the dominant national or multinational currency systems (usually referred to as national or fiat money). Alternative currencies can be created by an individual, corporation, or organization, they can be created by national, state, or local governments, or they can arise naturally as people begin to use a certain commodity as a currency. Mutual credit is a form of alternative currency and thus any form of lending that does not go through the banking system can be considered a form of alternative currency. When used in combination with or when designed to work in combination with national or multinational fiat currencies they can be referred to as complementary currency. Most complementary currencies are also local currencies and are limited to a certain region. Barters are another type of alternative currency. These are actually exchange systems, which only trade items; thus without the use of any currency whatsoever. Finally, local exchange trading system is a special form of barter which trades points for items. One point stands for one man-hour of work and often there are issues related to paying tax. Some alternative currencies are considered tax-exempt, but most of them are fully taxed as if they were national currency, with the caveat that the tax must be paid in the national currency. The legality and tax status of alternative currencies varies widely from country to country as some systems in use in some countries would be illegal in others. Labor notes and local exchange trading systems Labour notes are an alternative currency based on exchange of hours of labor. Josiah Warren is widely regarded as the first American anarchist. Josiah Warren termed the phrase "Cost the limit of price", with "cost" here referring not to monetary price paid but the labor one exerted to produce an item. Therefore, "[h]e proposed a system to pay people with labour notes indicating how many hours of work they did. They could exchange the notes at local time stores for goods that took the same amount of time to produce". He put his theories to the test by establishing an experimental "labor for labor store" called the Cincinnati Time Store where trade was facilitated by notes backed by a promise to perform labor. The store proved successful and operated for three years after which it was closed so that Warren could pursue establishing colonies based on mutualism. These included Utopia and Modern Times. A local