Join the Common Bank!

[Arizona Nova]

As a Charter Member of the Common Bank, I feel obliged to repost this recruitment ad, so here it is:

The Common Bank: Growing Wealth, Sharing Prosperity

Hello, I'm Vryce Kikkoman, Chairman of the Board of the Common Bank. I'm here to tell you a little about our organization, in hopes that we may soon welcome you as a Member. The Common Bank is designed to streamline the process of trade between nations by providing a universally acceptable medium of exchange. To accomplish this, the Bank has established base of prominent Member nations which are commercially and/or industrially active on the international stage. These members have incorporated the Common Credit into their banking system, making it available to all citizens who might otherwise be forced to rely on non-standardized exchange currencies or bartering for business conducted across state borders. To better serve its clients, and to make the services of the Bank more widely available, the Board has elected to conduct a membership drive. All well-established states with a stable economy are encouraged to become Members of the Bank.

With its staff of legal representatives from Member and Host nations, the Common Bank makes trade easier for governments, companies, and countless common citizens like yours. The Common Bank takes the risk and guesswork out of international commerce by providing expert service and support to its clients. The Common Bank's services have enhanced the viability and productivity of Members' import and export companies and boosted economies with the resulting boost in consumer spending. The Common Bank also offers low, fixed-rate loans to countries and companies facing unexpected expenses and deficits. Taking advantage of these and many other services has never been easier!

Free trade policies are ideal for Membership: the Common Bank makes your economic specialization more efficient by reducing import and export hassles. Protectionist mechanisms keeping your local businesses safe? The Common Bank will work with your government to make sure that all transactions are properly inspected, regulated, and taxed; and that the dividends go to your state instead of into the pockets of shady accountants. Though it is managed by the government of Xanthal, the Common Bank does not engage in political favoritism: your country's political, social, and technological characteristics will not be considered in deciding membership. Best of all, when you become a Member of the Common Bank, you can forget about infrastructure concerns: you decide where the Bank builds its branches to best serve your government and people, we'll pay market price for the land we need and cover all construction and maintenance costs!

Not up for full Membership? You needn't be left behind! The Bank also services Host nations who wish to provide a source of Common Credits for their people but lack the financial centralization, legal system, or commitment necessary to become Members by establishing branch offices accessible to institutions and individuals within that nation to provide needed currencies and offer the Bank's other financial services, including international market investing and insured payment plans; many of the same benefits enjoyed by Members!

Whether you choose Membership, with preferred rates, the full benefits of the Common Bank with branches throughout your country, and a say in the Bank's future development; or simply agree to Host exchange centers and give your citizens an edge in the international market, the Common Bank and the Common Credit will work for you, your people, and your country. Sign up today and let us help you get the most out of your trade program!

Registering is easy: simply read the Charter of the Common Bank below and inform the Board of your desire to become a Member or Host nation by posting here. We'll promptly process your request and, if you're approved, your government and people could be enjoying the benefits in less than a year. Don't let this opportunity pass you by. Join the Common Bank: Growing Wealth, Sharing Prosperity.

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Charter of the Common Bank

Article 1. Preamble
This document and all its contents shall be known as the Charter of the Common Bank, hereafter Charter. Its commission creates the Common Bank, hereafter Bank, for which the terms of this Charter shall be the supreme law.

Article 2. Mission
The Mission of the Bank is to provide a universally-acceptable medium of exchange to people, companies, and governments of all nationalities. The Bank shall also provide any other services the Board may commission to facilitate efficient, reliable, and secure transactions across national and state borders for its clients.

Article 3. Organization
Section 1.
The Bank shall be owned by the Socialist Republic of Xanthal, as represented by the sovereign government thereof.
Section 2.
The Bank shall be led by a Board of nine people, appointed by the Xanthalian Triumvirate. The Board shall make decisions with no fewer than five of its members in favor.
Section 3.
Monetary compensation of Bank employees shall be dispensed by the Socialist Republic of Xanthal in Credits.
Section 4.
The Bank shall operate under the legal jurisdiction of the Socialist Republic of Xanthal, and shall be subject to the judgments of the High Court of Xanthal.

