Community Exchange System for creation of work

The picture above is a popular community currency called "the Ithaca Hours" which is based on hours of work but uses the national currency to back it. The hours of work are determined by dollars per hour rate. Other states can become involved in the hours system as well. The Ithaca Hours community currency is a prime example of a Community Exchange System.

What is a Community Exchange System?

A community exchange system is a community based local system of trade in which money other than the national currencies is traded for value based on what the buyer or seller of goods and services determines the value to be. This could be based on what they are already earning in the current marketplace operating from national currency such as hourly rates or flat rates. A Community Exchange System operates on an alternative, parallel, local, or community based currency system. A community exchange system is a new money system. Banks can be created out of this system with alternate currencies yet the currencies do not bear interest and are made solely for the benefit of others who use them for productivity in their communities. Popular methods of doing this are money by time or hours of work, money by talent or specialty, and or free banking. Free banking is banking without charging interest and by giving money to those who can give goods or services to the bank in return for money needed.

Money in this kind of system is basically a way of “score keeping” which keeps a record of who did what for whom and also who sold what to whom. So therefore money can never have a shortage because a third party like banks or government does not have to create it outside of the circuit of buyers and sellers which makes the money and credit free, for the buyers and sellers create it at the moment of trade.

Community currencies help to build up a real sense of community by means of creating a network for businesses, individuals, and organizations to prosper with alternative commerce solutions. Community Exchange System money is public domain money meaning that it is not a form of barter because barter means that there is bargaining involved between the goods or services that they wish to exchange.
What makes this function and work efficiently?
A Community Exchange System starts off with the creation of a directory of a community’s local goods and services offered by the traders registered with them as well what the wants and requirements. Once a trader requires what is advertised then the seller is contacted and the trade then takes place. Those in credit can claim goods and services to the value of their credit available to them and those in debit owe the community goods and services to the value of their debit. Updates are accounted for regularly and newsletters are given out and a list of trades is accounted for so the traders can be informed. Information about the trading positions of others is given and a balance is given so that other buyers can not exploit the system. News is updated for a community exchange system group or region regularly to assist in building links and a stronger sense of community as well.