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        ID-9            LETSystems.                   December 12th, 1985


        A LETSystem is a self-regulating economic network which allows 
        its members to issue and manage their own money supply within a 
        bounded system.

        Essentially, a LETSystem resembles a bank, and being a member of 
        a LETSystem is as simple as having another bank account.   

        Members' accounts hold "green" dollars, a currency equivalent in 
        value to the federal dollar, but no money is ever deposited or 

        All accounts start at zero and members can use "green" dollars 
        only with other members.

        The system is thus always exactly balanced with some of the 
        members in credit and others in debit.

        This creates a local recirculatory currency, whose effectiveness 
        is determined by these arrangements : 

             - there is never any obligation to trade.
             - any member may know the balance and turnover of another 
             - no interest is charged or paid on balances.
             - administrative costs are recovered, in the internal 
               currency, from member accounts on a cost of service basis.

        LETSystems are self-stabilising and can be used with total 
        freedom from risk of financial loss.

        Set-up costs are minimal and the operation can be self-supporting 
        from the outset even at a fraction of its full capacity.

        Costs at full operation are estimated to be less than 0.5% of 

        Administration is simple and requires no special training.

        Henry Ford said it was good engineering to "Simplicate and add 

        We consider that LETSystems as described above represent the 
        simplest and lightest method yet devised to account for the give 
        and take that is trading in the world.

        A diligent exploration will reveal that they handle with total 
        ease all of the technical difficulties described in ID-7

        Landsman Community Services Ltd.              ID-9      Page    1

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