# Is it illegal to make/use your OWN Currency? **URL:** \ **Category:** Factual Questions\ **Created:** [April 29, 2005, 4:50pm UTC](https://boards.straightdope.com/t/is-it-illegal-to-make-use-your-own-currency/301734 "2005-04-29T16:50:28Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![ralph124c](https://avatars.discourse-cdn.com/v4/letter/r/8797f3/32.png) [@ralph124c](https://boards.straightdope.com/u/ralph124c)\ **Post date:** [April 29, 2005, 4:50pm UTC](https://boards.straightdope.com/t/is-it-illegal-to-make-use-your-own-currency/301734/1 "2005-04-29T16:50:28Z")
I ask this because i recall that during the graet depression 9which was a time of great deflation) , cash was hard to come by. in an effort to stimulate commerce, many cities and towns promoted 'local currencies"-these were effectively “IOUs”, that you could use to spend at local businesses. Now, i belive that coining/printing money is now the exclusive right of the federal reserve…but supose I pay a guy with an IOU (promissory note), which i value at $500.00. Can he turn around and sell that note to third party? or use is to buy from someone elese? Or is this a violation of commercial codes. heck, suppose a city is short of cash-could it issue promissory notes? I’d like to issue my own dollars-I have some good designs to try out! 😃 ---
**Author:** ![Dewey\_Finn](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/dewey_finn/32/4222_2.png) [@Dewey\_Finn](https://boards.straightdope.com/u/Dewey_Finn)\ **Post date:** [April 29, 2005, 4:53pm UTC](https://boards.straightdope.com/t/is-it-illegal-to-make-use-your-own-currency/301734/2 "2005-04-29T16:53:14Z")
You should read up on JSG Boggs, an artist who does exactly that. See [http://www.jsgboggs.com/](http://www.jsgboggs.com/). ---
**Author:** ![Quercus](https://avatars.discourse-cdn.com/v4/letter/q/7ab992/32.png) [@Quercus](https://boards.straightdope.com/u/Quercus)\ **Post date:** [April 29, 2005, 5:10pm UTC](https://boards.straightdope.com/t/is-it-illegal-to-make-use-your-own-currency/301734/3 "2005-04-29T17:10:13Z")
Yes. In fact, you can get a kit on how to do so. Ithaca Hours is one of the best known and most successful local currencies, and they have information on how to start your own. [http://www.ithacahours.com/](http://www.ithacahours.com/) ---
**Author:** ![mhendo](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/mhendo/32/3159_2.png) [@mhendo](https://boards.straightdope.com/u/mhendo)\ **Post date:** [April 29, 2005, 5:39pm UTC](https://boards.straightdope.com/t/is-it-illegal-to-make-use-your-own-currency/301734/4 "2005-04-29T17:39:59Z")
**Quercus** beat me to it. I was going to mention Ithaca Hours also. On a more general note, currency is simply a medium of exchange. You can make whatever you want (except, of course, copies of real federal currency), and if someone will accept it as payment then that’s all you really need. If i fix your roof, and am happy to accept in return a note promising that you will fix my car, that should generally be fine. Of course, this doesn’t address the issue of taxation. If everyone started bartering like this and not keeping official records, i’m sure the IRS might have something to say about the lost tax revenue. According to the Ithaca Hours site linked by **Quercus** , “HOURS are taxable income when traded for professional goods or services.” Not sure how this is traced, or exactly what qualifies as “professional goods or services.” ---
**Author:** ![BobT](https://avatars.discourse-cdn.com/v4/letter/b/8e8cbc/32.png) [@BobT](https://boards.straightdope.com/u/BobT)\ **Post date:** [April 29, 2005, 5:48pm UTC](https://boards.straightdope.com/t/is-it-illegal-to-make-use-your-own-currency/301734/5 "2005-04-29T17:48:24Z")
The IRS has rules on bartering and everything is pretty well-defined. [http://www.irs.gov/businesses/small/article/0,,id=113437,00.html](http://www.irs.gov/businesses/small/article/0,,id=113437,00.html) ---
