Much of this tendency for money to leave the rural areas and be sucked into urban financial centers results from the centralization of banking, which took place in the early part of this century under the Federal Reserve Act of 1913 and the pressure of World War I. Previous to 1913, local banks created their own funds based on their gold reserves. They were not dependent on the Federal Reserve Board to control reserve requirements-the amount of credit or money available within local regions. During the early part of the nineteenth century, this fact played a very important role in the rapid development of the U.S.In the early 1970's, Schumacher Center founder Robert Swann worked with Ralph Borsodi to issue Constants, a commodity-backed currency, on an experimental basis in Exeter, New Hampshire. The creation, circulation, and result of the Exeter Experiment is detailed in Inflation and The Coming Keynesian Catastrophe: The Story of the Exeter Experiment With Constants. The Schumacher Center furthered that work in the Berkshires with development of SHARE Micro-credit program, Deli Dollars, Berkshire Farm Preserve Notes, and BerkShares (see below). The theory, history, and practice of the Schumacher Center for New Economics' work with local currencies is detailed in Democratizing Monetary Issue: Vision and Implementation in the Berkshire Region of the U.S. by Susan Witt.
- BerkShares Local Currency
- How Does It Work?
- Local Currency Archives
- In the Media
- Local Currency Models
- Local Currency Resources
- Local Currencies Directory
BerkShares Local CurrencyBerkShares are a local currency for the Berkshire region of Massachusetts. Dubbed a "great economic experiment" by the New York Times, BerkShares are a tool for community empowerment, enabling merchants and consumers to plant the seeds for an alternative economic future for their communities. In 2006 the Schumacher Center for a New Economics worked with businesses, banks, and private citizens in its home region of the Berkshires to incorporate BerkShares, Inc. Organized as a non-profit corporation with membership open to anyone in the region, the board of directors is elected by members at an annual meeting. BerkShares, Inc. designed and printed BerkShare notes (B$), which feature local heroes and the works of local artists. Over 10 million B$ have gone out in circulation between 2006 and mid 2019 in a region of 21,000 residents. Approximately 140,000 B$ are circulating at any one time. BerkShares are exchanged for federal currency at 16 branches of four local participating banks and spent at 400 locally owned participating businesses. In its present form, BerkShares local currency is a sophisticated buy-local program, distinguishing local businesses from their global counterparts and building pride in Berkshire sourced goods and services. In the future, in addition to exchanging federal dollars directly for B$, the local currency will be placed in circulation through the making of productive loans. The loans will be required to meet the social and ecological criteria of BerkShares, Inc. as well as the financial criteria of the participating banks.
How Does It Work?Anyone in the Berkshire Region may spend BerkShares or accept BerkShares for payment. BerkShares can be obtained at participating bank branches in exchange for U.S. dollars at a rate of 1 USD per BerkShare. These federal dollars remain on deposit at the BerkShares Exchange Banks in order to allow citizens to redeem BerkShares for dollars at the same exchange rate. BerkShares can be spent at face value to pay for the goods or services offered by participating businesses—for example, 10 BerkShares can be used for a $10 purchase. Businesses are encouraged to continue circulating the currency with other participants; the business faces a 1.5% loss in revenue when exchanging back to federal dollars. As of March 2022, digital BerkShares are available through a mobile payments app. Visit www.berkshares.org for more information. There are 400 businesses in the Berkshire region that accept BerkShares. Use the BerkShares, Inc. interactive directory to explore where to spend your BerkShares. Learn more about using BerkShares, and discover what local banks are currently exchanging BerkShares.
HistoryThe back of each BerkShares note features the artwork of a different Berkshire artist. The front of each BerkShare features the portraits of a different local hero: a Stockbridge Mohican, civil rights activist and founder of the NAACP W. E. B. Du Bois, pioneering woman farmer Robyn Van En, writer and environmentalist Herman Melville, and beloved illustrator Norman Rockwell are all celebrated. BerkShares local currency come out of a long history of experimentation with local currency and models for increased economic self-reliance in the Berkshires. Here are some examples of currencies used in the early 1990s:
Local Currency Archives
In the Media
Politico: Western Massachusetts Challenges the U.S. Dollar (Spanish version available here)View all print and television coverage of BerkShares (international, national, and regional).