Local
Energy
Trading
System
Introduction
- All over the world, communities experience monetary challenges—there is only so much of it to go around and you can’t make your own.
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- We are often discouraged and idle when all we really lack is a means of exchange. There may be plenty of equipment, skills, time, materials, goods
and needs, but we cannot work or trade with each other because there is no agreed means of measuring relative value.
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- We can do something to alleviate this problem by creating local currencies to finance local exchange. A
local currency can’t leave the community it serves, so it maintains connections between people who are free to exchange skills, goods, services and resources.
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- The real wealth of a community lies in the skills and the goodwill of its people. A local currency provides a means by which a measurable value can be placed upon the things which we actually value the most — generosity, friendship,
networking and skill development.
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- A LETS system is about caring and enjoying each other’s company whilst sharing the benefits of trading.
What is LETS
LETS is a bartering system which allows people of goodwill to agree together to share services and goods.
All members of a LETS community benefit from the interaction, mutuality and trust that can only be formed in a healthy community.
LETS is a little more sophisticated than simple one-to-one bartering, creating more flexibility and opportunity. LETS traders agree
to exchange skills, goods, services and resources within the group in exchange for an agreed “currency”. Instead of using traditional currency (dollars), traders use a currency
that represents a mutually agreed value for exchange. The local currency is usually only symbolic (represented in “cheques”) but some LETS groups use their own printed “cash”
- a bit like Monopoly money.
There are now many LETS systems throughout the world, with nearly 200 in Australia. The acronym “LETS” intentionally suggests an
invitation into a culture of agreement.
Range
LETS Toowoomba
Range LETS is a small community group of about fourty members happily trading in Toowoomba the Darling Downs region of
Queensland, Australia. It supports the common principles of LETS Systems in Australia and throughout the world. RangeLETS members enjoy the ability to accept credits from any
recognised LETSystem on the planet. For a diversity of goods and services, we exchange our local currency unit, which we call a Righto. An Accounts Manager records everyone's
balances and issues statements. Rightos are very, very different from federal dollars. Your credit is always good, and interest is never charged.
- A name for the unit of currency in the Toowoomba RangeLETS system is the righto. It is usually abbreviated by a fancy R.
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- Local currency units serve as convenient symbol the “promises” made to one another as trading proceeds. They cannot be lost or stolen. They
pass freely from account to account as members transact. Saving them provides no real benefit. A local currency unit is only of value when it is circulated within the LETS system. It symbolizes the skill,
initiative and energy of the people, offered and received in a co-operative spirit.
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- LETS is about building community. As a LETS member, you would be encouraged to make a commitment to this philosophy and to actively seek ways to
contribute to the System.
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- You have nothing to lose and everything to gain.
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- Imagine that you are able to provide a service such as lawn mowing, for an agreed rate of 20 rightos (local currency units) per hour. You do 2
hours mowing for Cheryl and she writes you a cheque for 40 rightos and you “bank” your cheque.
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- Upon presentation of the Cheque, Cheryl’s account will be debited and yours will be credited.
- Now, you remember that you need to buy a birthday gift for a friend, so you negotiate with Jenny to buy one of her handmade craft items for 30
rightos. You write her a cheque and she banks it.
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- You have acquired a lovely gift without dipping into your dollar bank account and you and Jenny have both contributed valuable (and valued)
skill and energy into the LETS community, while Cheryl has promised to do so in the future. Obviously, the more services that are available and the more energy that is shared, the more useful the system will be for all concerned.
- Your new LETS account will begin with a –10R balance (this is the joining fee). It may at times
hold a positive or negative balance. A positive balance results from some service, skill or goods you have contributed to the
group. A negative balance is not a debt; it simply represents your commitment to provide something of value to someone in the group at an appropriate time. There is however a
debit limit at which point a member becomes a part-trading member i.e. a member who can trade income only until the debt or part thereof is recovered.
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- No interest is charged on or payable to an account. This encourages people to keep spending, as there is no benefit in hoarding a positive
balance. Accounts are monitored by an accounts officer and this helps to keep a record of the “flow of energy” around the group.
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- All cheques need to be presented within three months or will be dishonoured. This keeps the account
balances up to date and accurate.
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- Public Liability and Litigation Insurance is completely the responsibility of each member.
- RangeLETS is not held liable for any accident or liability involving a RangeLETS member while using the RangeLETS system
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- FOR MORE INFORMATION
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- Charmaine Williamson
- Membership officer
- (07) 4632 0467
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- or
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- Vera Externest
- Accounts Manager
- (07) 4632 0828
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- or
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- Jennifer Wright
- Editor
- (07) 4632 1858