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The Toronto Dollar
- It works like this: First, businesses agree to accept Toronto Dollars on a
dollar-for-dollar basis. Then, as residents, local businesses, community organisations and visitors spend
their Toronto Dollars with each other, they generate business in the neighbourhood and get the goods
and services they want as well as helping 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.
- 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 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% 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.
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 currency also has a printed expiry date which is two years away from the date that the currency has been printed. People with money that is close to expiring can redeem the notes for other Toronto Dollars that have a much later expiry date.
You can find the Toronto Dollar on the Web at http://www.web.net/~tordoll/
Source _ News release from Toronto $Dollar
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Creating work with local currency
from The Jobs Letter No.93 / 25 January 1998
In the Canadian city of Toronto last month, mayor Mel Lastman, launched a new local currency, the Toronto Dollar, which employment activists hope will be a new and important tool in the fight for local jobs. At the launch, the mayor exchanged his Canadian federal dollars for the local Toronto Dollars ... and spent them with the participating local businesses.
The Toronto Dollar is community paper money, backed and used like regular money, except it is more valuable for community-building and local jobs. The new currency has been introduced by Toronto Dollar Community Projects Inc, a not for profit community group. It is run and staffed by volunteers and has been joined by over 50 cooperating neighbourhood businesses, as well as community groups, charitable organizations, churches and individuals.
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