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.
BerkShares, a currency adopted by
towns in western Massachusetts to support locally owned businesses over
national chains, is seen in Great Barrington, Massachusetts, June 4, 2007.
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
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
"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
Great Barrington attracts weekend residents and tourists from the New York
area who help to support its wealth of organic farms, yoga studios, cafes and
businesses like Allow Yourself to Be, which offers services ranging from massage
to "chakra balancing" and Infinite Quest, which sells "past life regression
The BerkShares program is one of about a dozen such efforts in the nation.
Local groups in California, Kansas, Michigan, New York, Oregon, Pennsylvania,
Vermont and Wisconsin run similar ones. One of the oldest is Ithaca Hours, which
went into circulation in 1991 in Ithaca, New York.
About $120,000 of that currency circulates in the rural town. Unlike
BerkShares, Ithaca Hours cannot officially be freely converted to dollars,
though some businesses buy them.
Stephen Burkle, president of the Ithaca Hours program, said the notes are a
badge of local pride.
"At the beginning it was very hard to get small businesses to get on board
with it," said Burkle, who also owns a music store in Ithaca. "When Ithaca Hours
first started, there wasn't a Home Depot in town, there wasn't a Borders, there
wasn't a Starbucks. Now that there are, it's a mechanism for small businesses to
compete with national chains."
U.S. law prevents states from issuing their own currency but allows private
groups to print paper scrip, though not coins, said Lewis Solomon, a professor
of law at George Washington University, who studies local currencies.
"As long as you don't turn out quarters and you don't turn out something that
looks like the U.S. dollar, it's legal," Solomon said.
The BerkShares experiment comes as the dollar is losing some of its status on
international markets, with governments shifting some reserves into euros, the
pound and other investments as the U.S. currency has slid in value.
But the dollar is still the currency that businesses in Great Barrington need
to pay most of their bills.
"The promise of this program is for it to be a completed circle," said Matt
Rubiner, owner of Rubiner's cheese shop and Rubi's cafe. Some local farmers who
supply him accept BerkShares, but he pays most of his bills in dollars.
"The circle isn't quite completed yet in most cases, and someone has to take
the hit," Rubiner said, referring to the 10 percent discount. "The person who
takes the hit is the merchant, it's me."
Meanwhile, Berkshire Hills Bancorp Inc., a western Massachusetts bank that
exchanges BerkShares for dollars, is considering BerkShares-denominated checks
and debit cards.
"Businesses aren't comfortable walking around with wads of BerkShares to pay
for their supplies or their advertising," said Melissa Joyce, a branch officer
with the bank, which has 25 branches, six of which exchange BerkShares. "I do
hope that we're able to develop the checking account and debit card, because it
will make it easier for everyone."