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        VIS-3           Capital ideas.                December 12th, 1985

        Capital Ideas

        The money market.

        It is not always easy to get money (the conventional kind) when 
        you want it.

        This can be a problem and it has been a problem throughout the 
        growth of the LETSystem to date.

        Since we can't seem to borrow money on the grounds that we 
        haven't got it (for very good reasons, of course) it seems better 
        to go and get some of our own.

        This is certainly the most effective method of getting to vote.

        Ethical and practical, legal and general.

        When we realised what LETSystems implied in financial terms, we 
        were faced with something of a dilemma.

        The conventional approach of franchise and control was clearly, 
        in the circumstances, unethical and impractical.

        To charge for a gift is always a mistake, and to charge someone 
        for their right to use their own money is simply absurd.

        To establish any profit extraction from any such community would 
        create irresistible pressure for a cut-rate takeover by another 
        profiteer or unilateral secession by the community as a whole.

        The cost of the lawyers alone would necessitate fees that would 
        be impossble to collect.

        There is no percentage in attempting the impossible.

        Landsman Community Services Ltd.              VIS-3     Page    1

        VIS-3           Capital ideas.                December 12th, 1985

        Getting to vote.

        And yet there was the pressing need to develop a cash flow to 
        support the development of an idea that seemed simply too good to 
        be true and therefore needed to be well handled.

        Reluctantly we concluded that we would probably be forced to make 
        a profit, and then began the long dark night of the soul where we 
        struggled to justify making a profit.

        We had to come up with a rationalisation satisfying to ourselves,
        knowing full well that nobody else, frankly, gives a damn.

        It was a dirty job, but somebody has to do these things.

        This is what we came up with.

        Establishing authority.

        The easiest way to get people to try something is to show that it 

        Having explained exactly how any community could use this method 
        to raise large cash capital funds, it would seem somewhat 
        incongruous that we weren't rich ourselves.

        So we decided to run a couple of prototype LETSystems and keep a 
        proportion of the funds generated to finance research and 

        Exception to prove the rule.

        These will be the only instances of legitimate registered 
        LETSystems being run with profits from their operations accruing 
        to any individual or incorporated body other than that of the 
        members themselves.

        The assets thus accrued by Landsman will be the property of its 
        contributing shareholders who may withdraw their portion of the 
        assets as they choose.

        However the assets will be managed as a local venture capital 
        fund in the communities from which it came in accordance with 
        normal LETSystem practice.

        Landsman Community Services Ltd.              VIS-3     Page    2

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