Ed,
Did you happen to notice this story in Ardmore, Philadelphia?
http://www.philly.com/philly/busines...xzz0qB L3JjVP
PhillyInc: Ardmore is printing its own money to foster local consumer spending
Ardmore's experiment with its own local currency will be more than just a summer
fling.
Four community banks have agreed to contribute a total of $10,000 to fund a
return of Ardmore's Downtown Dollars for the holiday shopping season.
Beneficial Bank, Bryn Mawr Trust, Firstrust Bank, and St. Edmond's Federal
Savings Bank each agreed to commit $2,500 to subsidize an unusual effort the
Ardmore Initiative business improvement district launched this spring: printing
its own paper money in denominations of 10 and 20.
Last winter, the nonprofit group was looking for a way to get consumers to spend
more money in the Lower Merion community's shops, restaurants, and other
businesses. It came up with the idea of a local currency that consumers can buy
for half the face value.
The Ardmore Initiative provided $5,000 from its budget to launch the initial
batch of Downtown Dollars on May 3. However, demand outstripped supply, and the
group wound up selling out of its initial allotment of currency in a matter of
minutes.
The group spent an additional $2,500 from its budget to print more discounted
"scrip" so that it had currency to sell at the spring events it sponsors.
But more interesting than the selling of a local currency is how consumers will
spend it.
Of the $15,000 in Downtown Dollars in circulation since May 3, only about $2,900
has been redeemed, said John A. Durso Jr., a vice president at St. Edmond's and
chairman of the Ardmore Initiative.
Participating merchants have to convert the Downtown Dollars they receive back
into U.S. currency. When they do, the Ardmore Initiative staff reviews receipts
to see how the program may be affecting sales. As of Friday, the group said, the
$2,900 redeemed was involved in $3,565.55 worth of sales.
Less than half has been spent at restaurants, Durso said. Downtown Dollars have
been showing up in the cash registers of thrift shops more than any other type
of retailer so far, he said.
But there's a long way to go. The local currency carries an expiration date of
90 days from point of purchase. So the last Downtown Dollars sold June 6 will
expire Sept. 6. And Durso suspects that some people may wait until the last
minute to spend their Downtown Dollars.
When the program returns in November, the currency will be stamped with a Dec.
24 expiration date, Durso said. The goal is to jump-start holiday shopping
between Nov. 15 and Dec. 24 - a time when shoppers usually pack the malls and
avoid the retail centers of many small towns.
But that's a tale for when the weather's frightful, not delightful. Right now,
Durso said he's "thrilled" his fellow community bankers have agreed to donate
and expand the local currency program.
--
Richard Lamb