**Author:** ![Ethilrist](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/ethilrist/32/4604_2.png) [@Ethilrist](https://boards.straightdope.com/u/Ethilrist)\ **Post date:** [April 29, 2005, 6:00pm UTC](https://boards.straightdope.com/t/is-it-illegal-to-make-use-your-own-currency/301734/6 "2005-04-29T18:00:02Z")
How does this differ from writing checks? ---
**Author:** ![Padeye](https://avatars.discourse-cdn.com/v4/letter/p/a9a28c/32.png) [@Padeye](https://boards.straightdope.com/u/Padeye)\ **Post date:** [April 29, 2005, 6:08pm UTC](https://boards.straightdope.com/t/is-it-illegal-to-make-use-your-own-currency/301734/7 "2005-04-29T18:08:43Z")
> [@Ethilrist](#): > > How does this differ from writing checks? Honoring the check is handled by the bank. Honororing your own currency is your responsibility. ---
**Author:** ![Raguleader](https://avatars.discourse-cdn.com/v4/letter/r/258eb7/32.png) [@Raguleader](https://boards.straightdope.com/u/Raguleader)\ **Post date:** [April 29, 2005, 6:49pm UTC](https://boards.straightdope.com/t/is-it-illegal-to-make-use-your-own-currency/301734/8 "2005-04-29T18:49:31Z")
Also of note are [Liberty Dollars](http://www.libertydollar.org/html/articles/nelson.htm) which are backed by gold and silver and issued by some activist group calling themselves the National Organization for the Repeal of the Federal Reserve Act and the Internal Revenue Code (NORFED). It seems to be worth mentioning that they mis-spell “Protest” but I’m willing to give them the benefit of the doubt and assume their organization as a whole is run better than their spell-checker. Their money looks neat, in any case. ---
**Author:** ![Little\_Nemo](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/little_nemo/32/3120_2.png) [@Little\_Nemo](https://boards.straightdope.com/u/Little_Nemo)\ **Post date:** [April 29, 2005, 9:42pm UTC](https://boards.straightdope.com/t/is-it-illegal-to-make-use-your-own-currency/301734/9 "2005-04-29T21:42:32Z")
There’s also the currency notes that were issued by Emperor Norton to finance his administration. While many people originally accepted them only as a gesture of affection, they’ve actually appreciated far above their supposed face value and have turned out to be a sound investment. ---
**Author:** ![Raguleader](https://avatars.discourse-cdn.com/v4/letter/r/258eb7/32.png) [@Raguleader](https://boards.straightdope.com/u/Raguleader)\ **Post date:** [April 29, 2005, 10:15pm UTC](https://boards.straightdope.com/t/is-it-illegal-to-make-use-your-own-currency/301734/10 "2005-04-29T22:15:35Z")
> [@Little Nemo](#): > > There’s also the currency notes that were issued by Emperor Norton to finance his administration. While many people originally accepted them only as a gesture of affection, they’ve actually appreciated far above their supposed face value and have turned out to be a sound investment. Ahh yes, I forgot about Emporer Norton I. ---
**Author:** ![Gary\_Robson](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/gary_robson/32/3448_2.png) [@Gary\_Robson](https://boards.straightdope.com/u/Gary_Robson)\ **Post date:** [April 29, 2005, 10:38pm UTC](https://boards.straightdope.com/t/is-it-illegal-to-make-use-your-own-currency/301734/11 "2005-04-29T22:38:13Z")
This is no different from stores issuing gift certificates. You’re free to buy a gift certificate, give it away, trade it for stuff, sell it, or whatever. It’s just a promise on the part of the store to deliver something in return for the certificate. ---
**Author:** ![Tripler](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/tripler/32/21807_2.png) [@Tripler](https://boards.straightdope.com/u/Tripler)\ **Post date:** [April 29, 2005, 10:42pm UTC](https://boards.straightdope.com/t/is-it-illegal-to-make-use-your-own-currency/301734/12 "2005-04-29T22:42:02Z")
> [@Quercus](#): > > Yes. In fact, you can get a kit on how to do so. > Ithaca Hours is one of the best known and most successful local currencies, and they have information on how to start your own. > [http://www.ithacahours.com/](http://www.ithacahours.com/) A slight aside, but how the heck does this work? Isn’t it basically inflating the local economies in Ithaca and surrounding communities by displacing hourly wages? That strip mentions movie theaters that accept “hours”. I can’t imagine any sort of movie theater employing a young kid for $10.00 an hour, just to rip tickets and serve popcorn. I’m not knocking the idea, just really confused how $10 = 1 Hour. Tripler Sounds suspiciously Communist to me. 😉 ---
