Ithaca Hours
Encyclopedia
The Ithaca HOUR is a local currency
used in Ithaca, New York
and is the oldest and largest local currency system in the United States
that is still operating. It has inspired other similar systems in Madison, Wisconsin
; Corvallis, Oregon
; and a proposed system in the Lehigh Valley
, Pennsylvania. One Ithaca HOUR is valued at US$10 and is generally recommended to be used as payment for one hour's work, although the rate is negotiable.
HOURS are printed on high-quality paper and use faint graphics that would be difficult to reproduce, and each bill is stamped with a serial number, in order to discourage counterfeiting.
In 2002, a one-tenth hour bill was introduced, partly due to the encouragement and funding from Alternatives Federal Credit Union and feedback from retailers who complained about the awkwardness of only having larger denominations to work with; the bills bear the signatures of both HOURS President Steve Burke and the president of AFCU.
in November 1991. The system has historical roots in scrip
and alternative and local currencies that proliferated in America during the great depression
.
While doing research into local economics during 1989, Glover had seen an "Hour" note 19th century British industrialist Robert Owen
issued to his workers for spending at his company store. After Ithaca Hours began, he discovered that Owen's Hours were based on Josiah Warren
's "Time Store
" notes of 1827.
In May 1991, local student Patrice Jennings interviewed Glover about the Ithaca LETS system. This conversation strongly reinforced his interest in trade systems. Jennings's research on the Ithaca LETS and its failure was integral to the development of the HOUR currency; conversations between Jennings and Glover helped to ensure that HOURS used knowledge of what had not worked with the LETS system.
Within a few days, he had designs for the HOUR and Half HOUR notes. He established that each HOUR would be worth the equivalent of $10, which was about the average hourly amount that workers earned in surrounding Tompkins County
, although the exact rate of exchange for any given transaction was to be decided by the parties themselves. At GreenStar Cooperative Market, a local food co-op, Glover approached Gary Fine, a local massage therapist, with photocopied samples. Fine became the first person to sign a list formally agreeing to accept HOURS in exchange for services. Soon after, Jim Rohrrsen, the proprietor of a local toy store, became the first retailer to sign-up to accept Ithaca HOURS in exchange for merchandise.
When the system was first started, 90 people agreed to accept HOURS as pay for their services. They all agreed to accept HOURS despite the lack of a business plan or guarantee. Glover then began to ask for small donations to help pay for printing HOURS.
Fine Line Printing completed the first run of 1,500 HOURS and 1,500 Half HOURS in October 1991. These notes, the first modern local currency, were nearly twice as large as the current Ithaca HOURS. Because they didn't fit well in people's wallets, almost all of the original notes have been removed from circulation.
The first issue of Ithaca Money was printed at Our Press, a printing shop in Chenango Bridge, New York, on October 16, 1991. The next day Glover issued 10 HOURS to Ithaca Hours, the organization he founded to run the system, as the first of four reimbursements for the cost of printing HOURS. The day after that, October 18, 1991, 382 HOURS were disbursed and prepared for mailing to the first 93 pioneers.
On October 19, 1991, Glover bought a samosa
from Catherine Martinez at the Farmers' Market with Half HOUR #751—the first use of an HOUR. Several other Market vendors enrolled that day.
Stacks of the Ithaca Money newspaper were distributed all over town with an invitation to "join the fun."
A Barter Potluck was held at GIAC on November 12, 1991, the first of many monthly gatherings where food and skills were exchanged, acquaintances made, and friendships renewed.
The Advisory Board incorporated the Ithaca HOUR system as Ithaca Hours, Inc. in October 1998, and hosted the first elections for Board of Directors in March 1999. The first Board of Directors included Monica Hargraves, Dan Cogan, Margaret McCasland, Erica Van Etten, Greg Spence Wolf, Bob LeRoy, LeGrace Benson, Wally Woods, Jennifer Elges, and Donald Stephenson. In May 1999 Glover turned the administration of Ithaca HOURS over to the newly elected Board of Directors. Glover has continued to support Ithaca Hours through community outreach to present, most notably through the Ithaca Health Fund (now incorporated as part
of the Ithaca Health Alliance
) and Ithaca Community News
.
The current Board of Directors, 2005–2006, includes Steve Burke, Monica Hargraves, Rebecca Nellenback, and Bill Chaisson.
One of the primary functions of the Ithaca Hours system is to promote local economic development. Businesses who receive Hours must spend them on local goods and services, thus building a network of inter-supporting local businesses. While non-local businesses are welcome to accept Hours, those businesses need to spend them on local goods and services to be economically sustainable.
In their mission to promote local economic development, the Board of Directors also makes interest-free loans of Ithaca HOURS to local businesses and grants to local non-profit organizations.
