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.

  1. 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 ue of directory which includes the users' offers and requests for goods and services.

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

  3. 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.

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

Comments to: lcs@mars.ark.com

Version #003 27-7-96