Ithaca HOURS

Summary:

The Ithaca HOURS was started by Paul Glover, community organizer and adjunct faculty at Temple University, in 1991. The Ithaca HOURS system is the oldest and largest local currency system still in operation and has inspired the creation of several other local currency systems.

At a Glance:

History:

Reproduced from the Ithaca HOURS website:

“…During research into our local economy in 1989, I noticed that a little county in South Dakota printed coupons for downtown merchant X-mas promotion, the first I had ever heard of local currency. Two years later, early in 1991, while drawing pictures with my girlfriend’s nieces, I sketched a cartoon “Ithaca Money” note. A few weeks later I saw a sample “Hour” note issued by British industrialist Robert Owen in 1847. This Hour was negotiable only at Owens’ company store and based, I discovered in 1993, on Josiah Warren’s “Time Store” notes of 1827.

During May 1991, local student Patrice Jennings asked to interview me about the Ithaca LETS system. This conversation strongly reinforced my interest in barter, and Patrice suggested we revive a grassroots trading system. Local merchant Tom Koslowski encouraged the idea of local currency when it was mentioned to him. A few days later, Annie McCasland, my landlady’s daughter, entered my room saying she had just heard an NPR report about Deli Dollars, organized by the E.F. Schumacher Society of Great Barrington, Massachusetts.

Within a few days designs for the HOUR and Half HOUR were complete except for signatures. Patrice and I began to encourage participation. Approached at GreenStar Co-op with photocopied samples and a signup sheet on clipboard, Gary Fine, a local massage therapist, said “sure,” and signed. Then came Jan Nigro, songwriter/musician; Mary Loehr, writer and cook. The first dozens all agreed, without waiting for a business plan or guarantee. Emboldened, I began to ask for small donations to help pay for printing HOURS. During the next four months, 90 people provided 262 offers (++) and requests (–) for the first issue of Ithaca Money.

Jim Rohrrsen of Papa Jim’s toys became the first retailer to actually enroll to accept HOURS. Fine Line Printing completed the first run of HOURS October 1991. These notes, 1,500 HOURS and 1,500 Half HOURS, were nearly twice as large as subsequent notes. Ithaca Money #1 (now HOUR Town) was printed at Our Press in Chenango Bridge, NY on October 16, 1991. The next day I issued myself 10 HOURS as the first of four repayments for the cost of printing HOURS (David St. George of Fine Line accepted 10% of his payment in HOURS). The day after that, October 18, 1991, 382 HOURS were disbursed and prepared for mailing to the first 93 pioneers….” – Paul Glover

Click Here to read the whole story

Benefits:

The introduction of the Ithaca HOURS brought many benefits to the community:

• Expanded spending power
• Strengthening of local small businesses
• Encouragement of equitable pay
• Facilitating a green economy network
• Enhancing community solidarity

Future Outlook:

The Ithaca HOURS is one of the most stable local currencies in the United States. The managing board is also currently negotiating with larger businesses and local/state governments on the possibility of accepting HOURS as payment. The biggest attraction to the above mentioned parties is the ability of the local currency to enable them to retain federal dollars while creating healthy business relationships and investing in the local economy.

Reflections:

Paul Glover has an excellent article on important elements to establishing a successful local currency. The article can be found here.

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