83. For Local Corporations

For Local Corporations
Bob Komives
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...

I like local banks because I think they promote local economic development and robust, national economic diversity. I like local corporations for the same reasons, and one more. While money issued by local banks is national currency whose value comes from the national economy, the stock issued by a local corporation gets much of its value from the value of the corporation that issued it.

In the USA there is waning tradition favoring local banks, however there is little tradition that would restrict corporations to local operation. Now that local businesses buy and sell in a marketplace that is every day more global, such a tradition is unlikely to evolve. Nevertheless, when a community does spawn a local corporation the corporate stock is a share of local wealth (albeit restricted to the assets of the corporation). The value of the stock rises and falls with local corporate value.

To the extent that a corporation participates in and reflects the local economy, its stock is a form of local currency. It is a legitimate medium of exchange whose value is determined by local economic development. By encouraging the creation and permanence of successful local corporations that issue common stock a community indirectly mints local currency. 

:: Bob Komives, Fort Collins © 2006 :: Plum Local IV :: 83.  For Local Corporations  ::
With attribution these words may be freely shared, but permission
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