BerkShares
Encyclopedia
BerkShares is a local currency
that circulates in The Berkshires
region of Massachusetts
. It was launched September 29, 2006 by BerkShares Inc., with research and development assistance from the New Economics Institute. The BerkShares website lists over 370 businesses in Berkshire County that accept the currency. In 30 months, 2.2 million BerkShares have been issued from 12 branch offices of five local banks. The bills were designed by John Isaacs and are printed by Excelsior Printing on special paper with incorporated security features from Crane & Co.. BerkShares are pegged with an exchange rate to the US dollar, but Nick Kacher of the New Economics Institute has discussed the possibility of pegging its value to 1 gallons (3.8 l) of maple syrup
to insulate the local economy against volatility in the US economy.
, sustainability
, and community, and creating a five percent discount incentive for those using the currency. BerkShares can then be used by accepting businesses to purchase goods and services from other participating businesses, make change, pay salaries, or support local non-profits, increasing the local economic multiplier effect and keeping value recirculating in the region. If businesses have an excess of BerkShares, they may also be returned to a participating bank at the equivalent rate of 95 cents per BerkShare (i.e., charging no exchange fee).
Over 70 area non-profits currently accept BerkShares for donations. Participating banks provide BerkShares with 13 brick-and-mortar offices where residents can exchange dollars for BerkShares and receive more information on the project.
The project seeks to assure that a high percentage of each dollar spent will remain circulating in the community [7]. This increase in community capital creates a positive environment for new entrepreneurial ventures. It is hoped that new businesses sprouting from the resulting local generation of wealth will replace imported goods with locally produced items, which are more environmentally sustainable in that they do not need to be shipped over vast distances by the use of fossil fuels.
and Lewes pound
, are currently being developed built upon the BerkShares model. The BerkShares currency has attracted international media attention.
The New York Times
,
The Times
, ABC World News,
CBS
,
BBC
,
CNN
, NBC
, CNBC
,
Reuters
,,
French Television TF1
,
NTV Russia
,
Business Week,
Associated Press
, and
Yahoo News have all carried prominent stories on BerkShares.
is taken at the time of purchase and paid to the IRS at the time of redemption by the merchant.
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...
that circulates in The Berkshires
The Berkshires
The Berkshires , is a highland geologic region located in the western parts of Massachusetts and Connecticut.Also referred to as the Berkshire Hills, Berkshire Mountains, and Berkshire Plateau, the region enjoys a vibrant tourism industry based on music, arts, and recreation.-Definition:The term...
region of Massachusetts
Massachusetts
The Commonwealth of Massachusetts is a state in the New England region of the northeastern United States of America. It is bordered by Rhode Island and Connecticut to the south, New York to the west, and Vermont and New Hampshire to the north; at its east lies the Atlantic Ocean. As of the 2010...
. It was launched September 29, 2006 by BerkShares Inc., with research and development assistance from the New Economics Institute. The BerkShares website lists over 370 businesses in Berkshire County that accept the currency. In 30 months, 2.2 million BerkShares have been issued from 12 branch offices of five local banks. The bills were designed by John Isaacs and are printed by Excelsior Printing on special paper with incorporated security features from Crane & Co.. BerkShares are pegged with an exchange rate to the US dollar, but Nick Kacher of the New Economics Institute has discussed the possibility of pegging its value to 1 gallons (3.8 l) of maple syrup
Maple syrup
Maple syrup is a syrup usually made from the xylem sap of sugar maple, red maple, or black maple trees, although it can also be made from other maple species such as the bigleaf maple. In cold climates, these trees store starch in their trunks and roots before the winter; the starch is then...
to insulate the local economy against volatility in the US economy.
Use
BerkShares are a local currency designed and issued for the Berkshire region of Massachusetts. According to the BerkShares website, residents purchase BerkShares at 95 cents (USD) per BerkShare from one of twelve branches of five local participating banks. Businesses then accept BerkShares at full dollar value, differentiating the business as one supporting the BerkShares values of local economy, ecologyEcology
Ecology is the scientific study of the relations that living organisms have with respect to each other and their natural environment. Variables of interest to ecologists include the composition, distribution, amount , number, and changing states of organisms within and among ecosystems...
