Posted on 06/19/2007 7:03:48 AM PDT by Barney Gumble
GREAT BARRINGTON, Massachusetts (Reuters) - A walk down Main Street in this New England town calls to mind the pictures of Norman Rockwell, who lived nearby and chronicled small-town American life in the mid-20th Century.
So it is fitting that the artist's face adorns the 50 BerkShares note, one of five denominations in a currency adopted by towns in western Massachusetts to support locally owned businesses over national chains.
"I just love the feel of using a local currency," said Trice Atchison, 43, a teacher who used BerkShares to buy a snack at a cafe in Great Barrington, a town of about 7,400 people. "It keeps the profit within the community."
There are about 844,000 BerkShares in circulation, worth $759,600 at the fixed exchange rate of 1 BerkShare to 90 U.S. cents, according to program organizers. The paper scrip is available in denominations of one, five, 10, 20 and 50.
In their 10 months of circulation, they've become a regular feature of the local economy. Businesses that accept BerkShares treat them interchangeably with dollars: a $1 cup of coffee sells for 1 BerkShare, a 10 percent discount for people paying in BerkShares.
Named for the local Berkshire Hills, BerkShares are accepted in about 280 cafes, coffee shops, grocery stores and other businesses in Great Barrington and neighboring towns, including Stockbridge, the town where Rockwell lived for a quarter century.
"BerkShares are cash, and so people have transferred their cash habits to BerkShares," said Susan Witt, executive director of the E.F. Schumacher Society, a nonprofit group that set up the program. "They might have 50 in their pocket, but not 150. They're buying their lunch, their coffee, a small birthday present."
I believe the coining of currency by the states or people is Constitutionally prohibited.
And a minimal number of black and brown people! Just a few to make one feel “diverse” and superior, but not too many.
This would not be a violation of the Constitution.
Is that like a private organization of “legitimate businessmen”?
Sounds to me what we have here are more like gift certificates then a currency. Visit our town. And if you use your Burlington Bucs get a 10% discount at participating merchants.
Yeah, you’re right, I didn’t read deep enough and realize that this is being done by local merchants and not the towns themselves. My bad.
}:-)4
It is no different than a group of merchants printing up coupons.
If they wised they could sell you a cup of coffee in exchange for a bag of magic beans.
As I understand it, the Federal Reserve is a dodge to get around that constitutional requirement. The government's not printing money -- the Federal Reserve is. Maybe someone else can provide more detail.
(((((chuckle)))))
Isn't that the point?
Hey, I had to go to their website to find that it was being done by a private group and not a government.
However, it would not surprise me if the Imperial Federal Government went to that little town in Mass and played another Game of Ruby Ridge.
Several cities have done it. http://www.zpub.com/notes/LocalCurrency.html shows images of the bills for several.
Ithaca, NY - In Ithaca We Trust
Ukiah, CA - In Each Other We Trust
etc.
Can’t see how it does it’s intended purpose though if it is fully exchangable with US dollars. If my local store is supplied by a producer out of town/country, the supplier still gets payment in exchange for goods.
Excellent question. It will be like musical chairs to see who is left "holding the bag (of fake currency)".
A more extensive list
http://www.ithacahours.com/otherhours.html
It's simply barter, which is not illegal.
I'm not so sure. For simplicity's sake, let's say there are two restaurants in this town: a local eatery and a Ruby Tuesday. The Ruby Tuesday, being a national chain, will naturally get a lot of business, probably at the expense of the local eatery. So, in an effort to attract more business, the local guy decides to accept BerkShares, knowing that customers might be more likely to eat there if they get a 10% discount. Ruby Tuesday, being a national chain, probably won't accept BerkShares.
So the local guy figures that he'll forego 10% of his profits for additional business. Seems like a straight-forward calculation, but not so fast: let's assume that for a $100 meal, most people would pay by credit card, not cash. The restaurant pays a fee for accepting that credit card transaction, and, depending on the card you use, could be as high as 4% or 5%, not to mention the fixed cost he pays for the equipment that handles the transactions.
So when he accepts BerkShares, which are "cash," he only loses maybe 5%-7% on the meal, rather than the seeming 10% because he's not paying merchant fees to the credit card company.
Seems to me like it's a reasonable calculus for the business owner: they'll make up the discounts in volume. Same idea as a business that prints coupons.
Isn’t this illegal? I thought only the Feds could print paper currency, and state and local governments were restricted to minting silver and gold coins by the constitution.
If you don’t include it on Form 1099-B it is.
“looks to me like it is the foolish businesses who accept this crap at par get screwed.....”
LOL! You’ve never worked in “retail” have you? :) Actually, it’s the poor customer who pays in “cash” that gets taken. ;)
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