By Brigette Choiselat
A local trading group is considering introducing a paper form of their community currency to boost membership and trading.
In the Ottawa Local Employment and Trading System (LETS), based in Centretown, members can trade and receive basic goods and services without paying in Canadian dollars.
LETS members use their own form of currency called Ecodollars which are equivalent in value to Canadian dollars. But they only exist as figures on a computer database.
While LETS council is only discussing the issue of paper Ecodollars, Tom Kennedy, an active trader and advocate for community currency, would like to see a paper form introduced by early 2000.
He notes that Guelph LETS, also part of the worldwide system, successfully introduced paper currency over a year ago.
“If they can do it in Guelph, I’m sure we can do it in Ottawa,” says Kennedy.
Unlike bartering, a reciprocal trade does not need to be made. For example, a trader listed as a singing instructor can purchase vegetables from a vegetable trader.
However, singing lessons do not need to be purchased by the vegetable trader. Instead, the vegetable trader’s account is credited for the service offered and the singing instructor is now committed to providing his services to the system.
Ecodollar bills would likely come in denominations of 1$eco, 5$eco, 10$eco and 20$eco and would be traded in much the same way as federal dollars, says Kennedy.
To cover the cost of printing the money, he says businesses could put their logos on the back of the currency in exchange for underwriting the cost of producing it.
“It should increase trading a great deal and it would also cut down on the workload in the LETS office,” notes Kennedy.
Currently, traders must call a central phone line and register the trade so the individual accounts can be adjusted. With paper currency, a direct exchange of cash could be made between LETS members.
The phone line option, however, will continue to be available.
“The telephone call is a bit cumbersome, especially for businesses,” says Kennedy.
“Businesses don’t want to be bothered taking the time to make a phone call when they make a trade and perhaps that’s part of the reason that businesses tend to pass it up,” he says.
Over 200 traders are now registered with LETS, five of which are listed as businesses, though many traders run home-based businesses.
However, only 100 traders are considered active and that can create problems.
“Right now we’re a little challenged because there’s not enough activity within the system and we need to get new members,” says council member Nathalie Dufault.
Kennedy hopes paper currency will make the system more appealing to businesses and new members, as well as increase trade among current members.
Centretown resident, Judy Janes, has been an Ottawa LETS member since 1996.
She normally trades vegetables and items that she no longer needs in exchange for such services as transportation and carpentry.
She says her greatest concern is having a variety of goods and services from which to choose.
She supports a paper currency if it would increase the number of traders.
“If that brings more traders that’s great,” she says. “I think it’s really beneficial for people on low income that want to save a little money.”
Dufault notes that while the system can help people on low income, it benefits everyone involved because it keeps the money within the community.
Council is expected to discuss the possibility of paper currency in more detail at the next meeting.