Chamber of Commerce Certificate Money FAQs

FAQs

What Is Certificate Money?

Like a dollar bill, Certificate Money is owned by whoever has possession. Theoretically, Certificate Money might even be considered more valuable than a dollar bill, since Certificate Money cannot be printed unless someone physically deposits something inherently valuable with an independent 3rd party (chamber of commerce or trustee), to guarantee the certificate. This validates the certificate and makes it redeemable for actual physical value, and therefore valuable. The deposit can be gold, goods, car title, or another valuable asset.

Certificate money is therefore a “reserve currency.” (Notably, this term is often misused, even by trained economists, to suggest the mere storage of money rather than the value of money). By contrast, the dollar (Federal Reserve Note) is primarily a fiat currency, because of the relatively weak restrictions (and self-feeding paper trail) on the number of dollars that can be printed (by the few men who control the Federal Reserve Bank). Therefore the Federal Reserve System lacks discipline where something valuable need not be deposited with a bank before more dollars are printed. Certificate Money is theoretically the opposite, as it is designed to be a discipline-based and value-based monetary supply.

EverydayCurrency.org plans to create a full-scale automated computer program (with detailed instruction manual) that chambers of commerce and trustees can use to implement their Certificate Money Program locally.

How Is Certificate Money Connected to Assets, Dollars, and Gold?

  • Asset - The reserve value ("exchange value") of the certificate is written on the certificate, to ensure that the certificate has value and keeps its value. The asset listed on the certificate is what was deposited with the trustee (chamber of commerce or other party) before the certificate could be printed. Whoever has possession of the certificate can bring it to the trustee in exchange for either the asset itself, or the right to own the asset. Aternatively, as the chamber of commerce you can design your program so the holder may receive gold or silver in exchange for the certificate.
  • Dollar - The dollar value is a formality required by law in certain limited instances. To ensure compliance with these laws, the trustee assigns a dollar value to the certificate on the date the certificate is printed. Afterwards, the dollar value will fluctuate daily and so the printed number may have no ultimate influence on the inherent value of the certificate.
  • Gold - If the bank is presented a certificate for a partial asset, such as 1/10 of a car, and asked to redeem it, the car owner can either buy out the certificate holder's interest with gold or silver (if you choose to go this optional route with a metal reserve), or the entire car is sold at auction. The certificate holder receives 1/10 of the sale proceeds, and the bank receives the other 9/10 of the proceeds, which it then uses to buy as much gold and silver as possible, to be assigned evenly among the remaining 9 certificates so they keep their reserve value at the bank.

You can design your program so that at any time the trustee issuing the certificate can allow the original producer of the goods to buy back his specific deposited or pledged asset(s) by depositing the precious metal quantity (gold or silver) specified on the certificate. You see, the key is that every certificate circulating in commerce is always redeemable for a specific asset, and therefore is inherently valuable at all times.

How Do I Invite My Community to Obtain and Use Certificate Money?

Producers of desirable goods need to want to participate for this program to work. The ideal producer is the organic farmer.

  1. Ask your local community about their willingness to participate in a Certificate Money Program. Notably, FDIC-insured banks are ineligible to participate due to the Federal Reserve Bank's monopoly on printing certain money.
  2. Invite your farmers and producers to deposit their goods with the chamber/trustee to receive Certificate Money printed by the chamber/trustee
  3. The community uses the Certificate Money for whatever they wish
  4. A simple online or phone verification system with the trustee allows buyers and sellers to check instantly (before a transaction is completed) the validity of any given certificate. For more detail on the verification system and how it prevents counterfeiting, click here.

Pretty much, because anything can be money, even coconuts. The Federal Reserve and the Internal Revenue Service have no prohibitions on the physical printing of local currencies, as long as (a) their value can be tracked to the US dollar, (b) the minimum denomination is worth at least $1, and (c) the design does not copy the design of the dollar. Additionally, certain banks (such as FDIC insured banks) are subject to certain federal restrictions on alternative currencies.

Printing Money

Will Certificates Raise Our Taxes or Complicate Tax Filings?

No, certificates are designed to simplify tax filings, and neither increase nor decrease any applicable taxes. Just like U.S. dollars, certificate money is a form of taxable income. And they can be processed as barters, where income is reported at the conclusion of the tax year. The program is especially useful for organic food producers because food is not subject to sales tax. Compare for yourself whether you pay more or less tax under a reserve-based system. You may very well find the answer is less taxes, as certificates have the extra advantage of limiting overpayment of taxes as local pelople obtain non-inflated assessments from their fellow consumers and producers.

Can the Original Producer Buy Back The Assets he Deposits?

Yes, unless the certificate has already been redeemed (brought back to the trustee). Therefore, producers should not convert assets into certificates unless they are prepared to transfer those assets.

With that said, the chamber/trustee issuing Certificate Money can provide producers several options to buy back their specific deposited or pledged asset(s) when still available. To do so, simply set a procedure for producers to deposit the precious metal quantity (gold, silver, or platinum) specified on the certificate. The asset on hold with the chamber/trustee will then be returned to the producer, and replaced with the precious metal the producer deposited. This way, every certificate circulating in commerce is redeemable for a specific and valuable asset, and therefore remains inherently valuable at all times.

