users. Similarly, being in 'credit' is called 'in acknowledgement' 
i.e. the payment received is acknowledgement for the services given to the community of users. 
LETSystems are profoundly grounded in principles of community development and acknowledgement 
of the efforts put in by people to develop their community.

Trading transactions are recorded using accounting software on computers. A statement of account is 
mailed to the account-holder each month.

Version #001 19-12-94

Compiled for LETSgo Manchester
By Andy Blunt of The Missing Link



Santa Cruz community currencies project 	SC c c p	PO Box 1254 , Santa Cruz, CA  95061 
            www.communityway.org	429-2232	santacruz@communityway.org