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Rethinking our Centralized Monetary System: The Case for a System of Local Currencies
As we approach the 21st century, we must rethink our centralized monetary system as part of a larger reexamination of existing political economy, according to Solomon. In questioning the passive acceptance of a federal monopoly in producing money, the author challenges prevailing notions of progress and economic life. Advancing the idea of local currencies to promote a political economy based on empowerment, self-reliance, and ecological permanence, the book discusses three viable systems, all of which are possible under federal and state laws: barter, customer discounts, and local scrip not pegged to the U.S. dollar. The business and practical aspects of each of these systems is considered. This original work will be of interest to scholars, students, and policy-makers in political economy, money and banking, public finance, and public policy.
184 pages, Hardcover
First published January 19, 1996
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About the author
Lewis D. Solomon
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There is more than one author in the GoodReads database with this name
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Displaying 1 - 2 of 2 reviews
February 7, 2013
Not a book for everyone, but if you're interested in getting involved with local currency then you would appreciate the research he has done and the conclusions he comes to.
February 19, 2016
Contents: ev. of us $, context / obj. of locla cur. iss., barter, discount scrip, local curr. not pegged to usd, legal aspects of locl curr
Forwd by Bob Swann
Notes: most earlier lcl curr's prohibited or no longer needed
cites problm of colonial paper $ as reason Constitution banned all but Fed. issued/borrowed coin. (he hasn't seen the point on the MD colony...)
"societal theory of money" -cites Thorington v. Smith on current $ (upheld Confed. $ at time it was current in Confederacy...)
cites US v. Van Auken, Hollister v. Mercantile Institution: validated pripvate notes iss. in 1874/6 :notes of limited circ. -congress has no motive to stop v. small curr.s
1830-1860 many private coins <- gold rush;
1873, 1909, 1948 Cong. proh. private coin. but not lcl paper curr. Says fractional paper currency < 1$ is crime... (see ref 41...)
current money==lawful money (citation 47)
cites Gellman court and US v. Falvey: lcl $ ok if not meant as US $; May issue coins/tokes for merchandise.
discusses counterfeiting...
Poindexter v. Greenhow: states may issue tax coupons since "not emitted...as a substitute for money" (but only states, not lcl gov.)
see ref. 76 -local govs may not issue anything that looks like money
ref 78: private bills of credit are ok.
"death tax"
1863 & 65, '66: taxes on curculating non-US monies... ref. 82/83 -> 1867 to ALL
that stoped state banks from issuing money; becames banks of deposit w/checking as $
(ref. 97:) Tax Reform Act of 1976 -10% 'death tax' repealed as obsolete
1900 Gold Sta. Act elim. silver; Gold Clause Cases; 1977 allowed US citizens to own/buy/sell gold and enforce gold clauses again. So contracts may now pay in USD, scrip, or alt. curr.
Vermont ==best state for using scrip. most Southern states prohibit
Fed. res. system prohibits alt. curr./lcl scrip transfer, but there are banks outside the System
suggests possible creation of CHIPS (Clearing house interbank payment system) for alt. curr.
MA banks can act as agents i.e. 'Local Stable Currency Experiment' ref. 156
see Blue Sky laws -see exempt securities and exempt transactions...
courts divided on what is a security
under Reves court factors, local scrip like Deli Dolars != security (defines security as used to raise $ for a business and the buyer expecting to make a profit...)
Constant (for profit, floats ind. of USD) may -SEC scrutiny
clearly not stocks
short term notes exemptions in 49 states and DC
non-profit exemptions in 47 states and DC
taxing barter value :LETS and Ithaca Hrs taxable as barter, IRS form 1096/1099B/6045...
Volunteer hours not contra. obl. to get matched service in return not taxable
IRS: either tax the Deli Dollar owner for $9, or tax the buyer for $1 'interest' when redeeming a Deli Dollar (bought $10 services for $9) if 1.enforceable 2 provable &. 3.unconditional -but, also not subject to reporting requ.==compliance headache for IRS
concl: lcl cc may have ?'s under securities laws, but no problem exc. VA and Arkansas
(yet another reason not to live in such racist states...)
problem ==fractional money (small coins): quotes F. A. Hayek: need small change (ref. 281)
Read, Write, Dream, Teach !
ShiraDest
19 February, 12016 HE
Forwd by Bob Swann
Notes: most earlier lcl curr's prohibited or no longer needed
cites problm of colonial paper $ as reason Constitution banned all but Fed. issued/borrowed coin. (he hasn't seen the point on the MD colony...)
"societal theory of money" -cites Thorington v. Smith on current $ (upheld Confed. $ at time it was current in Confederacy...)
cites US v. Van Auken, Hollister v. Mercantile Institution: validated pripvate notes iss. in 1874/6 :notes of limited circ. -congress has no motive to stop v. small curr.s
1830-1860 many private coins <- gold rush;
1873, 1909, 1948 Cong. proh. private coin. but not lcl paper curr. Says fractional paper currency < 1$ is crime... (see ref 41...)
current money==lawful money (citation 47)
cites Gellman court and US v. Falvey: lcl $ ok if not meant as US $; May issue coins/tokes for merchandise.
discusses counterfeiting...
Poindexter v. Greenhow: states may issue tax coupons since "not emitted...as a substitute for money" (but only states, not lcl gov.)
see ref. 76 -local govs may not issue anything that looks like money
ref 78: private bills of credit are ok.
"death tax"
1863 & 65, '66: taxes on curculating non-US monies... ref. 82/83 -> 1867 to ALL
that stoped state banks from issuing money; becames banks of deposit w/checking as $
(ref. 97:) Tax Reform Act of 1976 -10% 'death tax' repealed as obsolete
1900 Gold Sta. Act elim. silver; Gold Clause Cases; 1977 allowed US citizens to own/buy/sell gold and enforce gold clauses again. So contracts may now pay in USD, scrip, or alt. curr.
Vermont ==best state for using scrip. most Southern states prohibit
Fed. res. system prohibits alt. curr./lcl scrip transfer, but there are banks outside the System
suggests possible creation of CHIPS (Clearing house interbank payment system) for alt. curr.
MA banks can act as agents i.e. 'Local Stable Currency Experiment' ref. 156
see Blue Sky laws -see exempt securities and exempt transactions...
courts divided on what is a security
under Reves court factors, local scrip like Deli Dolars != security (defines security as used to raise $ for a business and the buyer expecting to make a profit...)
Constant (for profit, floats ind. of USD) may -SEC scrutiny
clearly not stocks
short term notes exemptions in 49 states and DC
non-profit exemptions in 47 states and DC
taxing barter value :LETS and Ithaca Hrs taxable as barter, IRS form 1096/1099B/6045...
Volunteer hours not contra. obl. to get matched service in return not taxable
IRS: either tax the Deli Dollar owner for $9, or tax the buyer for $1 'interest' when redeeming a Deli Dollar (bought $10 services for $9) if 1.enforceable 2 provable &. 3.unconditional -but, also not subject to reporting requ.==compliance headache for IRS
concl: lcl cc may have ?'s under securities laws, but no problem exc. VA and Arkansas
(yet another reason not to live in such racist states...)
problem ==fractional money (small coins): quotes F. A. Hayek: need small change (ref. 281)
Read, Write, Dream, Teach !
ShiraDest
19 February, 12016 HE
Displaying 1 - 2 of 2 reviews