Interview with The Gorge Local Currency Cooperative - RiverHOURS
Patterned after the successful Ithaca Hours in New York, the RiverHOURS Team takes their local business very seriously. The local community has worked hard over several years and made their community currency a local success.
River Hours is a vibrant community currency for the Columbia River Gorge area. Patterned after Ithaca Hours, member of this community feel their currency project has had a great deal of success in the years it has been in operation. Marketing for River Hours is primarily done through the Trade Publication which is in wide area distribution and printed 4 times a year.
This is my interview with the team from River Hours. Answering questions is Mr. Bruce Bolme, Rebecca Stonestreet and Scot Bergeron. All three are members of the steering committee. You can find more info on each person on their web site http://www.riverhours.org/steeringCommittee.php
When did River Hours fist enter circulation?
Our first local currency was issued in the fall of 2004. A group of interested citizens in the surrounding communities of the Columbia Gorge held an organization meeting in mid 2003. Weekly meetings for the next year created an all volunteer organization that produced a membership cooperative as a project of the Columbia Gorge Earth Center http://www.cgec.org. We began selling one year memberships in July 2004 with a start date when the first trade directory was published. Income from memberships provided the money to print the currency and first trade directory which was issued in May 2005. Each trade directory issue lists the coop members, what they offer or are looking for, small display ads, and interesting articles generally related to local currency and the economy. Coop memberships cost $40 per year.
I'm really curious to know the day to day products which can be purchased with River Hours. Can you list for us 10 products or services which are available each week that I would otherwise buy with national currency?
Auto repair and maintenance, basic handy-man services, counseling, food, adult medical care, web site design and development, music (three piece band), invasive weed removal, custom framing, hand woven textiles. Please go to our website for a more extensive list of services and products.
Do you know any local businesses that pay their employees in River Hours (in full or partial)?
We do not know of any.
I've often read the classic description of a local currency, local trading system or scrip which goes something like this, "We have jobs that need doing and people qualified to do them, we are just missing the money." In the case of local paper currency, this common description may have been a more appropriate idea back in the depression era. Today's Community Currency seems to mean more 'buy it local and keep the dollars circulating'. Do you have any sort of programs which take a look at the community and asks, "if you are unemployed or underemployed and would like to work...come here and we can pay you in River Hours"?
We do not have such a program in place as of yet, but it is a great idea! Come on out and implement it for us! In other words, there are 8 of us on the GLCC Steering Committee, all volunteers, who have lives of their own. We are still in a place of trying to educate people about local currency let alone getting programs out there like the one you suggested. That being said, because of the national economy going down like it is and county governments in trouble, we might see a program like that in the near future.
From your web site, I find the Columbia Gorge Earth Center and the Gorge Local Currency Cooperative (GLCC). Can you tell us how your organization is structured?
The GLCC is a volunteer organization that produces a membership cooperative. We are not a 501(c)(3). We have a Memorandum of Understanding with the Columbia Gorge Earth Center which does have its 501(c)(3) status. We are considered a "project" of the GCEC.
I read in your FAQ section about inflation or deflation. What events or local indicators would trigger the addition of more currency into circulation?
More currency is issued into circulation when a new member joins RiverHOURS. To join RiverHOURS, a member pays $40 FRN which pays for advertisement in the Trade Directory for a whole year. We then issue that member 4 RiverHOURS. When a member renews their membership, they again pay $40 for advertising in the Trade Directory and we issue them 3.0 RiverHOURS. We have more than 80 current members and about $19 thousand of local currency in circulation. Each one of the Steering Committee members in is contact with a member when it is time to renew. We ask them then how things are going with using RiverHOURS to get a feel of how the RiverHOURS are circulating.
If I started a local currency modeled after River Hours, would my goal be to be provide jobs or would a good goal be to better utilize local resources through bartering?
Local currencies do not have to have just one goal. We would say that providing jobs and better utilizing local resources through bartering are just two goals of RiverHOURS. We have more goals than those two listed.
Do you have any local programs which provide loans or grants to deserving people or for community projects?
Yes, we have provided loans for members of RiverHOURS. We gave a small loan to a business which sells fair trade products from around the world. They used their RiverHOURS loan to fix up their store. They also used the local currency to hire an accountant. We do not charge interest on our loans. We are not out to make money like banks are.
I ask this because I see on the T.V. news tent cities of unemployed and homeless people now springing up in places across America. If those areas had a local currency would its function be to provide those people employment or does your currency not really work that way?
It can work that way, it's just that you have to get people on board for it all to work. It takes a community for a community currency to work. It doesn't just take the unemployed or homeless. You need spending loops for it to work. If you gave a homeless person some RiverHOURS, he could spend the RiverHOURS buying food, but then how does the homeless person then earn RiverHOURS in return so he can then buy more food. We had a situation in Hood River where a local grocery store could spend their RiverHOURS on rent. The person receiving the rent spent their RiverHOURS on piano lessons. The piano teacher bought her groceries at the grocery store. See, the local currency circulates from person to person. The currency stays local. It stays in the community. It takes a dedicated community for local currency to work.
