Alternative money has appealed to many residents of Barrington and a number of other Massachusetts towns. Here is why. Thanks to the local currency, the intra-regional barter system, which operates without the use of the dollar, has improved, and accounting has become much simpler. And although few believe that berkshares will eventually be able to replace the dollar, Barrington residents are proud of their currency and consider it hard and convertible.
“Berkshares are cash that can be used to pay in shops and cafes,” said Susan Witt, director of E.F. Schumacher Society, which initiated the currency project, in an interview with the Associated Press. The berkshares program is not the first attempt to create alternative money in the United States. Similar projects are already being implemented in California, Kansas, Michigan, New York, Oregon, Pennsylvania, and other states. However, only in Massachusetts do banks agree to exchange alternative money for dollars.
According to economists, the popularity of local currencies to some extent indicates the dollar's weakness. It is known that over the past four years the “greenback” has weakened against leading world currencies by 25-30%. “U.S. legislation formally prohibits states from printing their own money, but it does allow them to put into circulation an equivalent to the dollar, which is what berkshares is,” explains Lewis Solomon, a law professor at George Washington University. According to him, the experiment continues to gain momentum because the dollar is weakening in the world, and many governments are gradually converting their foreign exchange reserves into euros, yen, pounds, and other currencies.
According to the project organizers, about 844,000 berkshares banknotes have been issued with a total value of 759,600 dollars. Banknotes are printed in denominations of 1, 5, 10, and 20 berkshares. Today they are accepted as a means of payment in nearly 280 restaurants, cafes, supermarkets, dry cleaners, and workshops in Barrington, as well as neighboring towns in the state, including Stockbridge, where the renowned artist Norman Rockwell lived for a quarter of a century, and who is depicted on the 50-berkshare banknote.
The local currency has been in circulation for 9 months now, and during this time it has become an integral part of the state's economy. Companies that accept berkshares even offer a 10% discount to customers who pay in the local currency. “I really love using the local currency,” admits 43-year-old Barrington resident, teacher Trace Atchison, who always pays with berkshares when he visits a local diner.
But one should still not get carried away with euphoria. American economists remind that the dollar remains the only nationwide currency of the United States, and it is in dollars that Barrington businessmen are obliged to conduct most of their transactions. Matt Rubiner, owner of a local restaurant and cheese shop, is very glad that farmers who supply him with products accept berkshares as a means of payment. However, he admits that he has to conduct most of his transactions with national partners in dollars.
Experts compare the berkshares experience with another local currency, Ithaca Hours, which was introduced into circulation in 1991 in New York. Unlike berkshares, Ithaca Hours notes cannot be officially equated to dollars (they are not exchanged at banks); nevertheless, some firms willingly acquire the local currency. Stephen Burkel, president of the Ithaca Hours program, believes that this currency has become a source of pride for New York. “At first it was very difficult to get even small firms and companies to accept these banknotes,” said Burkel, who owns a music store. However, some time after the start of the Ithaca Hours project, it became possible to pay with the local currency at such large nationwide chain stores and restaurants as Home Depot, Borders Group, and Starbucks.