Story Keeley Harding

Photo Kat Miller

Federal dollars are meant to be scarce to ensure their value. Local currencies, however, use region-specific money not created by the U.S. government. They find their value in people. Most local currencies use time-dollar systems in which each bill directly represents a person’s time. This system removes the obstacle that arises when each trader must have something the other wants, whether it’s a massage, a portrait painting, or a haircut.

RiverHOURS, launched in Hood River, Oregon, serves the Columbia River Gorge in Oregon and Washington.

The bills are divided into three denominations: One HOUR equals $10, one half HOUR equals $5, and one tenth equals $1. Several local stores take different percentages of HOURS and members advertise in the Trade Directory. Today, there are more than eighty members and about $19,000 worth of local currency in circulation. 

A person doesn’t have to be a member to receive and spend these beautifully designed local bills. One HOUR uses a colorful image of a salmon, and “In one another we trust” appears in both English and Spanish at the bottom. These bills can be passed between anyone in the community.

Another system, HOUR Exchange, is based in Corvallis, Oregon, and serves all of Benton County. Here, each HOUR is worth $10, and bills come in three smaller denominations. Members pay yearly dues in exchange for HOUR bills, and listings appear in the HOUR Trader. HOUR Exchange supporters work to expand their local money supply by promoting local economic independence.

This spring, the Time Bank in North Portland broke its record for the most community involvement. The Time Bank, a different system with similar values, is based on the idea that everyone has something to contribute. For each HOUR members spend providing a service for others, they earn one Time Dollar to spend on another’s service. The online network of exchanges runs through a computer software program.

The crucial concept to understand is that local currency and Time Bank credit are extra values to be spent, not saved. Since this value never leaves the community, it benefits the local economy while simultaneously encouraging entrepreneurship and creativity.