Do you feel that the local currency has expanded your tourism business any or brought additional positive attention to your area?
Not really, but we do get lots of request for our currency from money collectors! And, in 2007 a documentary on local currency called The Money Fix featured RiverHOURS. The Money Fix was produced by the documentary film maker Alan Rosenblith from Portland, Oregon.
I see you publish a quarterly Trade Directory which is freely distributed at local establishments throughout the area, and you list those distribution locations online. Do listings in the Trade Directory generate the main sources of business for users?
I think it depends on the business. It is difficult to track.
Does your organization offer store type stickers which show visitors "We Accept River Hours"?
Yes, they put RiverHOUR stickers in their windows, or displays on their counters, or go through word of mouth.
Is there any way to convert River Hours into U.S. cash, like an exchange business?
Yes, sometimes when a business gets too many RiverHOURS, you can go to that business and tell them that you want to buy some of their RiverHOURS. You pay them $10 FRN (cash) in exchange for 1 (one) RiverHOUR. It can go the other way too where if you pay a business in FRNs and ask for change in RiverHOURS.
Do any of the businesses accepting River Hours experience such a large influx of the local currency that they have to say 'no more' at this time until we spend some? Does that happen often?
Yes, it has happened. Food is big, so the local grocery store had to cut down on the percentage of RiverHOURS that they take in. You see a business has total control over how much they will accept in RiverHOURS. One local coffee shop accepts 1/10 RiverHOUR (which is equal to $1FRN) for each purchase. Another store a few doors down accepts 100% RiverHOURS for any of the clothing purchases. Our local used building material store got too many RiverHOURS and had to cut back all the way. But it does not happen often because there are people in the community that really "get" the local currency thing and know they need to spend their RiverHOURS in a variety of businesses and services. It is important for any local currency system being designed by a community to find businesses that supply food.
Can I buy food products with River Hours?
Yes you can. You can buy food from the Gorge Grown Food Network [www.gorgegrown.org] farmer's market, local grocery store and from several restaurants.
We would like to know more about the circulation of the notes. Do you have a weekly or monthly potluck dinner? Do you create events or meetings to help facilitate the spending or demand for the currency?
We have had a few potlucks, but not a lot of members attended. Now we have potlucks for our monthly Steering Committee meetings! ;-)
Are there any other trade groups in the area in competition with River Hours? Are there similar barter groups operating on a large scale in your area such as LETS?
There are some trade groups and barter organizations in Portland, but nothing that I am aware of locally. There are "Chamber Dollars" for various Chamber of Commerce in the area, but once you spend a chamber dollar, it goes out of circulation.
If I lived in your area, used River Hours and needed to purchase something from Seattle or another non-local city, do you have any reciprocal arrangements with other communities? In other words, our community agrees to accept your local money if you accept ours in Seattle? Is there such a thing?
The bigger picture is to get an even wider local currency which would include Portland and eventually all of Washington and Oregon. But we don't really talk about the expansion much because we are still trying to get our own community members to accept RiverHOURS. We have a long way to go. Portland is starting their own local currency as far as we know. There is a possibility of a merger down the road with them.
Are the designs on the notes based on a local artist's work? Who designed the notes for you?
Yes, a local artist helped design our currency. But the whole Steering Committee had input on the design as far as color, graphics, the salmon, oak leaf, and osprey, etc.
In your years in operation, how many times or how many series of notes have been printed?
We have more than 80 current members and about $19 thousand of local currency in circulation. There are three denominations of bills. Our initial printing of all three was in 2004. Our second printing in 2005 included all three denominations. Our third printing in 2006 was for only the 1/10 RH denomination. Our fourth printing in 2007 was for the ½ and 1 RH denominations. Our fifth printing in 2008 was for only the 1/10 RH. Each printing is for about 500 bills.
What company handles your printing and would they be open to receive more of this type of work if readers asked, "where can it get my notes printed"?
A local printing store does our printing. You would need to ask them if they would be open to receive more work printing currency. For inventory control we use two printers to produce our bills, both located in The Dalles, Oregon. I am sure they would be willing to print currency for any organization. The way we do it is the first printer prints the bills on 8-1/2 by 11 sheets of imported paper that we provide. We deliver those sheets to the second printer who shears them to size and adds serial numbers.
Do you have an opinion on how the Federal Reserve and US banks put money into circulation as debt? In other words, your local currency is backed by labor which is a tangible asset adding value and worth to the community. USD Federal Reserve notes are created when the bank issues a loan, USD enters the world as debt. Do you have an opinion on this topic?