**Author:** ![China\_Guy](https://avatars.discourse-cdn.com/v4/letter/c/779978/32.png) [@China\_Guy](https://boards.straightdope.com/u/China_Guy)\ **Post date:** [April 29, 2005, 11:51pm UTC](https://boards.straightdope.com/t/is-it-illegal-to-make-use-your-own-currency/301734/13 "2005-04-29T23:51:53Z")
bearer bonds are a form of currency ---
**Author:** ![Meeko](https://avatars.discourse-cdn.com/v4/letter/m/e495f1/32.png) [@Meeko](https://boards.straightdope.com/u/Meeko)\ **Post date:** [April 30, 2005, 2:40am UTC](https://boards.straightdope.com/t/is-it-illegal-to-make-use-your-own-currency/301734/14 "2005-04-30T02:40:04Z")
Boxtops? Skate Keys? UPC Proofs? ---
**Author:** ![wevets](https://avatars.discourse-cdn.com/v4/letter/w/e9a140/32.png) [@wevets](https://boards.straightdope.com/u/wevets)\ **Post date:** [April 30, 2005, 6:03am UTC](https://boards.straightdope.com/t/is-it-illegal-to-make-use-your-own-currency/301734/15 "2005-04-30T06:03:24Z")
> [@Raguleader](#): > > Ahh yes, I forgot about Emporer Norton I. The best emperor the United States ever had! 😉 ---
**Author:** ![BobT](https://avatars.discourse-cdn.com/v4/letter/b/8e8cbc/32.png) [@BobT](https://boards.straightdope.com/u/BobT)\ **Post date:** [April 30, 2005, 6:13am UTC](https://boards.straightdope.com/t/is-it-illegal-to-make-use-your-own-currency/301734/16 "2005-04-30T06:13:47Z")
Do those silver-backed dollars have a picture of William Jennings Bryan on them? I’m tired of constantly being crucified on a cross of gold! ---
**Author:** ![HeyHomie](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/heyhomie/32/207_2.png) [@HeyHomie](https://boards.straightdope.com/u/HeyHomie)\ **Post date:** [April 30, 2005, 10:57am UTC](https://boards.straightdope.com/t/is-it-illegal-to-make-use-your-own-currency/301734/17 "2005-04-30T10:57:50Z")
And let’s not forget Disney Dollars. ---
**Author:** ![Eonwe](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/eonwe/32/240_2.png) [@Eonwe](https://boards.straightdope.com/u/Eonwe)\ **Post date:** [April 30, 2005, 6:07pm UTC](https://boards.straightdope.com/t/is-it-illegal-to-make-use-your-own-currency/301734/18 "2005-04-30T18:07:52Z")
We’ve got a [local currency](http://www.burlingtoncurrency.org/) here too. ---
**Author:** ![Grendel\_s\_Father](https://avatars.discourse-cdn.com/v4/letter/g/b782af/32.png) [@Grendel\_s\_Father](https://boards.straightdope.com/u/Grendel_s_Father)\ **Post date:** [April 30, 2005, 7:01pm UTC](https://boards.straightdope.com/t/is-it-illegal-to-make-use-your-own-currency/301734/19 "2005-04-30T19:01:36Z")
I’m not sure if it’s the same idea as a local currency, but there are several [online games](http://www.walrusmagazine.com/04/05/06/1929205.shtml) which have their own economy, and in which game money is traded for things in the real world (usually with eBay, etc.) ---
**Author:** ![engineer\_comp\_geek](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/engineer_comp_geek/32/504_2.png) [@engineer\_comp\_geek](https://boards.straightdope.com/u/engineer_comp_geek)\ **Post date:** [April 30, 2005, 7:54pm UTC](https://boards.straightdope.com/t/is-it-illegal-to-make-use-your-own-currency/301734/20 "2005-04-30T19:54:08Z")
I recall a news story about 10 years ago or so where a group of people used a point system to trade goods and services. The IRS ruled that they were effectively using their own currency and went after them for tax evasion. [Next page](https://boards.straightdope.com/t/is-it-illegal-to-make-use-your-own-currency/301734.md?page=2)