Can the Prouducer Retain Control Of His Asset And Still Obtain A Certificate?

Yes. The producer can either print his own certificate, or the chamber can print the certificate and designate the producer as the trustee.

Why not just use gold or silver?

Please do consider using gold or silver! If our nation relied on these limited supply metals for the majority of commerce today, significant evidence suggests we'd have a much more stable economy, provided of course this shift also coincided with more people following the golden rule (treat your neighbor as you wish to be treated). History shows that some of the most oppressive regimes in history had asset-based money, so gold is no substitute for community goodwill. The lesson here is that a 'reserve' change in the monetary system will not necessarily translate to fairness in society. For more on this point, please see "Proposed Solution" in the "About" section above.

In any case, the Certificate Money Program can be designed to help local economies make the transition to gold and silver wherever an asset within the program is sold for cash and the trustee uses the extra money on deposit to buy gold and silver to cover the assets. This helps bring more gold and silver into the community.

Why Is Certificate Money Valuable?

Certificate Money is a reserve-currency, which means it is redeemable at any time for something valuable kept in trust (reserve). This keeps people accountable for the money they use, and keeps the money accountable to the people. It allows people to help guarantee payment and full performance of any transaction or contract.

How Do Trustee's Independent Registries Prevent Counterfeiting of Certificates?

With an easy and self-explanatory verification system (available online and/or by phone), buyers and sellers can know instantly (before a transaction is completed) the validity of any given certificate. The system prevents counterfeiting.

In short, by maintaining a chain of custody, the trustee keeps good records and verifies certificates.

Every certificate is assigned a unique number by the issuing trustee. And every time a certificate is about to be used, the seller simply logs on to the applicable trustee registry website (or telephone system) listed on the certificate. The system asks for the certificate number, and the buyer's last name. By this process, the certificate is verified, and as the seller reports the sale to the trustee, the certificate continues to be automatically tracked in commerce by the trustee. In the event two certificates bearing the same number are ever identified (because of a last name discrepancy), an automatic hold is placed on such certificate number, requiring the bearer of the legitimate certificate to return it to the trustee for reissuance with a new number. This method exposes fraudulent actors before they can even make a single purchase.

Are Trustees Certified, And Can a Trustee Reliably Guard A Deposit?

Different trustees are certified by different standards, and some trustees are not certified at all. Therefore, be selective when choosing a trustee. A local chamber of commerce is the ideal trustee.

Indeed, your professional trustee should deposit title to your asset in a safe place. In most circumstances it will be sufficient for your professional trustee to guard the deposit on private property. As a further safeguard, ask your trustee about available insurance in the event your asset is stolen, damaged, or lost.

You will also want your chosen trustee to maintain procedures for printing certificates and releasing deposited assets.

Is Certificate Money Designed To Replace Federal Reserve Notes?

No. Even though Certificate Money may indeed be more valuable than ordinary dollars, certain institutions like the IRS and big utility companies remain unlikely candidates to accept anything but Federal Reserve Notes until America experiences a real change in law and leadership.

With that said, history shows that reserve currencies are far more valuable than fiat currencies, and are preferred even by governments issuing fiat currencies! Many societies experienced eras where they paid taxes in goods (such as olive oil). Generally it is only when laws are passed making it an actual crime to use anything but fiat money that the population must lower its standards to fiat money. Sadly, the United States outlawed gold certificates after her vaults were depleted in order to fight war after war, thus making the certificates unredeemable. Since then, military strength and other forms of leverage have been used quite frighteningly to secure the hegemony of the fiat dollar. The irony of our current ‘security’ predicament is quite sad.

Don't we need the Federal Reserve Bank?

No. We need to invest in sound money, not just locally but at State and Federal levels too. We need to adjust our expectations so we behave ourselves in a sustainable manner with one another. The Federal Reserve Bank is like a disease in the hands of a diseased populace, and stable alternative currencies are like a natural remedy to that one disease (among many diseases).

Don't we need to have complexity in the monetary system?

No.

No.

Isn't the Federal Reserve Bank Strong and Productive?

The Federal Reserve Bank is a powerful entity, but it has manifested to be quite unsustainable as a system to meet the long-term needs of producers of natural goods and services. Indeed, the symptoms of disease that it has shown since its official inception in 1913, are beginning to become more prominent, and are infecting society in more ways than just a weakened economy.

The Federal Reserve Bank is designed to transfer wealth from a productive populace to self-described elite international banking cartels. In exchange for their wealth, individual citizens receive debt. If I understand this correctly, it is a kind of systemic fraud in the absence of debt forgiveness. See e.g., Creature from Jeykll Island, by G. Edward Griffin; Money and the Blame Game, by Greg Glaser.

Don't we need to have “faith in the system” in order for it to work?

Not really. Only for the current fiat money system has “faith in the system” proved to be a required element. By contrast, a reserve-based monetary system should not require faith to succeed, but rather evidence and community goodwill. In a reserve system, the evidence is the valuable item on deposit with the trustee. Simple.