The introduction of privately owned banks printing and issuing money for the United States as was done with the Federal Reserve Act of 1913 will ultimately result in the economic collapse of our nation which we are witnessing right now." Bruce adds, quoting from Ben Gisin, veteran banker “Lenders and borrowers, by virtue of how they invoke debt when creating and distributing money, have saturated the national economy with what the Fed reported on 3/12/09 was $52.6 trillion of debt.” Obviously, this is a huge burden on the national economy and is not sustainable.
You offer a very good web site with lots of detailed information and transparency. I like it a lot. Can you tell us more about the duties of the GLCC Steering Committee?
We have a Facilitator which facilitates the Steering Committee meetings. We have a Scribe which takes the minutes at each meeting. We have a Steward which does all the treasury duties. Except for the Steward, we have all done the other two duties. We are a consensus board and it has been a true pleasure being on the Steering Committee. Very bright and passionate people on the Steering Committee.
In the process of creating your currency from day one, when was the GLCC Steering Committee formed?
I would guess that the GLCC Steering Committee was formed when we got down to writing the GLCC By-Laws. When we first starting meeting, we mainly talked about the currency, how to issue, what denominations, and then we got to writing the By-Laws and that was then that the Steering Committee was formed.
Your mission statement from the bylaws reads:
The Gorge Local Currency Cooperative (GLCC) seeks to create and sustain a local currency system in order to build community, promote regional economic independence, support local business and trade, encourage entrepreneurship, honor diversity, and enhance the local minimum wage in the Mid-Columbia region.
I know that when I move to a new area, it's often very difficult to meet people. Can you provide us with examples of how River Hours have helped to build more community trust, goodwill and interaction between users and neighbors?
You should watch The Money Fix and see the interviews with RiverHOURS business people. Hearing it from their lips will be have more impact on you. It feels different to spend your money with a business which takes local currency. In essence, by doing so, "you are saying I believe in this community and I want to see it thrive." The Mount Adams Chamber of Commerce, a coop member, includes a copy of our trade directory in each of their relocation packs that they send to people considering moving to the gorge.
What products do you buy locally with River Hours that you may have previously brought in from outside the area and purchased with USD? In other words, can you give us specific examples of how using River Hours has promoted regional economic independence?
We are promoting regional economic independence, but that doesn't mean that we have reached regional economic independence.
I'm not familiar with the Columbia River Gorge region but I see on the map how you encircled the region which shows the area of usage. (Mid-Columbia region and, in particular, the geographic region included within a thirty-five (35) mile radius from the Interstate Bridge between Hood River, Oregon and Bingen, Washington.) Aside from the geography of the area, what were your factors in determining where the currency would be used?
It included the major communities in the area.
How come your model is not a 70 radius or a 15 mile radius?
Because we wanted to include those major communities in the Gorge bioregion, and the number that fit was 35 miles. We did not want to start too big or too small. The 35 mile radius is only our distribution and advertising target area. But that doesn't exclude people living outside the 35 mile radius from using RiverHOURS.
Gandi said, "Be the change that you want to see in the world." However, it's very hard to create change on a large scale or with a wide audience in America. From reducing everyday pollution to using less oil and even something as simple as buying your produce from a local grower, these changes are difficult to effect with mainstream American. Consequently, all that your community has accomplished and all the positive changes you have achieved with River Hours do not put even a small dent into the one days sales of Wal-Mart USA. Average consumers will still drive 30 extra miles to buy cheap Wal-Mart goods from China and vegetable imported from Chile then take it home in 2 dozen plastic bags which get thrown out. Your area's efforts won't change the way all American's live so why do you even try? Why not just use a charge card, save money at Wal-Mart and leave 'change' up to the government?
We are not trying to change all of America. We are trying to create local regional economic sustainability. When the TV controlled and media mushed minds of Americans fall prey to the collapse of our nation, we will have in place a means of facilitating the trading of goods and services locally.
I've tried to explain the concept of local currency to 'Average Americans' and 99 out of 100 can't conceive of why they would use a local CC over USD, even just a few times a month. I hear comments like, "why shop local, it's more expensive, there is no parking and the stores are not open late". What's it going to finally take for the average American to wake up? What caused you to use the local money, what is the actual reasoning behind your choice to spend River Hours instead of USD?
It is Scot's belief that "It will take at least three weeks of going hungry for the average American to wake up. When they do wake up and start causing trouble, they will be escorted to FEMA camps and exterminated or put into slave labor. Rebecca is not sure how to wake people up. It comes from within. Maybe with the economic downturn, people might start waking up? Bruce here…I am talking with marketing experts to get ideas how to market a mind-set shift or paradigm shift from ME thinking to WE thinking. That seems to be a prerequisite for people to “get it” and realize the value of using local currency specifically and community building in general. People in Fargo, ND recently shifted from ME thinking to WE thinking because of a natural disaster. It probably will take an economic disaster just as big and up close for many people to make the shift to WE thinking. We think that economic disaster is on its way and soon will be close enough to trigger the paradigm shift. It happened in the great depression.
I'd like to thank the entire RiverHOURS Team for taking time to answer my questions.
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