Article 4. Currency
Section 1.
The Bank shall mint Common Credits, hereafter Credits, for distribution to Members and other clients.
Section 2.
The Bank shall redeem at market value any foreign currency with a reasonable level of acceptability, as determined by the Board, for Credits.
Section 3.
The value of the Credit shall be set by the Board.
Section 4.
The Bank shall charge a premium no more than 10% on purchases of Credits.
Section 5.
The Bank shall retain the right to destroy currency in its possession with the approval of the Board and the Xanthalian Council.

Article 5. Members
Section 1.
Any sovereign party agreeing to be legally bound by the provisions of this Charter through legal and official approval by that party’s legal representative(s) that informs the Board of its agreement is a Member of the Bank unless rejected by the Board.
Section 2.
Each Member must maintain in Credits a stock the total value of which is no less than one percent of its domestic currency reserves or no less than ninety percent of its previous year’s trade deficit, whichever amount is greater.
Section 3.
Each Member must allow the Bank to hold that Member’s fiat currency, to use that currency for purchasing items from sellers within that Member’s jurisdiction, and to destroy units of that currency in the Bank’s possession.
Section 4.
Each Member must make Credits available, at a premium not exceeding 10%, to any person within its jurisdiction in exchange for its fiat currency.
Section 5.
Each Member must make its fiat currency available, at market value, to any person within its jurisdiction in exchange for Credits.

Article 6. Amendments
The Board may propose Amendments to this Charter, which shall take effect when approved by two thirds of Members.

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Join these Members, already enjoying the full benefits of the Common Bank!
-Arizona Nova
-CoreWorlds
-Draconis Nightcrawlis
-Maraque
-Neo Zeta
-New Dornalia
-Northrop-Grumman
-Pschycotic Pschycos
-The Humankind Abh
-Yukatania

Become a Host state and enjoy many of the benefits of Membership without the commitment!
-Alcona and Hubris

[The Mindset]

The Mindset rejects this proposal due to its socialist foundations. Stability through socialism is not possible. (Not to mention that if adopted, the socialists of Xanthal effectively own 10% of your economy via "premiums" on purchasing their currency.)

[Arenumberg]

You already owe me enough money AN.

[Slipknaut]

Why do you think I have an "account" at the bank then? Loans anyone?

I don't see how Xanthal will have 10% of the entire economy. The only thing I see remotely resembling that statement is Article 5, Section 2: "Each Member must maintain in Credits a stock the total value of which is no less than one percent of its domestic currency reserves or no less than ninety percent of its previous year’s trade deficit, whichever amount is greater." Thats 1% of the previous year's trade deficit will end up with the Common Bank.

[The Mindset]

Section 4.
The Bank shall charge a premium no more than 10% on purchases of Credits.

If you switch your economy to this common credit, Xanthal can charge you 10% of your entire economy to do so.

[Arizona Nova]

...You don't switch your currency. The point is to keep your currency; the Bank acts as an intermediary between foreign currencies. Like I have my currency, the siliar, and you have your currency, the avama. I'm assuming spending our respective currencies in each other's countries would be messy, so the Common Bank acts as an intermediary for us both with its Credit.

[The Mindset]

...what's the point in that? You could take Sillar to any Mindsetti bank and so long as your economy is strong it'd purchase them for equivalent Avama. This bank is unnecessary complication.

[Balrogga]

It is also unwise to allow enemies access to your economy, especially those we are currently at war with.

[Kanuckistan]

I believe the main advantage is in providing a medium of financial exchange between nations lacking normalised relations - hell, chances are the average Mindsettti/Kanuckistani/etc. bank hasn't heard of half the nations out there, much less maintains an accurate and up to date valuation of their currency.


The price, however, would for a government my size run, at the least, into the tens of billions of USD in Common Credit premiums alone, and so is no where worth the benefit.


There doesn't appear to be anything stopping them from setting up shop in Kanuckistan if they want, but they won't be taxing the government.



(Very nicely written, by the way)

[Flaming Souls]

While I see the point of the Common Bank, and agree with the goal of making currency easier in the multitude of nations in the Black Sea of Space, I believe I have a good answer to the problem.

Assuming that everyone uses some sort of electronic currency system, be they cards, computer chips in the finger, etc. Why not just have a simple system linked to a centralized ESUS database that would do the conversion of currency? Basically a card/biometric scan reader that is linked. I think that would solve the problem, and make things much easier for all. Hell, I will even foot the bill to make the devices.