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In New Zealand, ITEX was able to lend one of its best members NZ$10,000 for the
extension of a house, money that was, of course, interest­free, although the
member’s car was used as security. When the house extension was complete, the
member was able to bring in new clients and soon managed to repay her loan. The
construction company that worked on her extension then needed to spend its
money, so ITEX brought a building supply company and a crane hire firm into the
circle.
Another member bought coffee for trade dollars and sold it for cash, thus converting
trade dollars to national currency every day. Members could also spend their trade
dollars at the local radio station on advertising, a move that brought in cash
business to their companies.
ITEX is still operating today. In 2002, the company’s website said that it
represented:
… over 25,000 businesses in over 80 offices in the United States and Canada, and foreign
affiliates in 15 other countries; totalling over 100,000 trading partners. ITEX generated over
US$200 million in trade transactions per year in 2001, with a growth rate of approximately
14 per cent per year. ITEX has grown enormously since its inception in 1982 and
throughout that time has continually maintained its status of the world’s leading trade and
barter company. 15
Bartercard
Bartercard was established in Queensland, Australia, in 1991, moving to New
Zealand in the same year.
When I first discovered what was happening with Bartercard in New Zealand I was
astonished. Here was a group working quietly to revolutionise the way we create
money and support locally owned businesses, and nobody had really noticed. In
1998 I interviewed Roy Netzer, the then Manager of Bartercard in Christchurch, and
at the time this branch carried out up to NZ$1.5 million worth of trade per month.
By 2003 the figure had risen to an impressive NZ$3 million per month. 16
How it Works
As with ITEX, Bartercard charges a commission for seller and buyer, made up of the
national currency and trade dollars. Originally, the commission was 5 per cent in the
national currency and 1 per cent in trade dollars, although the national currency
proportion was later increased to 5.5 per cent. And as with ITEX, Bartercard makes
interest­free loans as long as they are secured by the client in some way – cars,
houses or businesses are typically used as collateral. Trade days are held every six
months, and major fairs are organised every two years.