The E-Sylum:  Volume 10, Number 10, March 11, 2007, Article 16

SPEIGEL ARTICLE ON REGIONAL CURRENCIES IN GERMANY

Regarding several articles about regional money in past E-Sylum's,
Ralf W. Boepple of Stuttgart, Germany forwarded the following lengthy
March 6th article from Spiegel Online:

"How many currencies does Germany have? More than one, it turns out.
In an effort to boost their local economies, 22 regions in the country
have introduced their own alternative tender -- but are they worth the
paper they're printed on?

"At some point in the spring of 2004, the money ran out in the village
of Güsen in the eastern German state of Saxony-Anhalt. At least, Frank
Jansky wasn't receiving any. 'People couldn't pay their bills anymore,'
says Jansky, who runs a lawyer's office in Güsen, where he represents
mainly tradesmen and small construction firms.

"The 'Carlo' is just one of Germany's many regional currencies.
Around that time, Jansky heard about regional currencies and thought:
'That's it.' His idea: Instead of using euros, eastern Germany's
increasingly pauperized population ought to be able to pay in goods
and services. The regional currency would be known as the 'Urstromtaler'
(the name is a play on words, combining 'Urstromtal,' the name of a
Saxony-Anhalt valley, with 'taler,' the name of an old German currency
-- which incidentally also inspired the name 'dollar').

"A network of tradesmen, fortune tellers, herbal experts and ecological
specialists had formed in and around Madgeburg by early October, 2004
-- and they were ready for currency reform. Jansky's co-operative opted
out of the euro on the anniversary of Germany's reunification, October 3.

"Annika Pietsch, who had been up until then just an employee in Jansky's
office, became the director of the new central bank -- which takes the
form of a small blue cash box she carries around with her. She prints
the bills, which feature an ocher-colored map of Saxony-Anhalt, in her
apartment. They can't be counterfeited, she says -- she's tried it
herself to be sure.

"Twenty-two such regional currencies are already in use in Germany,
and 31 more are in preparation. They're called 'Kann Was' ('Can Do'),
'Nahgold' ('Near Gold'), 'Carlo' or 'Volmetaler' -- and their
transactions are eligible for tax just like euros. Frank Jansky --
who also directs Regiogeld, the umbrella association for the currencies
-- was even recently visited by a BBC reporter who asked him to
explain Germany's wondrous proliferation of currencies.

"The 'Chiemgauer' currency (named for the Bavarian region of Chiemgau)
is the most successful to date. The project was started by Christian
Gelleri, a Waldorf school teacher, and six of his students in Bavaria
in 2002. The regional currency's annual turnover climbed to an impressive
€1.5 million ($2 million) last year. About 90,000 Chiemgauers are
currently in circulation. Unlike the Urstromtalers, they can be converted
back into euro for a fee. "Our currency circulates three times more
rapidly than the euro," says Gelleri. But in order to achieve this,
the system puts pressures on currency holders to spend: The Chiemgauer
loses two percent of its value every three months and has to be "topped
up" by purchasing a coupon.

"The idea for a so-called 'depreciative currency' was pioneered by
Silvio Gesell, a German merchant and social reformer. Gesell witnessed
a serious economic crisis in Argentina at the end of the 19th century.
He explained it in terms of excessive hoarding and insufficient
monetary circulation. His solution was to make money perishable like
other commodities -- bank notes, he believed, should 'rust.'"

To read the complete article, see:
Full Story

  Wayne Homren, Editor

	coinbooks.org Web

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