page_title: Time-based currency
section_title: 19th century
hierarchical_section_title: Time-based currency / History / 19th century
caption_attribution_description: Abstract: Truck system of payment by order of Robert Owen and Benj Woolfield, July 22nd 1833
context_page_description: In economics, a time-based currency is an alternative currency or exchange system where the unit of account is the person-hour or some other time unit.
  Some time-based currencies value everyone's contributions equally: one hour equals one service credit. In these systems, one person volunteers to work for an hour for another person; thus, they are credited with one hour, which they can redeem for an hour of service from another volunteer. Others use time units that might be fractions of an hour. While most time-based exchange systems are service exchanges in that most exchange involves the provision of services that can be measured in a time unit, it is also possible to exchange goods by 'pricing' them in terms of the average national hourly wage rate.
context_section_description: Time-based currency exchanges date back to the early 19th century.
  The Cincinnati Time Store (1827-1830) was the first in a series of retail stores created by American individualist anarchist Josiah Warren to test his economic labor theory of value. The experimental store operated from May 18, 1827 until May 1830. The Cincinnati Time Store experiment in use of labor as a medium of exchange antedated similar European efforts by two decades.
  The National Equitable Labour Exchange was founded by Robert Owen, a Welsh socialist and labor reformer in London, England, in 1832. It was established in Birmingham, England, before folding in 1834. It issued "Labour Notes" similar to banknotes, denominated in units of 1, 2, 5, 10, 20, 40, and 80 hours. John Gray, a socialist economist, worked with Owen and later with Ricardian Socialists and postulated a National Chamber of Commerce as a central bank issuing a labour currency.
  In 1848, the socialist and first self-designated anarchist Pierre-Joseph Proudhon postulated a system of time chits.
  Josiah Warren  published a book describing labor notes in 1852.
  In 1875, Karl Marx wrote of "Labor Certificates" (Arbeitszertifikaten) in his Critique of the Gotha Program of a "certificate from society that [the labourer] has furnished such and such an amount of labour", which can be used to draw "from the social stock of means of consumption as much as costs the same amount of labour."
caption: Truck system of payment by order of Robert Owen and Benj Woolfield, National Equitable Labour Exchange, July 22nd 1833.
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