Local currency
In economics, a local currency, in its common usage, is a currency not backed by a national government , and intended to trade only in a small area. As a tool of fiscal localism, local moneys can raise awareness of the state of the local economy, especially among those who may be unfamiliar or...
used in Ithaca, New York
Ithaca, New York
The city of Ithaca, is a city in upstate New York and the county seat of Tompkins County, as well as the largest community in the Ithaca-Tompkins County metropolitan area...
and is the oldest and largest local currency system in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
that is still operating. It has inspired other similar systems in Madison, Wisconsin
Madison, Wisconsin
Madison is the capital of the U.S. state of Wisconsin and the county seat of Dane County. It is also home to the University of Wisconsin–Madison....
; Corvallis, Oregon
Corvallis, Oregon
Corvallis is a city located in central western Oregon, United States. It is the county seat of Benton County and the principal city of the Corvallis, Oregon Metropolitan Statistical Area, which encompasses all of Benton County. As of the 2010 United States Census, the population was 54,462....
; and a proposed system in the Lehigh Valley
Lehigh Valley
The Lehigh Valley, known officially by the United States Census Bureau as the Allentown-Bethlehem-Easton, PA-NJ metropolitan area and referred to locally as The Valley and A-B-E, is a metropolitan region consisting of Lehigh, Northampton, Berks, and Carbon counties in eastern Pennsylvania and...
, Pennsylvania. One Ithaca HOUR is valued at US$10 and is generally recommended to be used as payment for one hour's work, although the rate is negotiable.
The Currency
Ithaca HOURS are not backed by national currency and cannot be freely converted to national currency, although some businesses may agree to buy them.HOURS are printed on high-quality paper and use faint graphics that would be difficult to reproduce, and each bill is stamped with a serial number, in order to discourage counterfeiting.
In 2002, a one-tenth hour bill was introduced, partly due to the encouragement and funding from Alternatives Federal Credit Union and feedback from retailers who complained about the awkwardness of only having larger denominations to work with; the bills bear the signatures of both HOURS President Steve Burke and the president of AFCU.
Origin
Ithaca Hours were started by Paul GloverPaul Glover
Paul Glover is a community organizer currently based in Philadelphia, Pennsylvania. He has been adjunct faculty at Temple University and founder of the Philly Orchard Project and editor of Green Jobs Philly News....
in November 1991. The system has historical roots in scrip
Scrip
Scrip is an American term for any substitute for currency which is not legal tender and is often a form of credit. Scrips were created as company payment of employees and also as a means of payment in times where regular money is unavailable, such as remote coal towns, military bases, ships on long...
and alternative and local currencies that proliferated in America during the great depression
Great Depression
The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s...
.
While doing research into local economics during 1989, Glover had seen an "Hour" note 19th century British industrialist Robert Owen
Robert Owen
Robert Owen was a Welsh social reformer and one of the founders of utopian socialism and the cooperative movement.Owen's philosophy was based on three intellectual pillars:...
issued to his workers for spending at his company store. After Ithaca Hours began, he discovered that Owen's Hours were based on Josiah Warren
Josiah Warren
Josiah Warren was an individualist anarchist, inventor, musician, and author in the United States. He is widely regarded as the first American anarchist, and the four-page weekly paper he edited during 1833, The Peaceful Revolutionist, was the first anarchist periodical published, an enterprise...
's "Time Store
Cincinnati Time Store
The Cincinnati Time Store was a successful retail store that was created by American individualist anarchist Josiah Warren to test his theories that were based on his strict interpretation of the labor theory of value. The experimental store operated from May 18, 1827 until May 1830...
" notes of 1827.
In May 1991, local student Patrice Jennings interviewed Glover about the Ithaca LETS system. This conversation strongly reinforced his interest in trade systems. Jennings's research on the Ithaca LETS and its failure was integral to the development of the HOUR currency; conversations between Jennings and Glover helped to ensure that HOURS used knowledge of what had not worked with the LETS system.
Within a few days, he had designs for the HOUR and Half HOUR notes. He established that each HOUR would be worth the equivalent of $10, which was about the average hourly amount that workers earned in surrounding Tompkins County
Tompkins County, New York
Tompkins County is a county located in the U.S. state of New York, and comprises the whole of the Ithaca metropolitan area. As of the 2010 census, the population was 101,564. The county seat is Ithaca, and the county is home to Cornell University, Ithaca College and Tompkins Cortland Community...
, although the exact rate of exchange for any given transaction was to be decided by the parties themselves. At GreenStar Cooperative Market, a local food co-op, Glover approached Gary Fine, a local massage therapist, with photocopied samples. Fine became the first person to sign a list formally agreeing to accept HOURS in exchange for services. Soon after, Jim Rohrrsen, the proprietor of a local toy store, became the first retailer to sign-up to accept Ithaca HOURS in exchange for merchandise.
