Town prints own money to boost local spending
With all the talk about “Buy Canadian” and “support your local vendors,” there are really few incentives for us to actually do it.
The crude realities for Canucks: many items are cheaper online, cheaper at Walmart and cheaper in the States.
Yet one small town is battling back against the Big Bad Commerce Hijackers. One small town isn’t going down without a fight.
I came across this neat story out of Pennsylvania the other day, about Ardmore – a village of around 12,000 just northwest of Philadelphia – and its pretty unique efforts to boost the local economy.
With the help of some community bank donations, the town has taken to printing its own money (Downtown Dollars, as they’re known) and selling the denominations for half-price to foster consumer spending within the city.
So, for example, an Ardmore resident could buy 20 Downtown Dollars for US$10 that can be used at many of the town’s shops, restaurants and clothing stores. Quite an incentive, right?
Right?
Turns out, the initiative hasn’t yet been the hit it was designed to be. Of the 15,000 Downtown Dollars printed, only 2,900 have been redeemed, according to Philly.com, a sign that either Ardmore has the worst stores and eateries around, or the word simply hasn’t gotten out yet.
But let’s give this experiment a little more time.
The idea is ingenious, if nothing else, and it makes you wonder how many Canadian towns could adopt this enterprise as a means to fend off the big box, chain retailers.
Officials in large commerce markets like Toronto or Montreal wouldn’t need such a plan, but what about tiny Canadian outposts or – more likely – border towns? Couldn’t they benefit from incentives that’d keep its residents from hopping into the U.S. for a quick grocery run or car tank fill-up?
What do you think? Could a town printing its own money ever catch on and promote more local spending? Would you spend more in your city if there were such incentives?
By Jason Buckland, MSN Money
Posted by: Lisa | Jun 10, 2021 10:58:54 AM
I think it's a great idea. As long as the merchants can all get on board with the redemption process.
Posted by: melissa | Jun 10, 2021 11:09:38 AM
Its not the only town to do it!
Our town has done that too.
The rebuild of the bridge here in town cut off the down town area from most of the houses. So to encourage people to make the longer drive around by highway to get down town, the town printed their own money.
Posted by: HRF | Jun 11, 2021 1:14:34 AM
So, 20 "Downtown Dollars" is worth 10 normal dollars, but you can still buy an item worth $20 with it? That's confusing. Who's compensating for the loss? The stores will either have to up the cost of their items in order to balance out, or is city hall covering the other half? That could then raise taxes... It sounds like a cute idea, but I'm confused as to how it's going to really help their economy.
Posted by: allan | Jun 11, 2021 6:17:16 AM
I think this is an absolutely fantastic idea. I would definitely participate in something like this!
Obviously it will end but it definitely promotes people trying local shops and restaurnats.
How often have I bypassed local restaurants and not stopped in and I am sure there are
great shops and restaurants in most areas. The other thing I love is when the main street is
shut down for a weekend to cars to promote people walking around and often people will try
a shop for the first tinme rather than by habit driving to Walmart instead.
If I lived there I would grab a few hundred right away just for the restaurants. What the
hell why not try something different than the regular where you order the same things and your
biggest decison is whether you want to be supersized. Some local shops may not have the
Walmart greeter dressed in blue but I am sure they want the business and will be friendly just the
same!
Posted by: Fiat currencies are dying... so why make more? | Jun 11, 2021 7:50:58 AM
As major fiat currencies are dying and investors are fleeing to gold instead, why not use something that has inherent value like a precious metal. Paper currency is worthless without agreement. This is why that system has not caught on as well as planned.
Posted by: John Doe | Jun 11, 2021 7:52:29 AM
Check out "Salt Spring Dollars" (Salt Spring Island, British Columbia) for a successful working model of this. I believe Calgary tried a similar thing a few years ago as well.
Posted by: Dave | Jun 11, 2021 8:04:42 AM
This has been done many times over by many small towns at fair time etc. It never has the impact that you would think. In many cases the "money" is kept as a token in a collection forever.
It also reminds me of Canadian Tire Money. Now that is smart!
Posted by: Shane Hubenig | Jun 12, 2021 1:06:53 PM
I lived on saltspring 3 years and own a retail store. I have not scene a saltspring dollar, have not had one person ask about them or try to spend them. It was a tourist gimick, and a fairly effective one considering how well known saltspring dollars are.
As a retailer I like the ideal, and support local currency, I just do not beleive the math works as the small town example works, nore do I see them as ever being more then a passing fad. The world is getting smaller, not bigger, and people want and need full finincial mobility, and local currencies just do not do that well sadley
Posted by: r ramjet | Jun 12, 2021 4:04:23 PM
didn't Henry Ford do this in a particularly ravaged part of detroit back during the Depression??
he did it with great success, i believe.
Posted by: Nabi | Jun 13, 2021 2:15:38 PM
Just a scam to get your real money. Some people have lost millions on similar schemes.
Posted by: Peter Jackson | Jun 15, 2021 1:01:41 AM
The Downtown Business Improvement Area in Seaforth, Ontario is entering into the second year of its "Smart Money" program in which locally-produced scrip can only be spent with local merchants -- a great idea which met with rousing success in its inaugural year of 2009.
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Posted by: Tanya | Jun 24, 2021 11:30:48 AM
This is an interesting concept but might not work in all towns depending on the size of it and how close it is to other larger towns/cities that have more selection to choose from. HRF also had a good point above about the conversion rate of being able to buy an item for $20 town dollars but only spending $10 real cash.