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Abaco

Local Currencies

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I learned of local currencies in reading about a recent Federal ruling against a man who had created gold and silver coins. I read of "Detroit Cheers". This is something I've heard nothing about until now but have learned that the popularity of local currencies as flared in the past few years. I understand that this also happened during the Great Depression. Is anybody else here familiar with this concept or know much about it? Are any backed in precious metals?

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I learned of local currencies in reading about a recent Federal ruling against a man who had created gold and silver coins. I read of "Detroit Cheers". This is something I've heard nothing about until now but have learned that the popularity of local currencies as [sic] flared in the past few years. I understand that this also happened during the Great Depression. Is anybody else here familiar with this concept or know much about it? Are any backed in precious metals?

I have seen only a little of this. It would seem to stem from a misinterpretation of Article I, Section 10 of the US Constitution:

"No State shall [. . . ] coin money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; [. . . ]."

An item I read a while back claimed that states could create their own currencies as long as they were of gold or silver, citing the above Article and Section as authority. I haven't found that item yet.

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Upon further reading, I realize my response to the OP probably did not answer his question. These local currencies appear to be mostly marketing gimmicks. Here in COS, the Downtown Development Authority came up with a scrip, exchangeable for US dollars, to be used for purchases at downtown businesses. I don't remember what it was called or if it is still in use. As for Detroit, it's going to take a lot more than a few "cheers" to keep a sinking ship afloat.

As an addendum to my original reply, here is the text of a bill introduced into the Virginia legislature. It apparently died in committee.

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Actually, I've seen some of it. The biggest precious metals scheme I've seen is something called the American Open Currency Standard (AOCS) which uses gold, copper and silver medallions in trade. There are even silver John Galt coins, and copper medallions modeled after the D'Anconia Copper company

The main AOCS website

http://www.opencurrency.com/

John Galt silver coins

http://www.johngaltcoin.com/

D'Anconia Copper coins

http://www.thesocietyofreason.com/cart/ind...p;productId=116

I just ordered some of the copper coins; in my opinion they are a great novelty item to spread publicity about Rand and about currency issues. Also, a group of us are going to get together to see the movie next week, and I thought they'd make a fun keepsake for whoever showed up (provided of course, that I get them in time)

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Update: I just checked the copper coins website and it appears I took the last 2 rolls. Guess anyone else who wants them will have to wait a bit :-(

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That's really neat Brianna. Thanks for the info. You too MC. Yeah, I think I've heard of the novelty/marketing efforts like this.

Ironically, I'm trying to schedule my regular purchase of gold coins and am having trouble getting into my regular source. Seems that I have to wait in line to buy the stuff now. Go figure. Alternate shops are either sold out or are just too hard to deal with. When did angry yelling become a negotiation method? :)

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That's really neat Brianna. Thanks for the info. You too MC. Yeah, I think I've heard of the novelty/marketing efforts like this.

Ironically, I'm trying to schedule my regular purchase of gold coins and am having trouble getting into my regular source. Seems that I have to wait in line to buy the stuff now. Go figure. Alternate shops are either sold out or are just too hard to deal with. When did angry yelling become a negotiation method? :)

A good place to make regular purchases is www.silverandgoldshop.com. They sell the silver directly, and they will get the gold for you by special order (call or email them via the info on the website). 1, 1/2, 1/4, 1/10 and even 1/20 oz gold coins are available for order. I make regualr small silver purchases with them and they have always given me excellent service.

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Thanks softwareguru and Brianna for the advice.

I saw something interesting yesterday. After a long, trying day I decided to blow off some steam by riding my mountain bike. I headed about 4 miles upstream along a river we live near. There are many spots there where I used to catch trout. Our river has been swollen due to the very wet winter. At one of my old fishing spots I came upon two young men panning for gold in a puddle (where there was recent flooding). They opened up and shared with me what success they were having. They were finding plenty of gold. It was pretty interesting to see that. Looks like I may try a little panning when the water drops more near my place. We live in the middle of gold country and it's neat to see real nuggets plucked once in a while. Lots of gold rush history around here too.

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