When the system was first started, 90 people agreed to accept HOURS as pay for their services. They all agreed to accept HOURS despite the lack of a business plan or guarantee. Glover then began to ask for small donations to help pay for printing HOURS.
Fine Line Printing completed the first run of 1,500 HOURS and 1,500 Half HOURS in October 1991. These notes, the first modern local currency, were nearly twice as large as the current Ithaca HOURS. Because they didn't fit well in people's wallets, almost all of the original notes have been removed from circulation.
The first issue of Ithaca Money was printed at Our Press, a printing shop in Chenango Bridge, New York, on October 16, 1991. The next day Glover issued 10 HOURS to Ithaca Hours, the organization he founded to run the system, as the first of four reimbursements for the cost of printing HOURS. The day after that, October 18, 1991, 382 HOURS were disbursed and prepared for mailing to the first 93 pioneers.
On October 19, 1991, Glover bought a samosa
Samosa
A samosa is a stuffed, deep fried,snack that is very popular in the Indian Subcontinent, Southeast Asia, Central Asia and Southwest Asia, the Arabian Peninsula, the Mediterranean, the Horn of Africa, North Africa and South Africa...
from Catherine Martinez at the Farmers' Market with Half HOUR #751—the first use of an HOUR. Several other Market vendors enrolled that day.
Stacks of the Ithaca Money newspaper were distributed all over town with an invitation to "join the fun."
A Barter Potluck was held at GIAC on November 12, 1991, the first of many monthly gatherings where food and skills were exchanged, acquaintances made, and friendships renewed.
Management
In 1996, Glover was running the Ithaca Hours system from his home, and the system had an advisory board and a governing board called the "Barter Potluck".The Advisory Board incorporated the Ithaca HOUR system as Ithaca Hours, Inc. in October 1998, and hosted the first elections for Board of Directors in March 1999. The first Board of Directors included Monica Hargraves, Dan Cogan, Margaret McCasland, Erica Van Etten, Greg Spence Wolf, Bob LeRoy, LeGrace Benson, Wally Woods, Jennifer Elges, and Donald Stephenson. In May 1999 Glover turned the administration of Ithaca HOURS over to the newly elected Board of Directors. Glover has continued to support Ithaca Hours through community outreach to present, most notably through the Ithaca Health Fund (now incorporated as part
of the Ithaca Health Alliance
Ithaca Health Alliance
The Ithaca Health Alliance is a community-based health care cooperative based in Ithaca, New York. It incorporates financial and service assistance models to alleviate health care costs for its members and is a model for cooperative health care reform in the United States...
) and Ithaca Community News
Ithaca Community News
The Ithaca Community News is a semi-monthly email newsletter and web site founded by former local resident and activist Paul Glover. He had over 7,900 subscribers, not including website readers, which represented roughly a quarter of the population of Ithaca, NY. Many subscribers were from other...
.
The current Board of Directors, 2005–2006, includes Steve Burke, Monica Hargraves, Rebecca Nellenback, and Bill Chaisson.
Economic development
Several million dollars value of HOURS have been traded since 1991 among thousands of residents and over 500 area businesses, including the Cayuga Medical Center, Alternatives Federal Credit Union, the public library, many local farmers, movie theatres, restaurants, healers, plumbers, carpenters, electricians, and landlords.One of the primary functions of the Ithaca Hours system is to promote local economic development. Businesses who receive Hours must spend them on local goods and services, thus building a network of inter-supporting local businesses. While non-local businesses are welcome to accept Hours, those businesses need to spend them on local goods and services to be economically sustainable.
In their mission to promote local economic development, the Board of Directors also makes interest-free loans of Ithaca HOURS to local businesses and grants to local non-profit organizations.
See also
- Local currencyLocal currencyIn economics, a local currency, in its common usage, is a currency not backed by a national government , and intended to trade only in a small area. As a tool of fiscal localism, local moneys can raise awareness of the state of the local economy, especially among those who may be unfamiliar or...
- List of community currencies in the United States
- Labour voucherLabour voucherLabour vouchers are a device proposed to govern demand for goods in some models of socialism, much as money does under capitalism.-Outline:...
- Time-based currencyTime-based currencyIn economics, a time-based currency is an alternative currency where the unit of exchange is the man-hour.Some time-based currencies value everyone’s contributions equally. One hour equals one service credit...
- WörglWörglWörgl is a town in Tyrol, Austria, in the Kufstein district. It is 20 km from the state border with Bavaria.-Transport:Wörgl is an important railway junction between the line from Innsbruck to Munich, and the inner-Austrian line to Salzburg...