Proposal for a new article II(E)(8) in the Project Development document:

Together Common Good Bank communities can replace their official currency deposits with mutual credit, up to the amount of their CGB stock, by purchasing stable assets that serve the greater good -- to be phased out when all money is created by CGB Communities.

Purpose

This feature expedites evolution toward a society that benefits everyone. CGB Communities will acquire corporations and other means of production and restructure them for sustainability and dedication to the common good. Net profits from these acquired companies will join the bank’s profits in the community fund (and compensate for any shortfall in the bank's profits), to be granted to nonprofits and simultaneously to be used to acquire additional assets (as in E(7) above).

Security

Conventional banks make speculative investments by buying stock in various companies in order to maximize profit. CGB communities will not buy stock except when acquiring a controlling interest in the company (either by buying it outright or, in the case of a publicly traded company, by buying more than half the stock). Having complete control over these companies, in service to the greater good, will make the investments more secure than typical speculative investments in stock.

How

Corporately, CGB communities will give the individual members mutual credit in exchange for their official currency deposits. In effect, this mutual credit is backed by the value of the assets acquired.

Why Limited to the Amount of Stock?

Reducing the official currency deposits results in a lower fractional reserve limit on lending (that is, the bank cannot lend as much). This is not a problem as long as members buy more CGB stock, since stock allows us to create as much money as we need. Replacing one deposit dollar with CGB stock lets us replace a second deposit dollar with mutual credit (and a corresponding asset).

By limiting the replacement of official currency to the value of CGB stock, we ultimately divide the available resources equally: half for lending and half for owning. In effect, we disconnect from the official currency system by replacing our deposits with CGB stock, mutual credit, and means of production. We all become owners.

Example Implications

Suppose, one year after opening, CGB has 10,000 depositors each with $5,000 on deposit (on average), 80% of the deposits are held as stock, CGB maintains a constant 5% trade surplus, and money cycles (from loan to expenditure to deposit to loan) once a week, on average. Before replacing official currency with mutual credit, the bank has $50 million on deposit.

A week later the bank has $51.5 million on deposit and the members together own outright $41 million worth of income-producing assets, which will bring in, at a conservative estimate, at least $5 million of income annually (a 10% return on the community's deposits, on top of the bank's normal returns).
After a year, the benefits have more than quadrupled. The bank (surprisingly still with just 10,000 depositors) now has $221 million on deposit and the members own $177 worth of businesses.