In the Queen City We Trust:
A New Kind of Counter-Fit Money
By Jessica Rotkiewicz
A “slice” of Burlington Bread worth $10, designed by Burlington artist Sarah Ryan.
Kirschner believes people have good intentions; however, sometimes the money spent locally is then used in a corporate store and leaves the community. The unique feature about Burlington Bread is that it never leaves the county. According to Kirschner, there is approximately $30,000 worth of Burlington Bread in circulation today. Printing money in a community is legal, with two major restrictions: money cannot look similar to U.S. dollars, and there cannot be coins. Transactions made in the local currency are taxable and must be reported just like transactions made with U.S. dollars.
The inspiration for BCP’s launch was the success of “Ithaca Hours,” a local alternative currency in Ithaca, New York that boasts participation by 900 local businesses (see ithacahours.org). After about a year of planning, “Burlington Bread” was printed in black and white in 1998; in 2004, the currency was re-printed in color. The bills (or “slices” as they are referred to) show scenes in Burlington, created by local artist Sarah Ryan.
Kirschner and other BCP members have laid the groundwork for a localized economy boost, but Burlington Bread has yet to reach its potential and match the success of the Ithaca project.
“We’re not achieving our goal as of today, which is to be a force in the community that can help a localized economy to bring people together,” says Kirschner.
In addition to the challenges of having just one full-time employee (Kirschner), Burlington Bread has been a script system until now, using only paper money. This is satisfactory for small transactions, but limits larger purchases and impedes institutions or business that want to utilize this currency. Essentially, the BCP needs an electronic means to exchange money and it is exploring the idea of a Mutual Credit Clearing System.
“It’s very similar to a barter network,” explains BCP member Cara Taussig. “You would get credits that could be used for other things that are available on the system.”
For example, if a business takes a loan on the system and buys a service, then that business is agreeing to take back credits to pay for this service. According to Taussig, this keeps the overall system balanced; for every credit there is a debit. The difference between this system and traditional barter networks is that the latter are often privately owned and charge a fee to make a profit. The BCP wants to remain a nonprofit and will have to find a way to be self-sufficient, keeping it a community-run business.
“It definitely builds community connections. It shows civic engagement and pride when people use it,” Taussig maintains. “I think Burlington Bread can make a bigger impact if it works in synergy with an electronic system. That’s what we’re aiming for.”
Until the Mutual Credit System is established, some businesses in the area appear to have reservations about accepting Burlington Bread in full. Many, therefore, determine a percentage of Burlington Bread they will accept as payment in daily transactions. Businesses that currently participate use the money to pay employee bonuses, for example, or to buy other goods or services in the community. Kirschner hopes that in the future, a business could pay part of its utility bills or taxes with Burlington Bread. Today, Burlington Bread can be spent in about 12 “storefront” businesses and 38 others.
One business that accepts Burlington Bread as full payment for transactions is the Vermont Shortbread Company. Owner Ann Zuccardy wanted to attract more local business and thought it would be a great way to support the community. She believes people are more likely to buy from her if she accepts the currency in full. Her business is small, and mostly seasonal. If she were taking in thousands of dollars a day, she says, she isn’t sure that she would continue to accept full payment in “bread.”
“I’m able to sell to people who might not know about me because I’m a small business,” explains Zuccardy. “Likewise, I might not know about them, but now I do because they are involved with Burlington Bread.”
There are fewer benefits for larger businesses, such as City Market Onion River Co-op, which accepted 20 percent payment in Burlington Bread last year, according to Jodi Harrington, City Market’s marketing and community relations manager. Harrington reports that the store accepted bread for about a month and then stopped because it had no use for it.
“The problem was never us acquiring Burlington Bread,” says Harrington. “The problem [was] having nothing to [then] do with it; we [couldn’t] get rid of it.”
City Market found they couldn’t pay their employees, vendors, or small farmers with the currency. Harrington notes that running a business requires cash to pay utility bills along with vendors and employees. “We couldn’t just collect money that is unusable to us. I think we actually just ended up giving it away.”
Harrington explains that City Market was unable to purchase other commodities with the currency, and this is the area that was weak. If people and businesses were able to use the currency elsewhere for utility bills and other necessities, then perhaps City Market would consider trying it again.
“I think it’s a wonderfully idealistic thing, but I think we can all do more in our community,” Harrington maintains. “We can do more with the currency we have. I don’t think the problem is our currency – it’s how you choose to spend your money.”
For more info, see www.burlingtoncurrency.org.
Jessica Rotkiewicz is a freelance writer and photojournalist who lives in Burlington.
Adding Some Yeast to the Dough…
In January 2006, the Burlington City Council passed a resolution regarding the Burlington Currency Project, supported unanimously by the Community Development and Neighborhood Revitalization Committee, excerpted here:
WHEREAS, recent research at UVM found that the use of complementary currencies has grown significantly, but that they have had limited success due primarily to the lack of participation by major institutions;
NOW, THEREFORE, BE IT RESOLVED that the Burlington City Council recognizes the work of the Burlington Currency Project and appreciates the potential value for local economic development from expanded use of complementary currency systems;
and BE IT FURTHER RESOLVED that the City Council directs the Community Economic Development Office and other City offices and departments (e.g., Treasurer’s Office, Legacy Project office, BED, Burlington Telecom and City Superintendent to Schools) to meet with representatives of the BCP and other interested parties to consider how the City may be able to participate in and maximize the opportunity for expanding local trade through complementary currency systems such as a mutual credit clearing system and to investigate approaches to support and cooperate with this endeavor;
and BE IT FURTHER RESOLVED that the Community Economic Development Office be encouraged to assist the Burlington Currency Project in bringing together other institutional parties in the City (e.g., UVM, FAHC, BED, BHA, BCLT, etc.) to discuss opportunities for expanding local trade through such a mutual credit clearing system and to investigate approaches to support and cooperate with this endeavor; …
Maybe it’s unlikely to think that in ten years a Vermonter can walk into Fletcher Allen, slap a pile of slices down and say, “Hey, Doc, I need you to take care of this hernia problem I have…” Right now, however, anyone can use Burlington Bread for much more than just getting a Chakra healing or have Fido taken for a walk.
These are just some examples of the more than sixty participating businesses throughout Chittenden County that “trust in each other,” as the BCP motto states:
Optometrists, pet care providers, ecological cleaning services, translation services, transportation services, civil engineers, lessons in cooking.
Want someone else to cook? Drop your bread at American Flatbread, Café Piccolo, Sugarsnap. Have your cake and eat it too at Mirabelle’s.
Want to make your own bread? Kiss the Cook will accept your slice. Arcana and Gardener’s Supply can help you obtain ingredients. You might find a tantalizing cookbook at the Book Rack. And when you need a new kitchen to keep pumping out those loaves, imagine bringing your bag of slices to architect Juliet Landler and paying for an addition with Burlington Bread!
Hey, it’s working in Ithaca…
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