Demurrage
From LawGuru Wiki
Demurrage (from demur, Fr. demeurer, to delay, derived from Lat. mora),
1. In the law of merchant shipping, is the sum payable by the freighter to the shipowner for detention of the vessel in port beyond the number of days allowed for the purpose of loading or unloading (see Affreightment: under Charter-parties).
2. In the railway law, is the charge on detention of trucks (or rolling stock), either to the shipper for holding the car (laden or not), or to the connecting railroad(s) while the car is empty and returning to the home road (in either case, as a way to encourage speedy unloading and return of empties to improve utilization of rolling stock);
3. In banking, is the charge per ounce made by the Bank of England in exchanging coin or notes for bullion.
4. In complementary currencies' field, is used to define the regular devaluation of a currency, like negative interest on a deposit. The term was used by Silvio Gesell. It has a number of advantages above interest: While interest on deposits lead to discount the future and to place immediate gains ahead of long-term concerns, demurrage creates an incentive to invest in longer-term sustainable growth. Further does it increase employment by stimulating the circulation of a currency.
References
- Transaction Net A "Green" Convertible Currency, Bernard A. Lietaer
