Healthy Money Healthy Planet - library.uniteddiversity.coop

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The bills are accepted on a par with the Canadian dollar by the local Island Savings
Credit Union, the Bank of Montreal and the Canadian Imperial Bank of Commerce
(CIBC). To achieve this, the fund’s committee arranged for a reserve fund of Canadian
dollars to be deposited with the credit union and each bank, and asked them to include
Salt Spring dollars with Canadian dollars when someone comes in to make a deposit. In
such an instance the teller debits the reserve account for the Salt Spring dollar amount
and credits the depositor’s account with Canadian dollars. So the Salt Spring currency is
redeemable and depositable at all three financial institutions on the island, and it can
also be purchased at the Island Savings Credit Union in $$50 bundles. Additionally, the
Chamber of Commerce issues the notes from its building and the scheme sells them
through its website. 40
For a time, an ATM machine was set up on the island to dispense the notes, but it
was removed when it was discovered that only tourists used the machine. Although the
system was working perfectly, all the locals were getting their Salt Spring dollars with no
surcharge from a number of sources, and the cost of the ATM did not cover the money
made from it.
As envisaged in its mission statement, t
he scheme is now starting to raise significant funds for the community, since all the bills
that go into collections and off island as souvenirs are unlikely to be redeemed. Eight
months after the scheme was established, a trust fund of CAN$20,000 had been built up
for community use. The disbursement committee of nine people was publicly announced
in the project’s local paper and on its website. However, things have since changed, in
that instead of giving away funds the Salt Spring IMF now retains assets by investing in
the community, thereby ensuring that dollars sold continue to be backed 100 per cent.
Investments can include such things as loans for affordable housing, money to purchase
vehicles for a car co­operative, or land that can be leased for organic farming. 41
By November 2003 the Salt Spring IMF had decided to ignore the original expiry
dates, promising to continue to honour all of the older bills. They were able to do this
because they had a recorded history of how many bills had been redeemed. In addition,
they issued new $$1, $$2 and $$5 bills without expiry dates.
Also in 2003, the Salt Spring IMF underwent an independent audit and came out
clean. The results of this are posted on their website. 42
Additionally, the scheme received the green light from the Bank of Canada and the