Do you think the government would have any problem with me printing up my own currency? I don’t mean U.S. currency…that would be counterfeiting and that’s illegal. I’m talking about my own special currency that I personally make and has a genuine U.S. exchange rate. Say 222 Candlemas to the U.S. dollar. And what if I convinced some local businesses to accept my currency which they could then easily exchange for any other currency at the Bank of Candlemas a.k.a my apartment? Just imagine going out on a date to a local restaurant and at the end of the meal you pay with currency featuring none other than the smiling visage of Candlemas. Especially how well this would go over with your date if you yourself were Candlemas.
Since I’m a civil minded guy I also came up with a practical application for my currency. I’ve noticed that a lot of the little family run book stores, pharmacies, restaurants, etc are being edged out by the big Barnes & Nobles, Walgreens and TGIFridays, etc. If these local businesses honored my currency (naturally assuming that the large corporations will not recognize the Candlemas) they could be relatively assured that that money would stay within the community. The only pain in the butt would be coming over to my apartment to get their Candlemas exchanged for U.S. dollars.
I’m honestly thinking of doing this. Do you think the government would have a problem with this? Is this illegal in any way? Are their rules about what I can put on my currency?
This is done all over the place, including a nursery down the road from us that issues “Smith dollars,” at the rate of (say) $1 for every $10 of purchases in the spring. The Smith dollars are only redeemable for three weeks in October.
I think you would avoid any and all problems just so long as all income in Candlemas are reported to the IRS.
Seriously.
Here’s something in a similar vein but the money he creates is worth far, far more than the face value. Part of article below.
“Tonight I moderated an event at the School of the Art Institute of Chicago featuring Lawrence Weschler and J.S.G. Boggs. Weschler’s a friend; Boggs is the subject of his new book. Boggs is an artist who draws money. He draws only one side of a bill. But he doesn’t sell these drawings. Instead, he takes a drawing of, say, a $20 bill out with him to a restaurant, and when it comes time to pay the check, he tries to talk the waitress into accepting the drawing of $20 as his payment. He explains that the value of any work of art is set arbitrarily, so he’s decided to set the value of the drawing of a $20 bill at $20. If she accepts the drawing she’ll have to give him change and a receipt.
Many people don’t accept the drawing. Some do. If they do, the next day Boggs provides a copy of the receipt to one of the many people who collect his work, and that person will come hunting down the drawing. The collector will pay hundreds or thousands of dollars for the little drawing. The waitress will clean up”
There are any number of local “currencies” in use around the country. In Madison, they’re called “hours.” As long as your currency doesn’t violate counterfeiting laws or Treasury regulations, there shouldn’t be a problem. This is just a variation on the barter system.
don’t you need a major amount of gold to make your money worth anything? heh be funny going down to the travel agent
and you need 100000000000000000000000000000000000000000 of your currency for one dollar
actually reminds me of this club in old east Berlin just after the reunification you could only spend east geman marks there and had to change them at the door ,
The hardcopy currency you’re describing are essentially coupons or gift certificates. I don’t think the govenment would care as long as you’re not counterfeiting or committing fraud. To avoid the latter, you might want to make sure your currency was adequately backed (say, with an escrow account you keep to cover all outstanding Candlemas) so if you decide to move on, the currency doesn’t become worthless.
On a related note, there are lots of online currency schemes similar to this. Flooz is one (still in business?), but there are others that aim at particular niche markets.
I want to get my hand on some Candlemas and then I’ll counterfeit the hell out of it and come over to your apartment and ruin your “money” trading venture.
As you can see, I think that there are flaws in your plan. Would you only exchange Candlemas for US dollars with only the people that you give them to? If that is the case you are making finacial transactions more complicated than they need to be.
Some strip joints have their own ‘money’ that patrons can buy with a credit card to tip the girls. Ummmm, at least thats what I have been told ;). How many ‘Foxy Dollars’ can I get for a ‘Candlemas’.
Things like this don’t run afoul of counterfeiting laws, but DO sometimes run into trouble with the IRS. It falls into the same category as barter systems, and the IRS has had fits over large scale organization of such things in the past. If a commercial establishment was selling goods or services in exchange for your “funny money”, they would insist on some way for the profit on the transaction to be converted into dollars so it could be taxed.
If you need vast quantities of gold to make a currency valuable, then all U.S. currency is worthless: the U.S. has been off of the gold standard for a very, very long time; the value of a U.S. dollar is based solely on the perceived value of goods and services in the economy.
I’ll happily take some of those “worthless” U.S. dollars from you if wish…
The only thing that makes a currency valuable is whether it is accepted for payment by providers of goods and services. While backing the currency with precious metals may help to promote the currency as valuable (and may have other beneficial effects, such as minimizing the potential for inflation), it isn’t necessary for the currency to have value – a fact amply demonstrated by the U.S. dollar. Remember, at one point in our nation’s history, beaver pelts were as good as any printed currency.
Burlington, VT has a local currency. As with others, it’s intended to keep money within local merchants. It’s called “Burlington Bread”. the bills are called “slices”. And if that’s not too cute for you, a wad of bills is sometimes referred to as a loaf.
