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No Account Charges

We have come up with a novel way to ease the administration. We have done away with account charges for cheques of 5 units or less, and all together on childrens accounts. A vast majority of trading takes place at our monthly markets and purchases of these amounts make up the bulk of trading. Do you foresee any problems arising from this?

Only that the poor person doing the accounts might get rather miffed. They still have to do the same work whether the transaction is for 2 units or 2000 units, and we are sure they would like to be paid accordingly. As it is there is an incentive to keep purchases below 5 units at a time and not incur any charges ever! By keeping to cost of service everyone gets treated fairly, and no one can then take advantage of the system. We recommend a set chequing charge per cheque processed, say 0.10 - 0.20 units for each cheque. Also, at a trading event how about a tally sheet which purchasers sign at point of sale, saves paper, (same chequeing charge per transaction applies).

The Management Rules OK!

Recently I was taken aback to find our management group writing letters of reprimand to members for showing copies of our directory to non members. I thought the idea was to encourage others to join in. Have I got it wrong, is LETS some kind of secret society?

Well obviously some people think so and get power mad when given a position in management! A LETSystem is run for and by its account holders and for that reason it functions best without committees, constitutions, or management groups. As far as showing the directory to outsiders goes this surely is a matter for individuals to decide. We find that the odd flash of the directory works marvels, remember a picture is worth a thousand words. Also, no ownership, no secrecy.

The Bottomless Pit

Just about everybody who does anything for our LETS gets paid. Be it putting up posters, designing a leaflet or introducing new members. Great, why should anyone do something for nothing. Only snag is they all get paid out of the system admin account, which is now in commitment to the tune of several thousand. Everyone says that as they don't really exist, it doesn't matter, but I'm not so sure. Surely this can't go on indefinitely?

Yes, they are right in that the units don't really exist they are not tangible, but then again neither is cash really. You can't eat it or wear it, you exchange it for food or clothing, it is a promise that is redeemable. The same with LETS currency, it only has value when backed by a promise, a commitment to the community to provide goods or services to the value issued. The admin account can not make promises as there is no one to honour them. Admin accounts therefore should not be allowed to issue currency, i.e. go into negative. Might we suggest that you keep the admin account for paying those doing the accounts (as this generates income via the chequeing charge) and perhaps open a new account for a development fund which again only runs in the positive with income from donations.

Not a LETSystem

After reading in issue 1 of the five fundamentals of a LETSystem, we discovered that we are not a LETSystem. We operate differently, does this matter?

No, it doesn't matter. There's room for everyone in this world. The LETSystem is just one design for using a local currency and there are many others, with different rules & agreements. The adoption of the five fundamentals and the name LETSystem simply allows people to know precisely the rules of the trading network they are participating in.

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