The Providence news. (Providence [R.I.]) 1891-1906, 1897-02-17
A. Place Where Checks
Only are Current.
Cooperation Scheme That Has
Proved a Big Success.
A Railroad Has Been Built and
Houses Will Be Next in Order.

proved more vexing than that of CO.
operative stores. SO easy in theory, so
difficult in practice. few OF the many that
have been started from tims 10 time With
great flourish of trumpets have succeeded
in struggling along for any length of
time. But California has evolved and put
into practice O new idea-s sort OF
general trade exchange, in which no
money 10 used-thst has thus far proved
satisfactory beyond the expectations OF
even Its most sanguine promoters. The
new enterprise is known as the Labor Ex-
change, and rs explained in the San
Francisco "Call,' Ii is not q merely local
affair, but 10 intended to be national in
its scope.
Its purpose is to employ every man who
has an opportunity to produce anything
by fnoing q market for the product-to
find some other man who wants the pro-
duct and who has someth hing to exchange
for Ii. IL 10 by this means that the use of
money Is dispensed with.
1t 10 worked In this way. A shoemaker,
for instance, wants a barrel of flour. lie
gets to work and makes q whole lot of
takes them to the exchange and receives
the -four. Ii he wants something that is
not in the exchange-for instance, IL he
wants new set OF teeth--he is given a
checx or checks Of the value of the pro-
duct he leaves there, and goss away to
some dentist who belongs to the exchange
and who therefore will accept the checks
for his work. The dentist is not required
to take the shoes in excbange,for bis work
the checks will be accepted at.the ex-
change for anything there in stock. Nor
IL the dentist even limited to this. These
checks are accepted by q score or more
other business houses in slmost every line
OF trade, SO widely has the movement
| spread.
so that Laoor Exchange checks are
| coming into general circulation aud serv-
Ing not merely as Q substitute, but in
! some respects as an Improvement upon
| money. They are an Improvement to the
| extent that they serve all the purposes in
| facilitating exchange without being SUB
| ject to taxation.
That question has been raised at Wash
ington-the institution has reached such
proportions as TO have forced attention at
Washington-and the Attorney General
declared that ipasmuch as-the checks
were not redeemable in legal tender they
could not be taxed.
No, that Is just the difference. Every
check of the Lator Exchange found In
circulation represents some product of
labor. They are redeemable in labor or the
product of labor, and nothing else. That
Is the whole scheme.
The leaders in the Labor Exchange
illustrates their theory or plan as we'll rs
anything can. The people OF the island
Of Guernsey felt the need of a big market |
place. They did not nave the capital to |
put up the necessary building, and 1t was |
proposed In their council to issue bonds,
send q commission to Paris to sell them |
and with the capital SO raised do the |
thing they desired. The Governor OF
Guernsey, however. was a long headed
fellow and something OF a new fang led
fpancier himself. He ssio:
"If you wish to build q market for the
French people that Is the very thing to
do. IL you wish to build a market for
yourselves II is very foolish thing"
"But how are we to build the market?"
said the Councillors. "We have no
money"
"You have plenty OF men to do the
work, have your"
"Oh. yes," there are many laborers who
need employment" they said.
"You have the timber necessary and the
stone and other materials on the island?n
"Ob, yes; plenty Of it,"
"1hen, why not go TO work and build
IL? You have all that is necessary. Why
go In debt TO the French people for what
you yourselves have? See, IL you borrow
the money to put up this building YOU
will have 10 do all the work just the
same, and when IL is finished you will
not own IL. More than that, you will have
to pay interest on the debt. That will
large part OF the revenues of
the building when finished, SO IL may
never be paid for. Instesd Of issuing in
terest- bearing bonds, which other people
will gladly accept, wny not issue notes
without interest and accept them our
selvesP The notes may he mado accept
able by the town for rent in the market
when 1t Is rssdy for business and in this
way will redesm themselves"
The governors advice was taken, tho
market house was built the notes circu-
lated at par during the process and af-
terward until they ell finally found their
way into the town treasury. Tho market
house had heen built ana paid for with
out the employment Of money or without
the payment OF one cent of interest.
This is the plan upon which the labor
Exchange Is working. IL has net with
great dinicul,ies, chief OF which is doubt
as to the possibility of getting it's scheme
on stable footing. AS IL grows this
doubt dissolves, of course, before the
proof furnished. Brsnches are being cs-
tshIished all over the country, and