Local/Complimentary Currency  

Angela Palermo

There are a number of local currencies operating in North America and elsewhere in the world.  Many of these currencies have begun in cities/towns that have experienced depressed economic conditions. Local/complimentary currencies give people with few economic means (whether unemployed or not) the opportunity to purchase necessary goods and services.  Many people involved in the Peak Oil “movement” think that local currencies may help in the “relocalization” effort.   

I spoke with Steve Burke, President of Ithaca Hours.  Hours are the complimentary currency system in Ithaca, New York.  Steve was very helpful and patiently answered my many questions.   

Ithaca Hours, North America ’s first modern local currency, began in 1991.  It was started by local political progressives who wanted to make positive change in their community.  At that time, there was a serious problem with unemployment and underemployment in the area.  Many people were living in poverty.  Initially, the organizing group (about a dozen people) began a barter/trading system which soon “evolved” into a currency system.   

The Ithaca currency is called Hours because the system’s founders decided that one unit of their currency should represent one hour of work.  At that time (early 1990’s), the average hourly wage in the area was approximately $10.  Thus, each Hour represents $10 (or one hour of labor).   

In addition to helping poor folks, the organizers were seeking to keep money/wealth in the local Ithaca community (instead of giving it to large corporations).  They were successful in involving a few important local businesses at the start.  Both the local food coop and credit union became part of the Ithaca Hours system.  Gradually, other local businesses began to accept Hours as payment.   

In general, the local business community has been very supportive of Ithaca Hours.  Business involvement has continued to grow over the years.  Even the local Chamber of Commerce is a vocal supporter.  The Chamber appreciates the increased press coverage that the Hours program has generated for the area.  There has been no resistance to the Hours at any level of government.   

To join Ithaca Hours requires only a $10 membership fee, which is sometimes waived (not sure of the circumstances of this fee waiving).  The membership fee includes a listing in the Hours Directory and two complimentary Hours.  Some businesses have even agreed to pay their employees a certain percentage of their paychecks in Hours, if desired.  Some businesses restrict the percentage of Hours that can be used for purchases, since they have to pay their vendors/suppliers in dollars.   

Ithaca Hours has approximately 500-600 members at present with another 500 or so folks who sometimes use Hours for their purchases.  The organization is always eager to expand its membership because, as Steve Burke put it, “money is still a problem” in the area.   

Ithaca Hours does not endorse political candidates, despite the progressive leanings of its founders.  The organization wants to be inclusive of all political persuasions.  They believe that “keeping money in the community is something almost everyone can agree on.”  Their top priority is involving people in Ithaca Hours, not rancorous political debates.   

For further information, visit the Ithaca Hours website:  ithacahours.org  

Another longstanding local currency system is Calgary Dollars (Calgary, Canada).  For further information on Calgary Dollars, visit their website: www.calgarydollars.ca