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LOCAL BARTER SYSTEM GEARING UP IN UKIAH
Especially Good For Service-Oriented Businesses
By GLENDA ANDERSON
The Daily Journal
Ukiahians who'd rather barter than use Uncle Sam's dollars will soon be able to do so more readily.
Ukiah Hours a home-grown scrip is expected to hit the streets at about the same time as the new millennium.
"Our goal is to have the bills launched into circulation by the first of January said Ken McCormick, one of the scrip's organizers and owner of Visual Identity Printing.
While its nor intended to usurp federal dollars, the local scrip has a number of benefits regular dollars don't have, its promoters say.
For one thing, the money will circulate indefinitely within the community rather than making the rounds at a few stores, then heading on to another place like regular money does. "The money is not going to be taken by Wal-Mart or K-mart," said Dale Glaser, a retired computer instructor.
Actually, in some communities with local scrip, the big chain stores participate to a limited extent, such as offering scrip as bonuses, McCormick said. "K-mart in Ithaca (New York) participates." he said. He said he hopes the same will happen locally.
But the primary users - and beneficiaries are expected to be local businesses, especially ones that are primarily service oriented.
Local scrip also can foster cottage industries, McCormick said. "I think there are a lot of start-up businesses and people with hobbies. It would enable them to promote a new business and get customers who may not be just Ukiah Hour customers, " he said.
McCormick noted that people who accept Ukiah Hours will be posted on an Internet site, much like a yellow page advertisement. He said a woman in Ithaca started out making a few pies for friends and family. Then "she started exchanging hours and heroine she knew it, she had this business going," McCormick said.
Local scrip also fosters community spirit and trust, said Larry Sheehy, a former Ukiah planning comnmissioner who now works at a downtown bookstore. "We encounter each other as fellow (Ukiahans) rather than winners or losers scrambling for dollars," he said. paraphrasing Ithaca money founder Paul Glover.
"Here you have a system that isn't based on speculation, the moncy is backed by labor and people you know in the community," Glaser said.
Ukiah Hours also have an advantage over other barter systems. which usually require that two people want something from each other. With bills, one need not find a perfect march because there is a pool of people with whom one can trade.
But there are some downsides that are expected, an least initially. McCormick noted that who accept Ukiah Hours at first might find they have few places to spend them. So, someone like himself, might end up with more bills than he can redeem. For that reason, McCormick expects that people will take the local currency only for partial payments and limited items at first.
But, as membership in the cooperative increases, that problem should be alleviated, he said.
Even in the long run, McCormick expects that people who have to spend a lot of U.S. dollars on their products like electronic equipment won't be able to accept Ukiah Hours as full payment. "It lends itself to certain types of services, " he said.
In order to maintain the value of the bills, they will be printed in limited amounts. McCormick said. McCormick, who printed the prototypes of the bills, said that's been one of the most fun parts of die process so far. "I think the best thing about Ukiah Hours is that I get to print my own money," he joked.
Ukiah Hour bills will come in denominations valued at a tenth of an hour, a half hour, one hour ad two hours. The bills' designs are based on local history. The one-tenth hour bill, for example, features an 1886 photo of basket weaver Jennie Miller, of Potter Valley.
As proposed, one hour equals $10. "We feel $10 an hour is a reasonable minimum wage." Glaser said. While one hour is theoretically worth $10. people who accept them will be free to ask for more hours if they believe their time is worth it or normally charge more.
For example, a doctor wouldn't be expected to make an hour for hour trade with a carpenter.
However, in a perfect world, everyone's time would be worth the same amount, Sheehy said
The spirit behind the money is that "an hour of life is equal to an hour of life." Glaser said.
The idea of local scrip is not a new concept.
While it's cropped up from time to time throughout history, one of the more notable periods was during the Great Depression. when money was scarce and prospects of work poor.
More recently, and under less dire circumstances, scrip has made a resurgence. There's Sonoma Cash, Mendocino SEED and Berkeley' Bread, to name just a few. "Its springing up everywhere," Glaser said.
More information about Ukiah Hours, including how to become a member, is available on the Internet at www.greenmac.com/hours or by calling 463-5517.
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