About The Toronto Dollar

JCT: Great news about a new local currency in Toronto. Though it's a 100% reserve LETS rather than a 0% reserve LETS, it demonstrates some of the benefits that are inherent in all LETS.

News release
The Toronto $Dollar To Be Launched Dec. 5 by Mayor Lastman at Historic St. Lawrence Market.

Toronto - Toronto's Mayor, Mel Lastman, will launch the Toronto Dollar, a new local currency, at 11:00 a.m. Saturday, December 5 at historic St. Lawrence Market on Front Street at Jarvis. - exchanging, dollar for dollar, his federal dollars for Toronto Dollars and spending them with participating local businesses.

The Toronto Dollar is community paper money, backed and used like regular money, except it is more valuable for community building. The new currency is being introduced by Toronto Dollar Community Projects Inc., a not for profit community group recently formed for this purpose. 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 one exchanges, at the 100% exchange rate, federal dollars for Toronto Dollars to use in the community, 10% 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. Toronto Dollars is a project of St. Lawrence Works, a coalition of community, business and cultural groups. The first beneficiary of the 10% fund will be "Out of the Cold", an important volunteer project to help the homeless. The Toronto Dollar 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 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% is deposited to the Toronto Dollar Community Programs Trust Fund held by Toronto Dollar. 90% is deposited to the Toronto Dollar Reserve Trust Fund which backs Toronto Dollars in irculation. 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% redemption rate from the Toronto Dollar Reserve Trust Fund. Or, like anyone else, participating businesses can use their Toronto Dollars, at 100% 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 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. The Toronto Dollar is a pilot project of St Lawrence Works currently focussing in Toronto's St. Lawrence neighbourhood. It is hoped that the idea will spread throughout the city. The Toronto Dollar group
will be glad to act as a resource for any citizens and community organizations wishing to use the Toronto Dollar within other neighbourhoods. The Toronto Dollar is being born in this rich milieu
to further strengthen local businesses, and to enhance the health and social fabric of a community that already works.

Many communities throughout the world are acting in creative ways to build their local economies by using local currencies from the Tlalocs in Mexico to the Sel in France. The Toronto Dollar is part of this worldwide unstoppable trend. It is based on a belief that local citizens and local businesses have the will, the energy and the self-reliance to solve local problems and to bridge the
increasing gap between rich and poor.

A successful Toronto Dollar system signifies Toronto internationally as an innovative and forward looking city, a city of many communities, a city that connects its citizens to one another.
How does it work? Community minded citizens can exchange their Canadian dollars for an
equal amount of Toronto Dollars. One Toronto Dollar is worth one Canadian dollar and can be spent at participating businesses. These businesses will be given the opportunity to exchange their surplus Toronto Dollars for Canadian dollars although it is in their interest to spend them within the community and with other businesses in the area. If they choose to cash in their Toronto Dollars, they will donate 10% for community projects such as employment creation and care for those most in need. Communities are supported in this way at no cost to the consumer.

Here is an example: Future Bakery in the St. Lawrence Market and Frida Crafts on Front Street will take Toronto Dollars. They receive fifty Toronto Dollars from Joan and fifty from Lee. Both businesses now have choices. They can spend their Toronto Dollars at other participating businesses or within the community or cash them in and make a 10% donation for job creation. And how did Joan and Lee get Toronto Dollars in the first place? Joan exchanged fifty Canadian
dollars and received fifty Toronto Dollars. She lost no money and her action supported two local businesses. She also helped to create local work. It was Joans way to transform her concern for unemployed people into action. People may also choose to buy and sell goods and services from one another using Toronto Dollars.

There is lots of work to do in our community and unemployed people who want to work, but often money is the problem. Toronto Dollars can help. For example, Lee got her Toronto Dollars after she put up an advertisement at the market and in local papers indicating that she would sell homemade cookies for Toronto Dollars. And some people may want to donate their Toronto
Dollars to ST LAWRENCE WORKS to encourage this type of barter since they can receive a charitable receipt for the donation. Joan and Lee share a vision of Toronto Dollars as the money that will prove the power of community. Like using the blue bins to recycle, using Toronto Dollars may feel unfamiliar at first. But as its benefits become clear, Toronto Dollars can become part of our way of life. Small part time Toronto Dollar jobs, such as window cleaning, bicycle repairing and home help are sound approaches to tackling problems of poverty. And in the long term, as local businesses and people keep working in partnership, our social and economic well
being will increase.

The widespread use of Toronto Dollars will not only make neighbourhoods safer and more lively but will help to create a paradigm shift from fear of scarcity to a more caring
society. The Toronto Dollar is a way of hope.

How do I participate?
Participation is as simple as donating Canadian dollars and receiving Toronto Dollars. Toronto Dollars can also be earned and spent through buying and selling goods and services. Participants willing to accept Toronto Dollars can advertise on bulletin boards, in newsletters and
elsewhere. Both The Toronto Voice (416-927-0150) and the St. Lawrence Neighbourhood Community Bulletin (416-368-3071) will carry a Toronto Dollar advertising column and will accept part of their payment in Toronto Dollars.