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ID-16 Systematic Essentials. January 8th, 1986
Any LETSystem with more than two members can be shown to offer
to those members some real advantage over reliance on the present
common expedients of cash or barter.
Cash systems threaten community and direct barter is inflexible
and only occasionally effective.
However, the full advantages of LETSystems will increase as does
the variety of different goods and services available.
At full operation, any local expenditure should be available for
part cash and part green, the proportion of green being dependent
upon the amount of locally added value in the item.
A LETSystem is not however an unlimited growth system.
The most specific reward of a LETSystem is not primarily the
ability to spend.
It is actually the ability to earn, to give service in one's
community and to be acknowledged for that service, which
underlies and maintains the ability to spend, to receive the
products of others.
The ability to earn green is strongly related to the system size.
In a small system the rate at which my expenditure generates
demand for my services is higher and generally more dependable
than in a large.
For this reason, larger LETSystems will tend to have lower
activity rates than smaller.
As a LETSystem grows there will be increasing activity generated
in smaller derivative LETSystems comprised of subsets of the
members of the larger.
The larger system will not lose its relevance, but the activity
and the range of credit and committment will lessen.
The process of reformulation into smaller decentralised nuclei is
similar to those by which natural organisms manage their relation
to their environment.
Whereas each dollar on the credit side of the LETSystem is
balanced by one on the committment, it need not be that there are
an equal number of members on each side.
In terms of the ability to spend green easily and the consequent
experience of value, it is clearly preferable that there are many
members willing at any time to accept green.
Landsman Community Services Ltd. ID-16 Page 1
ID-16 Systematic Essentials. January 8th, 1986
This is most likely if the majority of accounts are in committment.
This can be easily established if a few large positive accounts
emerge.
It is useful to arrange that some of the initial members be
willing to accept green and limit their spending for a while as
the system develops momentum.
If commercial memberships entry fees are billed in green and cash
then the LETSystem administration account can itself fulfill this
function.
These deliberate biases will enhance early system development.
The contrary arrangement, with several large negative accounts
and a consequent majority of positives, is only acceptable in a
mature system, where experienced members will be willing to earn
green dollars although they already have some.
In a new system, most members with positive balances will be
properly concerned to spend those they have earned, probably
their first few transactions before earning again.
Hence early large negative accounts will have a depressing effect
on progress.
While a large temporary or even permanent negative account is not
ultimately critical to the system, it is likely to be a cause of
concern in the early stages and will inhibit trading.
Some care should be taken to avoid these conditions, and the
assumption of such large committments by those closely involved
in the establishment or administration of the system is
particularly contra-indicated.
However much such persons are actually committed to the benefit
of their community, it had better be expressed through the
acceptance of green from others rather than the issue thereof.
Now that the essential development work has been done, and
programs, administration procedures, business accounting packages
etc., are freely available, there need be no great expenditure of
time or effort by any person to initiate and promote a LETSystem.
LETSystems must be understood by all as community facilities
which can be run with absolutely minimal administration.
The initiator of a LETSystem will derive sufficient benefit from
the expansion of the economy within which he/she can earn green
dollars.
The administration of a LETSystem is a part-time occupation.
As the work load expands it should be shared by several members
on a part-time basis.
Landsman Community Services Ltd. ID-16 Page 2
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