The representative. [volume] (St. Paul, Minn.) 1893-1901, 1897-01-27

THE LABOR EXCHANGE.

An Explanation of Its Work ings. by J. M. Han
son President Branch No. SO St. St. Paul,
Labor Exchange
Editor Representatives:
The Labor Exchange Association
takes as its foundation principle the
fact that all wealth is produced by la
Dor applied to natural resources. 1t
also assumes that every man who is
able and willing to produce anything
OF value to society is entitled to liv-
ing. That he does not, under the
present order, always succedd in so do
ing is recognized and hence the need
OF the exchange.
There are abundant resources and
plenty OF labor to produce enough to
supply the needs OF all, but owing to
the want of sufficient legal tender
money, these factors in production
and distribution cannot be brought
while there is abundance on every
hand. The Labor Exchange puts the
Unemployed to work and issues them
checks based upon the value they
create. This check represe n Is that
SO much value in commodities, is in
transit from the producers to the
consumer. 1t may also represent that
so much permanent wealth, in the
shape or house, shop. store or ma
chine has been created through which
the wants OF the members can be sup
piled more advantageously. The pro-
ducts and the checks always balance
so there can be no stringency in this
medium. 1t is not subject to the
fluctuations Of an intrinsic value me-
dunn and so it performs the true
function Of money.
Idle men in our cities are starving
who should be employed in making
clothing, supplies and machinery
which the farmers need. The farm
ers are going in rags and without ma
chinery while unable to get rid of the
teaming products Of their farms, at a
living price. 1t does not take phil
osopher to see that this state of things
is radically wrong and to see where
the trouble lies. The root of the evil
lies In our monetary system, and in
the wrong adjustment of values be-
tween the different parties engaged
in the production and distribution of
wealth. Ii each man received his
just share, products would move rapid
ly, the market would be kept clear,
and every man would have the pur-
chasing power to procure those things
necessary to his we'll being. Now, Ia
Dor receives in wages less than 40 per
cent of what it produces. The labor
ers are the large consuming class
therefore the wages paid to labor rep
resent, approximately, the purchasing
power of the country. II labor is paid
but 40 per cent it Can take but 40 per
cent Of the goods which it produces
from the market. The employer class
CT HI
ing so per cent and so glut ensueS
Factories are then closed or run on
part time or with smaller force and
so the purchasing power is further re-
duced and the condition is only aggra-
waited. Small concerns are forced to
the wall and soon the large corpora
ton or monopoly has control. This
| condition can not be righted Under
the present system. 1t must be
brought about by concerted action on
the part Of producers in all lines and
this can only be accomplished by
building up an entirely new system.
The Labor Exchange inSureS to every
man full return for his labor and so
leaves purchasing power in his
hands sufficiently large to procure the
products Of the labor of others such
as he needs. 1t takes the unused re-
sources ana the IDLE labor and brings
them together through the medium
of the labor check and so it capital
ICES labor. BY this plan labor in every
form is at once converted into capital
for carrying on business. The medium
of exchange does not rest upon SIN
gle commodity, gold, but upon all
commodities and so is ample, elastic
and fully adequate to all of the needs
of trade.
The recent action of the L. A. and
[. q. in appointing standing COM
mittee to investigate and see if the
plan can be worked through their
body, will be an encouragement to the
trades.