, sustainability
Sustainability
Sustainability is the capacity to endure. For humans, sustainability is the long-term maintenance of well being, which has environmental, economic, and social dimensions, and encompasses the concept of union, an interdependent relationship and mutual responsible position with all living and non...
, and community, and creating a five percent discount incentive for those using the currency. BerkShares can then be used by accepting businesses to purchase goods and services from other participating businesses, make change, pay salaries, or support local non-profits, increasing the local economic multiplier effect and keeping value recirculating in the region. If businesses have an excess of BerkShares, they may also be returned to a participating bank at the equivalent rate of 95 cents per BerkShare (i.e., charging no exchange fee).
Over 70 area non-profits currently accept BerkShares for donations. Participating banks provide BerkShares with 13 brick-and-mortar offices where residents can exchange dollars for BerkShares and receive more information on the project.
Denominations
BerkShares are printed in 1, 5, 10, 20, and 50 BerkShare denominations, and feature images of local people.- The 1 BerkShare note uses a portrait of a MahicanMahicanThe Mahican are an Eastern Algonquian Native American tribe, originally settling in the Hudson River Valley . After 1680, many moved to Stockbridge, Massachusetts. During the early 1820s and 1830s, most of the Mahican descendants migrated westward to northeastern Wisconsin...
, the original inhabitants of the area. - The 5 BerkShare note uses a portrait of W. E. B. Du Bois, a civil rights leader born in Great BarringtonGreat Barrington, MassachusettsGreat Barrington is a town in Berkshire County, Massachusetts, United States. It is part of the Pittsfield, Massachusetts Metropolitan Statistical Area. The population was 7,104 at the 2010 census. Both a summer resort and home to Ski Butternut, Great Barrington includes the villages of Van...
. - The 10 BerkShare note uses a portrait of Robyn Van EnRobyn Van En-Community Supported Agriculture:Robyn Van En was a founder of Community Supported Agriculture , an organization that helps organic farms cope with the expenses of organic farming methods. She hosted the organization's first initiative on her Indian Line Farm in Massachusetts...
, co-founder of the community supported agriculture movement at Indian Line Farm in South Egremont, Massachusetts, died in 1997. - The 20 BerkShare note uses a portrait of Herman MelvilleHerman MelvilleHerman Melville was an American novelist, short story writer, essayist, and poet. He is best known for his novel Moby-Dick and the posthumous novella Billy Budd....
, the author of Moby-DickMoby-DickMoby-Dick; or, The Whale, was written by American author Herman Melville and first published in 1851. It is considered by some to be a Great American Novel and a treasure of world literature. The story tells the adventures of wandering sailor Ishmael, and his voyage on the whaleship Pequod,...
, written in Pittsfield, MassachusettsPittsfield, MassachusettsPittsfield is the largest city and the county seat of Berkshire County, Massachusetts, United States. It is the principal city of the Pittsfield, Massachusetts Metropolitan Statistical Area which encompasses all of Berkshire County. Its area code is 413. Its ZIP code is 01201...
. - The 50 BerkShare note uses a portrait of Norman RockwellNorman RockwellNorman Percevel Rockwell was a 20th-century American painter and illustrator. His works enjoy a broad popular appeal in the United States for their reflection of American culture. Rockwell is most famous for the cover illustrations of everyday life scenarios he created for The Saturday Evening...
, a painter who lived in Stockbridge, MassachusettsStockbridge, MassachusettsStockbridge is a town in Berkshire County in Western Massachusetts. It is part of the Pittsfield, Massachusetts, Metropolitan Statistical Area. The population was 1,947 at the 2010 census...
Purpose
The BerkShares program seeks to foster collaboration among producers, retail businesses, non-profit organizations, service providers and consumers. It is an attempt to strengthen the local economy. The program also seeks to increase public awareness of the importance of local economies and to foster optimism for the prospect of gaining local economic self-sufficiency.The project seeks to assure that a high percentage of each dollar spent will remain circulating in the community [7]. This increase in community capital creates a positive environment for new entrepreneurial ventures. It is hoped that new businesses sprouting from the resulting local generation of wealth will replace imported goods with locally produced items, which are more environmentally sustainable in that they do not need to be shipped over vast distances by the use of fossil fuels.
