Hunter LETS

 

 
Hunter LETS - Local Exchange Trading System
H
UNTER
LOCAL ENERGY TRADING SYSTEM
Trade locally and be prosperous!

About HunterLETS

 

The Fundamentals of a LETSystem
A LETSystem is a trading network supported by its own internal currency. It is self-regulating and allows its users to manage their account balance within the boundaries of the network.

LETSystems are community based non-profit trading systems that enable members to exchange goods and services using little or no cash. It is a method of trading, which depends on skills and time instead of money, exchanging a unit of local currency (Molly), not as an alternative to conventional money but to compliment the current system of trade.

LETSystems do not issue any currency, each person creates their own.

The currency only exists as numbers in accounts, moving from account to account. The recording of these transactions is done using a computer. This is very much like having a conventional cheque book account.

Each member holds and account in a "central office" where transactions are recorded. trading is done with cheques and multilist transaction sheets. All accounts begin at zero. For one account to move up, another account must move down. So at any one time approximately half the members will have positive balances and the other half negative.

The sum of negative balances and positive balances = 0.

For example:

Member Service Spend Earn Balance
Angela Haircut
Lawn Mowing
Sewing
20
40


10
-20
-60
-50
John Lawn Mowing 0 40 40
Jo Ann Sewing
Haircut
10 20 -10
 10

Notice that the system is always balanced at zero: -50+40+10=0

Negative Balances are an essential feature of the system, so that they are not to be viewed as bad or wrong (ie. debts). Negative balances simply mean members have received more goods and services than they have given out.

You can buy something with your first trade. If you wait to earn before you spend, you could find it slower to start trading. If everybody had to wait to earn before they could spend, nobody would get started!

A commitment or negative balance, represents a willingness to consider supplying goods or services to one or more account-holders at some future date.

In a healthy system, account balances bob up and down, sometimes having a balance in credit and sometimes in commitment. It makes no difference whether you have a positivie or negative balance.

Turnover is the main issue.
The most sucessful members are those with a high turnover because that means that the system is working for them.

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Membership Entitlements

The Directory
Each six months a "Directory" is produced listing all the members' skills, goods and services. When you require something, you simply contact the other member and ask if they are able to provide a service you require. If they are then you negotiate a price. To update your listings please contact the 'office'.

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The Newsletter
The Newsletter contains the latest information concerning membership, members meetings, events, changes to member listings and telephone numbers, advertisements, articles, items of interest, LETS good news, stories etc. Articles from members about LETS are most welcome.

This is produced every three months and placing an advertisement is FREE. Notices should be in writing and sent/faxed to the 'office'. If you have items for sale ie. furniture, bicycle etc. these would be listed as an advertisement in the Newsletter. Only skills and services are listed in the Directory.

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Chequebook
Mollys are transferred from one account to another by means of a cheque or multilist sheet. The payer alone can authorise the transfer of Mollys from their account to that of another member. The only exception is fees and charges applied to your account by the LETS system.

It is the responsibility of the payee to send cheques to the 'Office' as soon as possible for processing. Cheques received from trades done with NON financial or inactive members will be dishonoured and returned to the payee.

It is the responsibility of members to check the current status of traders: ie. a listing in a current Directory. Chequebooks are provided free of charge from the 'office'.

Please ensure that cheques are filled out correctly with a date and signature included. Pay attention to the correct placement of "buyer" and "seller" as cheques with details transposed can create problems for the person entering transactions and cause account balance errors.

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Statements and Service Charges
Trading statements are issued quarterly and a service charge deducted. It is by applying a service charge that we are able to pay our office and administration personnel. Please check your statement and advise the 'office' if you have any queries.

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The Working Group
LETSystems are administered by some of the members for the benefit of all. The Hunter LETS Working Group makes policy decisions and is responsible for the day to day running of the system. Members meetings are held every three months with prior notice being given in the Newsletter. Members are welcome to attend all the meetings and you are encouraged to share any ideas and suggestions.

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The 'Office'
HunterLETS does not operate from a shop front or business office as some LETSystems do. PO Box 471, Maitland, NSW 2320 is our official address, and the day to day administration work is carried out from the homes/offices of the working group members. It is in this way that we keep the overheads of HunterLETS minimal.

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Membership and Renewal Fees
Since LETS is not for profit, charges are kept to a minimum- a $10 joining fee opens and account and covers the first year's mailings, followed by a $5+5 Molly annual renewal fee. (Fees subject to inflationary changes).

All members renewal fees are due annually on 1st June.

Your membership will become "inactive" if you fail to renew by this date and you will not be allowed to ttrade with active members. Any cheques written or received by you will be dishonoured by the LETSystem. Annual renewal fees are charged to cover such things as postage, paper, telephones, printing and photocopying etc.

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Dormancy
If you are going to be out of the area for a period of time, and you do not wish to receive newsletters or directories, please notify the 'office'in writing before you leave. If your membership has lapsed you may renew it at any time within two years and retain your original balance. After two years your balance will be absorbed by the LETSystem and upon rejoining, your account will start at zero unless prior permission has been sought from
HunterLETS.

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