In Rhinebeck the U.S. dollar just isn’t what it used to be.
In response to this, and the general economic downturn, a group of local small business owners are taking money matters into their own hands with a push to create a local currency, tentatively called ‘RhineBucks,’ to promote small business growth in the Rhinebeck area.
RhineBucks would be modeled on other successful local currency systems, most notably the town of Ithaca’s “Ithaca Hours,” which was started in the 1990s, said Dutchess County Legislator Joel Tyner (D- Rhinebeck/Clinton), who has played a leadership role in the project since its inception.
Though still in the planning stages, Tyner said the local currency, most likely in the form of printed bills, would function as legal tender and would be accepted in place of U.S. dollars at participating small businesses in the Rhinebeck area.
“One of the (principal) benefits of local currencies is that local resources stay in the community,” said Tyner, because the money can only be spent at locally owned businesses.
Numerous reports in recent years have found that money is more likely to be re-circulated within communities where it is spent if consumers shop at locally owned businesses instead of at “big box” national chain stores, said Tyner.
A recent study by the Business Alliance for Local Living Economics (BALLE) – the largest national network representing independent businesses – found that 68 cents out of every dollar spent at local businesses stays within the given community. In contrast, according to BALLE, only 43 cents of every dollar spent at national chain retailers is re-circulated into the local economy.
“Especially with the economic crisis and unemployment, (a local currency system) can help bring a community together,” said Tyner.
Tyner said many logistical questions remain to be answered – such as how the RhineBucks project will be financed initially, the exact value of the currency, and what the bills will actually look like.
“Nothing is set in stone,” said Tyner. “We’re a long way away from getting it off the ground.” To do so, Tyner said, residents and small business owners have to buy into the concept.
Groundswell of support
The enthusiasm surrounding the most recent forum on the project – the fourth in the past year – suggests the idea is beginning to catch on in Rhinebeck.
The forum, on Nov. 18, was co-hosted by Tyner and Bob Meglino, the owner of Leonardo’s Italian Market. It attracted a solid group of local business owners, led by Meglino, who was unavailable for comment for this story, who are committed to get making the currency a reality.
“I got interested in this because it’s a good way to support our community,” said Roberta Schiff, the Mid-Hudson Vegetarian society coordinator, who attended the forum. “If people really believe in it and are able to get it started, it has a good chance of success.”
Norbert Lazar, the owner of Phantom Gardner, said now could be the best time to start the project, when small business owners facing an economic crisis would do well to band together to strengthen their local economies.
Small businesses “are going to have to be creative and try new methods to deal with what’s going on,” said Lazar, who supports the initiative after attending several meetings. “People need to rethink how they’re spending their money and where it’s going.”
Some business owners, though supportive of the plan, said it would be hard to convince business owners and consumers alike of the local currency’s legitimacy. “It really takes a bit of consciousness raising for people to understand it,” said David Hermans, the owner of Oblong Books. “To me it’s a little bit of a hard sell even though I think its important to use the locally currency idea to promote keeping money in the community.”
Tyner said the group’s next step would be exactly that – selling the local currency idea to small business owners around Rhinebeck. Tyner said they plan to enlist around 100 small business owners and service providers willing to participate before formally launching the project.
The next forum on RhineBucks will take place on Dec. 2 at 7 p.m. at Leonardo’s Italian Market at 51 East Market St. in Rhinebeck.