Toronto $ Dollar Builds Community (Life.ca)

A new local currency was launched in Toronto in early December. The Toronto Dollar is community money, backed and used like regular money, except it is more valuable for community building.

First, businesses agree to accept Toronto Dollars at par. Then, as residents, local businesses, community organizations and visitors spend their Toronto Dollars with each other, they generate business in the neighbourhood and get goods and services they want - as well as help the unemployed and homeless.

Each time someone exchanges, at the 100 percent exchange rate, federal dollars for Toronto Dollars to use in the community, 10 percent goes directly to a fund of Toronto Dollar Community Projects Inc. The main purpose of this fund is to create work - through community initiatives and groups - for those who are on low incomes, unemployed or homeless. The first beneficiary of the 10 percent fund will be Out of the Cold, a volunteer project to help the homeless.

Toronto Dollars is a project of St. Lawrence Works, a coalition of community, business and cultural groups. The organization, run and staffed by volunteers, has been joined by over 50 cooperating neighbourhood businesses, as well as community groups, charitable organizations, churches and individuals. They have come together under Toronto Dollar's theme: "Money That Builds Community" to give birth to the Toronto Dollar in the historic downtown St. Lawrence neighbourhood. The plan is to encourage other interested neighbourhoods in the new City of Toronto to introduce the Toronto Dollar to strengthen their local economies while helping the unemployed and homeless.

The Toronto Dollar is a "cash-backed" currency since it can be redeemed by participating businesses for federal dollars kept in a trust fund. When individuals and organizations exchange their federal for Toronto dollars, the 10 percent is deposited to the Toronto Dollar Community Programs Trust Fund held by Toronto Dollar. Ninety percent is deposited to the Toronto Dollar Reserve Trust Fund, which backs Toronto Dollars in circulation. The earnings from the Reserve Fund are expected to offset Toronto Dollar expenses and fund administration. Participating businesses can, when necessary, redeem Toronto Dollars at their 90 percent redemption rate from the Toronto Dollar Reserve Trust Fund. Or, like anyone else, participating businesses can use their Toronto Dollars, at 100 percent value, to purchase goods and services for themselves or to make donations.

The management of the Toronto Dollar Reserve Trust Fund, as well as the circulation and redemption of Toronto Dollars, is contracted to Toronto's First Post Office which will also serve as a central distribution centre and Exchange Agent. Exchange Agents will be located conveniently throughout the St. Lawrence neighbourhood. The first Agents are: Toronto Dollar in the Flatiron building, at 49 Wellington Street East, St. Lawrence Market at Front and Jarvis, and Frida Craft Store at 39 Front Street East. Distinctive Toronto Dollar Decals are displayed by businesses accepting Toronto Dollars.

The Toronto Dollar currency is printed in denominations of $1, $5, $10 and $20 by the Canadian Bank Note Company, which also prints federal currency. Toronto dollars are printed on special paper and include security measures against counterfeit printing.

The downtown St. Lawrence neighbourhood comprises a mix of people of all ages and walks of life as well as theatres, businesses, restaurants, historic buildings, educational institutions and more. It extends from Yonge Street east to Parliament and Queen Street south to the railroad tracks.

The Toronto Dollar group - like communities throughout the world who are working in similar ways to build their local economies - believe that local citizens and local businesses have the will, the energy and self-reliance to strengthen their sense of community, its economy, health and social fabric.