Tenino's Wooden Currency- Step for Liquidity Boost

Tenino is a city in Thurston County Washington, United States. As per the census in 2010 the population was 1695 people only. According to the Wikipedia its estimated population was 1875 people in 2018.

With the coronavirus pandemic plunging the United States into a recession, decimating small businesses and causing job losses across the country. Some local governments are looking for innovative ways to help residents.

WOODEN MONEY

Five weeks into Washington State's lockdown, Tenino (with a population of less than 2000), started printing wooden money in April 2020 to be used as a local currency.

A small town museum tucked away under lock and key in a former railroad depot in the US state of Washington, a wooden printing press cranked back to life to mint currency after nearly 90 dormant years.

It is the worst recession scenario since 1931. In 1931, the only bank in Tenino, Washington was closed. To stay afloat, local leaders took a decision to print their own wooden money. Similar decision has been taken by authorities again. They are using the 130-years-old newspaper printer for printing. According to the Mayor Wayne Fournier, the revival of the local currency is one of the solutions to manage the current crisis in Tenino.

The end product: A $25 wooden bill (money) bearing the town's name - Tenino - with the words "COVID Relief" superimposed on the image of a bat and the Latin phrase "Habemus autem sub potestate" ( Which means-'We have it under control') printed in cursive.

$300 A MONTH PER PERSON

Anyone with a documented loss of income as a result of the pandemic is eligible for up to $300US a month of the local currency.

Businesses of the town's quaint Main Street, accept the wooden money for everything except alcohol, tobacco, cannabis and lottery tickets. Tenino's city government backs the local currency, which merchants can exchange for U.S. dollars at city hall at a 1:1 rate.

Susan Witt, executive director of the Schumacher Center for a New Economics, a Massachusetts-based think tank, said alternative currencies like Tenino's banknote are better than direct cash payments at boosting local economies.

AGE-OLD COURSE OF ACTION

The wooden money is not new for Tenino. This tiny town founded around a sandstone quarry achieved national prominence in 1931 when civic leaders printed a wooden local currency to restore consumer confidence after the town's bank failed during the Great Depression.

The mayor brought the idea of resurrecting the town's legacy project to the city council as a way to provide economic relief to businesses and residents suffering as a result of lockdown measures to slow the spread of COVID-19. In April, councillors approved the proposal to issue up to $10,000 in local scrip.

So far, 13 residents have successfully applied for the funds and some $2,500 worth of wooden bills have been issued. According to the Mayor, with donations the availability of the funds has increased to $16,000.

REVIVAL INITIATIVE

Mayor is of the opinion that this project is one of the initiatives for small towns and cities. They must take upon themselves to survive amid coronavirus outbreak.

Mayor Fournier pointed, that the Federal Pay-check Protection Program (PPP) is a fund of forgivable loans. It is designed to keep businesses afloat through the pandemic and is not scaled for the businesses in Tenino that have just a handful of employees.

A Federal program dumps money from the top and blue-chip companies become the main beneficiaries. From the outset, the unprecedented first-come-first-served PPP program struggled with technology and paperwork problems that led some businesses to miss out while some affluent firms got funds they did not necessarily need.

But, for now, according to Susan Witt, Tenino’s project is an effective way to empower a community being brought to its knees by factors beyond its control.

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