Emulation and media attention
A number of other local currency initiatives, such as the Totnes poundTotnes pound
The Totnes pound is an alternative local currency, intended to support the local economy of Totnes, a town in Devon, UK.The initiative is part of the Transition Towns concept, of which Totnes is a pioneer...
and Lewes pound
Lewes Pound
The Lewes Pound is a local currency in use in the town of Lewes, East Sussex. Inspired by the Totnes pound and BerkShare, the currency was introduced with the blessing of the town council in September 2008 by Transition Town Lewes - a community response to the challenges of climate change and peak...
, are currently being developed built upon the BerkShares model. The BerkShares currency has attracted international media attention.
The New York Times
The New York Times
The New York Times is an American daily newspaper founded and continuously published in New York City since 1851. The New York Times has won 106 Pulitzer Prizes, the most of any news organization...
,
The Times
The Times
The Times is a British daily national newspaper, first published in London in 1785 under the title The Daily Universal Register . The Times and its sister paper The Sunday Times are published by Times Newspapers Limited, a subsidiary since 1981 of News International...
, ABC World News,
CBS
CBS
CBS Broadcasting Inc. is a major US commercial broadcasting television network, which started as a radio network. The name is derived from the initials of the network's former name, Columbia Broadcasting System. The network is sometimes referred to as the "Eye Network" in reference to the shape of...
,
BBC
BBC
The British Broadcasting Corporation is a British public service broadcaster. Its headquarters is at Broadcasting House in the City of Westminster, London. It is the largest broadcaster in the world, with about 23,000 staff...
,
CNN
CNN
Cable News Network is a U.S. cable news channel founded in 1980 by Ted Turner. Upon its launch, CNN was the first channel to provide 24-hour television news coverage, and the first all-news television channel in the United States...
, NBC
NBC
The National Broadcasting Company is an American commercial broadcasting television network and former radio network headquartered in the GE Building in New York City's Rockefeller Center with additional major offices near Los Angeles and in Chicago...
, CNBC
CNBC
CNBC is a satellite and cable television business news channel in the U.S., owned and operated by NBCUniversal. The network and its international spinoffs cover business headlines and provide live coverage of financial markets. The combined reach of CNBC and its siblings is 390 million viewers...
,
Reuters
Reuters
Reuters is a news agency headquartered in New York City. Until 2008 the Reuters news agency formed part of a British independent company, Reuters Group plc, which was also a provider of financial market data...
,,
French Television TF1
TF1
TF1 is a national French TV channel, controlled by TF1 Group, whose major share-holder is Bouygues. TF1's average market share of 24% makes it the most popular domestic network...
,
NTV Russia
NTV Russia
NTV is a Russian television channel. As a subsidiary of Vladimir Gusinsky's company Media-Most, it was a pioneer in the post-Soviet independent television media, but was later taken over by state-owned Gazprom.- History :...
,
Business Week,
Associated Press
Associated Press
The Associated Press is an American news agency. The AP is a cooperative owned by its contributing newspapers, radio and television stations in the United States, which both contribute stories to the AP and use material written by its staff journalists...
, and
Yahoo News have all carried prominent stories on BerkShares.
Taxation
When someone pays for goods or services with local money, the income to the business is taxable. Similar to gift cards, the applicable taxTax
To tax is to impose a financial charge or other levy upon a taxpayer by a state or the functional equivalent of a state such that failure to pay is punishable by law. Taxes are also imposed by many subnational entities...
is taken at the time of purchase and paid to the IRS at the time of redemption by the merchant.
External links
- The website of the Berkshares, Inc. the issuing organization of Berkshares
- USA TODAY: Communities print their own currency to keep cash flowing
- TIME MAGAZINE: Local Currencies by Judith Schwartz
- WALL STREET JOURNAL: The Goat Who Took on the Fed
- Making Money: Town Prints Up Its Own Currency
- Community Currency Magazine