You are living in a city that prints its own money. A bunch of us realized that there weren't enough dollars circulating here to let us trade our goods and services as much as we wanted. We saw that we weren't getting paid enough to keep up with prices. So we started the Ithaca Time Zone, where you can earn Ithaca HOURS, worth $10.00 each.
Since 1991 we've issued over $46,000 of local currency, to over 850 participants. Thousands of purchases and many new friendships have been made with our money, and hundreds of thousands of dollars of trading have been added to Ithaca's economy.
We also printed our own money because we watched Federal dollars come to town, shake a few hands, then leave to buy rainforest lumber and fight wars. Ithaca's HOURS, by contrast, stay in this region to help us hire each other. While dollars make us increasingly dependent on multinational corporations and bankers, HOURS reinforce community trading and expand commerce which is more accountable to our concerns for ecology and social justice.
Here's how it works: the Ithaca HOUR is Ithaca's $10.00 bill, because ten dollars per hour is the average of wages/salaries in Tompkins County. These HOUR notes, in four denominations, buy plumbing, carpentry, electrical work, roofing, nursing, chiropractic care, child care, car and bike repair, food, eyeglasses, firewood, gifts, and thousands of other goods and services. Our Alternatives credit union accepts them for mortgage and loan fees. People pay rent with HOURS. Several of the best restaurants in town take them, as do three movie theaters, a bowling alley, two large locally-owned grocery stores, and thirty farmer's market vendors.
Ithaca's new HOURly minimum wage lifts the lowest paid up without knocking down higher wages. For example, some of Ithaca's organic farmers are paying the highest farm labor wages in the Western Hemisphere: $10.00 of spending power per HOUR. These farmers benefit by the HOUR's loyalty to local agriculture. On the other hand, dentists, massage therapists and lawyers charging more than the $10.00 average per hour are permitted to collect several HOURS per hour. But we hear increasingly of professional services provided for our equitable wage.
Everyone who agrees to accept HOURS is now paid two HOURS ($20.00) for being listed in our newspaper Ithaca Money, and keeping their listings accurate. After eight months they may apply to be paid an additional four HOURS, as reward for continuing participation. This is how we gradually and carefully increase the per capita supply of our money. Anyone can earn and spend HOURS, whether listed in the newspaper or not.
Ithaca Money's 1,200 listings, rivalling the Yellow Pages, are a portrait of our community's capability, bringing into the marketplace time and skills not employed by the conventional market. Residents are proud of income gained by doing work they enjoy. We encounter each other as fellow Ithacans, rather than as winners and losers scrambling for dollars.
The Success Stories of 170 participants published so far testify to the acts of generosity and community that our system prompts. [See sidebar-Ed.] We're making a community while making a living. As we do so, we relieve the social desperation which has led to compulsive shopping and wasted resources.
At the same time Ithaca's locally-owned stores, which keep more wealth local, make sales and get spending power they otherwise would not have. And over $3,900 of local currency has been donated to 20 community organizations so far, by the Barter Potluck, our wide-open governing body.
As we discover new ways to provide for each other, we replace dependence on imports. Yet our greater self-reliance, rather than isolating Ithaca, gives us more potential to reach outward with ecological export industry. We are capitalizing new businesses with loans of our own cash.
We regard Ithaca's HOURS as real money, backed by real people, real time, real skills and tools. Dollars, by contrast, are funny money, backed no longer by gold or silver but by less than nothing-$4.3 trillion of national debt.
Ithaca's money honors local features we respect, like native flowers, powerful waterfalls, crafts, farms and our children. Dollars honor slave holders (Washington, Jefferson, Hamilton, Jackson) and the monuments of corporate government.
Multi-colored HOURS, some printed on locally-made watermarked cattail (marsh reed) paper, all with serial numbers, each note with its own secret color code, are harder to counterfeit than dollars.
Local currency is a lot of fun, and it's legal. HOURS must be used within state lines (they may not compete with dollars as interstate currency), they must look different than dollars, they must have a dollar exchange rate, and denominations must be at least $1.00 (no "fractional currency"). HOURS are taxable income when traded for professional goods or services.
Local currency is also lots of work and responsibility. To give other communities a boost, we've been providing a Hometown Money Starter Kit. Because of publicity (Mother Earth News, New York Times, New York Daily News, CBS This Morning, Tokyo TV, Woman's Day, the Associated Press), we've already sent the Kit to 260 communities in 44 states. Several have started new money.
Local currency is one of many things that people can do to make communities friendlier and wealthier. The HOURS program is part of a larger movement to replace the Gross National Product, whose corporations profit when average people lose jobs, get smashed up in traffic, slaughtered in war or thrown out of their houses.
The Grassroots National Product, however, measures success as fair pay, responsible use of natural resources, community connection, creativity and trust. The prime message of HOURS is that we don't wait around for presidents, corporations, generals or bureaucrats to fix our economy. We solve local problems directly. Everything can be done better, and we are starting now.
Paul Glover, who invented the HOUR system, is a community economist and ecological urban designer (author of Los Angeles: A History of the Future), with a degree in City Management. He has worked in advertising, journalism and barnyards, and rides his bicycle everywhere.
The following are some of the "Success Stories" printed in Ithaca Money:
Ed provides ophthalmology (eye doctor) services for HOURS, most of which he's spent for food. "For many years I've had a sign on my wall stating that I'm willing to negotiate for my services: no one should lack medical care because they lack dollars." He says that, "HOURS and barter are a segment of this solution to health care needs. HOURS say that everyone's time is important, and I like that."
Bill's an architect who says, "HOURS changed my life. Last winter I had no jobs, was out of money and was scared. Then I got two jobs through Ithaca Money which kept food on the table and turned out to be steady work. One of these people has become a good friend. Now I've got a third major HOUR job, very creative and exciting." He adds that "there's less stress associated with HOURS; they're fun to spend."
Susan is now fully employed with three regular child care jobs gotten through Ithaca Money. The HOURS earned as part pay buy food and other goods. She swaps for chiropractic care. "I trust a person more who has Ithaca HOURS in their wallet. It means they're invested in Ithaca, that they're willing to be open-minded about the value of labor."
Lisa has earned many HOURS gardening for a local restaurant and other clients, and has done a pencil portrait. She's bought food, carpentry, window insulation, massage and hired a garden helper. "The Ithaca Money list enables us to find people who we wouldn't find in the Yellow Pages. I really love it."
David prints Ithaca HOURS at Fine Line Printing and accepts part payment for printing them with the HOURS he himself prints. He's spent HOURS for advertising, bread, massage, and swapped printing for fiddle lessons. "I like printing HOURS because they're a pretty and respected art piece, durable rather than disposable. And it feels great to print money."
Corey receives HOURS for computer services at Public PC, and as editor of 14850 Magazine. He's bought food, coffee, books, classes in herbalism and meditation classes. He's writing a book and intends to hire an editor. "Ithaca Money has made me aware of a lot of people doing things locally that I wouldn't have known of. It feels nice to support real people supporting themselves doing their own thing, instead of depending on some huge corporation. HOURS and Ithaca Money give us each a place to find what we want to do, then to market it and experiment with it. It's easier to start an HOURS business than a dollar business."
Anne sells apples and cider for HOURS, which have been spent for eye care, piano lessons and food. "The barter list is going real well for us, and this commerce feels nice, because a sense of community is better than a sense of isolation."