Credit: dan taylor
‘No State shall …..coin money’, says Section 10 of Article 1 of the US Constitution, banning in a simple statement the production of private coinages and ensuring that the existing coins signify true value, perhaps leaving printed notes to signify something more ephemeral.
In many countries local currencies have been accepted practice at times when communities have striven to bolster local trade. In America communities can legally produce paper currency providing it does not resemble federally issued money.
Historically scrip has been used for the same purpose: not as legal tender, but a form of credit. Typically, a few businesses get together and print a new currency which customers can then buy at a discount.
Upstate New York has had a local currency since Ithaca Hours was created in 1991. It was named ‘Hours’ as a reminder that money represents someone’s time. Today it has over $100,000 in circulation today and 900 participating traders, including some local employers and employees who pay and receive the currency as part of their wages.
Plenty, a North Carolina currency was established in 2002. A local bank now exchanges it $9 for $10 of Plenty. It has $1, $5, $20 and $50 denominations.
The most established of local currencies are BerkShares in Massachusetts. In business since 2006 they now circulate some £2.3 million dollars. To spend BerkShares a customer visits one of 12 banks and pays $95 for $100 worth of BerkShares, these can be spent in 370 local businesses.
In Pittsburgh N.C. Detroit Cheers is the newly reinstated local currency scrip. $4,500 worth of Detroit Cheers are circulating today, backed by three businessmen: Belanger, Tharp and Linardos who each put up $1,500. More than 25 businesses accept the scrip.
Struggling in a climate of high local unemployment the 2,400 people of North Fork, CA, now have their own currency: North Fork Shares. Each share is worth $12 and is available in $12, $6 and $3 denominations. In Traverse City, Michigan, over 100 businesses accept a local currency known as Bay Backs.
Credit: Stepheye
Lewes, in East Sussex, UK has created the Lewes pound or £31,000 and has over 130 businesses accepting them. Germany, meanwhile, is estimated to have 16 regional currencies, such as the Urstromtaler accepted at over 200 businesses in the City of Magdeburg.
Each of these currencies has historical precedents. Local currencies have been used to restore regional economic confidence, encourage people to buy locally and keep money circulating within the community.
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