Does the Federation have/use banks?

[Silversmok3]

I get the idea that Star Trek society has money,but a) doesn't need it for basic necessities or raw material and b)doesn't use a fiat system with an official currency that is struck and backed by the state.

So,how does one get 'cash' in the Federation?I ask this because latinum is their precious metal that's used as gold is on Earth,so there has to be *some* bank that converts Federation credits to Latinum,or vice versa.

Either that,or Starfleet hides an ATM on its ships and has dilligently kept it secret for centuries :-)

 

[Jono]

We know there is a bank of Bolius.

 

[Jefferies]

I know the notion of a credit system is popular with many fans, but I personally don't like it and it doesn't fit with what we have heard about the late 24th century economy. Federation citizens do not have bank accounts and do not accumulate personal wealth, be it in credits, latinum or otherwise.

Having said that the Federation will probably have some kind of state bank that deals with the foreign currencies it trades in. This institution might also be responsible for issuing currency to citizens and Starfleet personel that have contact with foreign trade and services, like on DS9. However, I believe that such currency is handed out on a need basis rather than as a salary. This bank might also be responsible for determining the value of Federation goods and services in forgein currencies for imports and exports.

Apart from this one should keep in mind that the Federatoin has achieved almost total automation (through replicators) and automated services (through intelligent computers, holograms etc.), as well as access to near infinite sources of energy. Therefore, the provision of goods and services is close to limitless and thus anybody's needs (within reason) can be taken care of. This would mean that rated against money, most goods and services in the domestic market of the Federation would hold very little value. The only things that would hold value are the ones that can't be replicated like scientific research or those that are one of a kind like original art and entertainment and certain types of real estate and maybe personalised services like the one offered by Sisko's dad. However, I would argue that these types of valuables will be owned by the Federation as public property for the benefit of all.

 

[trekkerguy]

I know the notion of a credit system is popular with many fans, but I personally don't like it and it doesn't fit with what we have heard about the late 24th century economy. Federation citizens do not have bank accounts and do not accumulate personal wealth, be it in credits, latinum or otherwise.

Aside from the part where they do use credits and do have personal accounts.

And thought people's drive is not to "accumulate personal wealth"
but simply a fair way to exchange ones time, effort or goods for something.

For instance, it's really not realistic to think someone could just walk up to
a lot and grab a Starhopper for free.

 

[Silversmok3]

I know the notion of a credit system is popular with many fans, but I personally don't like it and it doesn't fit with what we have heard about the late 24th century economy. Federation citizens do not have bank accounts and do not accumulate personal wealth, be it in credits, latinum or otherwise.

But how can a starfleet officer deal with a monetary culture,without having money themselves?
Ill grant that the UFP proper doesn't need money on it necessities,but it will need some cash,if only to deal with cultures that do use a money-based economy.

 

[Jefferies]

^^In my post I suggested that the Federation might have a state bank that controls forgein currency and hands it out to its citizens when they come into the situation you describe. The Federation will earn forgein currency through its trade with other cultures. It can then hand out a proportion of this income when currency is needed on an individual basis.

 

[Rush Limborg]

The Bank of Bolius--which, when mentioned in DS9, sounds an awful lot like today's "Banks in Zurich" ("Who Mourns for Morn")

And Bolius, of course, is a UFP world--the home of the Bolians.

 

[Sci]

The Bank of Bolius--which, when mentioned in DS9, sounds an awful lot like today's "Banks in Zurich" ("Who Mourns for Morn")

And Bolius, of course, is a UFP world--the home of the Bolians.

The Bank of Bolias was robbed by the Orion Syndicate in "Honor Among Thieves" as well.

 

[kv1at3485]

But how can a starfleet officer deal with a monetary culture,without having money themselves?

Well educated and trained UFP citizens are not just an asset to be tapped by UFP organizations, but also by those outside the UFP. One can imagine job fairs held by, say, Ferengi corporations roving around the UFP going:

"Come work for us! See the galaxy! It's good experience! It builds character!"

UFP citizens can rest assured that if they go sign their contracts, or just go out on their own entrepreneur style, if things go badly all they need is a ticket home and they can return to their idyllic, if perhaps less interesting, life in the UFP. Really, the UFP is the ultimate social security net.

If they do well they'll return home with some cash. Perhaps it's not too useful in the UFP but it's certainly good for social kudos. ("I went out to live amongst the barbarians, survived, and did well.") Of course, these returners aren't likely to let the cash sit around. They'll put it in banks in the UFP who invest it outside the UFP.

UFP citizens who don't have their own cash can borrow from these banks on the understanding that one day they'll "go outside".

 

[Deks]

And why is there an assumption that just because a bank exists on Bolia, that it will be used to store some kind of currency to begin with?

Taking into consideration that the premise behind Federation society is that money doesn't exist and personal acquisition of wealth is not a driving factor, there is a good possibility that 'banks' would be used to store various resources used for trade with alien species or simply means of transferring resources from one individual to the other when trade is done.

Bolians for example would adapt to the same system by being members of the Federation as they'd have access to Federation technology and thus wouldn't need money.

Only species that aren't part of the Federation would essentially be excusable in having their own versions of currencies and SF personnel would likely describe 'credits' as resources which are used for trade with species not part of the Federation.
Quark for example perceives gold pressed latinum as 'money'.
To the Federation it's only resource ... and of no particular value inside Federation territory.
But since Quark had his own bar and everything, and because he dealt with species that don't use money along with those that do, he primarily asked for gold pressed latinum for his services because Ferengy aren't part of the Federation and he was maintaining ties with other Ferengy in terms of purchasing various things.

When will people realize that terms used today are likely being used in Trek to describe something else?

 

[JNG]

The Bank of Bolius--which, when mentioned in DS9, sounds an awful lot like today's "Banks in Zurich" ("Who Mourns for Morn")

And Bolius, of course, is a UFP world--the home of the Bolians.

I believe the Bolians are from Bolarus IX, and I'm not entirely certain that it was ever confirmed that either 1. Bolarus IX is a Federation member or 2. the Bank of Bolias is on it. It may have been, but I can't find any such reference offhand and I wouldn't want to assume too much based on a partially similar sound for the words.

I don't know how an economic system without currency would have a bank, so if it all possible, I would tend to interpret the references in such a way as to keep that bank outside the Federation.

 

[Star Wolf]

^^In my post I suggested that the Federation might have a state bank that controls forgein currency and hands it out to its citizens when they come into the situation you describe. The Federation will earn forgein currency through its trade with other cultures. It can then hand out a proportion of this income when currency is needed on an individual basis.

But who is to define a "need". Suppose you are Barclay and wish to holo fantasy with Troi. Now that is unexceptionable to the Federation types but Ferengi merchants will supply that need. Does Barclay have to lie to the latinum disbursement officer to fullfill his need?

 

[Timo]

Well, if he's planning on committing an outright crime, of course he is going to involve himself in lies. And of course he shouldn't be allowed to have any currency if he's such a dirtbag. So the system would seem to work fine indeed in this particular case.

I see nothing odd in the idea that Starfleeters or other special individuals would use currency in their interactions with foreigners but not in their own personal lives. It's no different from them using the universal translator with foreigners but not with their families, or guns against the Jem'Hadar but not against their coworkers. Currency is just a tool, to be wielded in the intended application only, not on every occasion.

Timo Saloniemi