Philadelphia's Equal Dollars complementary currency has decided it won't be so equal any more - at least with the U.S. Dollar.

The central banking committee of the 12-year-old Equal Dollars system says it will no longer match the value of the community currency to the Federal Reserve dollar, as of January 2011.

The reason? The government greenback's continuing erosion in worth, due to inflation and other effects of U.S. monetary policy.

"The principle underpinning of Equal Dollars is its stable value, year after year," said Bob Fishman, chairman of the currency's central banking committee and CEO of the currency's sponsor, national human-services nonprofit Resources for Human Development. "While the U.S. Dollar fluctuates in value over time, gradually losing purchasing power, the Equal Dollar will remain balanced: What you bought with Equal Dollars yesterday, you can buy tomorrow at the same price."

The "equal" in the community currency's name refers to the community's agreement to pay the same fore everyone's labor, Fishman said, and was never intended to describe its relationship to the U.S. dollar.

Even so, Equal Dollars has never undergone a revaluation until now.

"We realized we needed to reaffirm Equal Dollars' purpose of providing stable value over time," said Deneene Brockington, director of the Equal Dollars system. "Other currencies, including the U.S. Dollar, may have valid reasons for fluctuating their worth, but Equal Dollars are meant to represent the same value year after year."

In January, Equal Dollars will increase it value relative to the U.S. Dollar by 3 percent. That means that a member with 1,000 Equal Dollars in their account, for example, will see 30 more Equal Dollars as a result of the revaluation. Conversely, a member who owes 1,000 Equal Dollars will experience a 30-unit adjustment that results in a new debt of 970 Equal Dollars.

Equal Dollars accounts, whether money on deposit or loans, are interest-free.

In addition to the 3 percent revaluation, the currency's banking committee also is setting a "minimum wage" of 12.40 Equal Dollars per hour of labor.

"We needed to be clear about the minimum value of somebody's time," Brockington said. "We weren't aware of any abuses, but we want to make sure there aren't any going forward. It's a preventative measure that reaffirms the respect and dignity that everyone in the community deserves."

Brockington said that while the January adjustment is the first in the currency's history, it won't be the last.

"We're going to do this every year, if necessary, so that the worth of Equal Dollars in 2010 is the same in, say, 2030 and beyond," she said.

Equal Dollars boasts nearly 600 members and 20 organizations. Nearly 200,000 Equal Dollars are in circulation.

About Resources for Human Development
Resources for Human Development is a comprehensive human services organization based in Philadelphia, Pa. Its mission is to empower the most vulnerable and marginalized members of society as they build the highest level of independence possible. RHD oversees and supports more than 160 locally managed programs in 14 states. These innovative and effective programs specialize in helping people who have mental illnesses or developmental disabilities, homeless individuals and families, people rejoining society after incarceration, and people with histories of substance abuse so that they may all build better lives for themselves, their families and their communities.

Resources For Human Development

Resources For Human Development

RHD is a 165m corporation operating in 12 states with 3800 employees. It also owns a number of for profit corporations and a venture fund.

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