SOUTH BEND — It's a new approach to boost local sales: using local currency. It sounds like a gimmick, but one local group thinks it just might work.

It's tentatively called "Michiana Money." Organizers of a new grassroots movement to print it say it's an opportunity to keep more "real" money in the local economy and, maybe, put some people back to work.

Heath Hiatt says it's raining "recession" at his "Ugly Mugs" coffee shop in downtown South Bend, but he has a new hope that business won't
grind to a halt.

"If we can be going forward in a recession, hopefully when this whole thing turns around, we'll all be in a pretty good place," said Hiatt, Ugly Mugs Coffee Shop owner.

They're modeling the plan after a program in Ithaca, NY. Notre Dame sociology professor Jackie Smith and group organizer Karl Hardy think it could work here, too.

"I think people are very intrigued by the idea. I think that sometimes it just takes a little explaining for people to get their head around it," Hardy said.

The concept is simple: get a bill from a retailer that agrees to accept local currency, and pay for it just like you would with U.S. dollars. That business can then use the local currency at other local retailers or to supplement employee's pay.

But why would they bother when dollars work just fine right now?

"They're going to see it as a way to build return customers and be a part of a local community," Hardy said.

Local barter systems have been used since the revolutionary war, but they really gained steam in 1991 in Ithaca. Some people in that town needed a job, others needed jobs done.

"So we though, if the only thing missing is the money to connect those people, then that's easy. We'll just print our own!" said Stephen Burke, Ithaca Hours Board of Directors President.

Since then, more than three million dollars worth of "Ithaca Hours" have circulated through nearly 900 businesses. From babysitters to 4-star restaurants, every single one is spent locally.

Hardy and others are convinced the same system could work here if people like Hiatt jump on board.

"I'd be open to it. I like the idea!" Hiatt said. "Why not try it?"

Of course, setting up a "local currency" isn't quite that simple. There has to be enough people and businesses willing to use it to actually give the currency its value.

Organizers like Hardy are convinced support is building. They hope to start printing "Michiana Money" this fall.

For more information on the Michiana Currency project click the following link: http://www.michianacurrency.org

For more information on the Ithaca Hours project click the following link: http://www.ithacahours.org/