Nequa; or, The Problem of the Ages

by Alcanoan O. Grigsby; Mary P. Lowe

"I have no doubt of the principles," I said, "and from what I have seen, I am persuaded that the methods could be successfully applied wherever a nucleus of earnest reformers could be found who would make a careful study of the situation, and adopt the same business methods which were used so successfully in this country. I want some of the particulars concerning the history of this organization and a concise statement of its purposes and business methods that would serve as a model for a similar organization in the United States."

"The first organization," said Norrena, "was effected at this place which was then the site of one of the larger interior cities of that day. This was the center of business for a large population of farmers on one side and miners on the other. It started with the guaranteed trade of one hundred families and was a success from the start, as the result of the ample provision for educational work along the lines indicated. Every member was supplied with a paper which was devoted to the education of the people into a comprehensive understanding of business methods and commercial equation, as promulgated in theory and illustrated in practice by the Patrons of Equity. This paper contained the official reports of the business exchanges established under the auspices of the order. The educational work had been carried on for a long time by a few devoted workers, before it materialized into a self-supporting business. After that, the order spread rapidly. A percentage of the profits was used to employ organizers and every organization added to the trade and increased profits without any corresponding increase of expenses. When this movement was inaugurated, the number of commercial travelers in the country was estimated at about 250,000. These were persons of energy and business talent. They were quick to see the advantages which this system of commercial equity offered to men of ability, to establish themselves in business for which they were especially qualified, and they started out to find locations where they could organise business on these principles."

"But was there not some danger that designing people might get control and defeat the purposes of the organization?" I asked.

"Designing persons did get into positions," said Norrena, "but there could be no danger to the cause from this source, as in order to secure positions they had to adopt methods of business that could not fail to overthrow the profit system, and as fast as business was organized, the official paper of the order was sent regularly to every member. If at first they did not understand the principles well enough to protect themselves from knaves, they soon learned; and if anything was going wrong it was soon understood by the customers. As the business extended, the oppressive power of money decreased, and the power of labor increased. The enthusiasm of the people was aroused to the highest pitch, and the magnates of the old system were correspondingly depressed. The old system was essentially weak, while the new was peculiarly strong, and as the hosts of wealth producers came together, and utilised the actual values created by their labor as the medium by which exchanges were effected, prices went up as the result of the increase in the currency, and there was no use for money except to pay debts. Under this system, the purchasing power of labor and products was steadily increasing, while the purchasing power of money was decreasing. As long as money was needed to pay debts, products were exchanged for money at the increased price fixed under the labor standard, but when the debts were all paid, the purchasing power of money was gone and poverty had disappeared with it. Every debt had been paid according to contract, and in the payment of these debts the debtors had transferred their poverty to their creditors."

"We have gone over this ground," I said, "until, as I understand it, the great potency of this organization, was in the fact that all its methods were especially designed to ultimately eliminate the use of money in the transaction of business, but it occurs to me, that much could be done in this direction, without the organization of business exchanges, which issue certificates on the deposit of money and products to serve the purposes of a currency."

"You are right," said Norrena. "And much was done along other lines when the people came to understand that the prime factor in the overthrow of the profit system was to avoid the use of money in the transaction of business, in every manner possible. In some localities, farther east, the use of what was known as New Occasion Notes was introduced to facilitate exchange without money. The shoemaker, for instance, would give his note, payable in shoes, for groceries. The physician would give his note for groceries payable in professional services. The grocery man had no personal use for either shoes or the services of a physician, but he needed coal, and the coal dealer needed both a shoemaker and a physician, and exchanged coal for the notes. The exchange enabled the shoemaker and the physician to get groceries, the grocery man to get coal, and the coal dealer to get shoes and the services of a physician, and all without the use of a cent of money. The use of these notes became so common, that to still further facilitate exchanges, clearing houses were established where persons who held notes payable in something they did not need, could exchange them for notes that were payable in something they did need. This system of exchanging New Occasion Notes grew into a general collecting agency, and it was found that among the large number of collections placed in its hands, a great percentage cancelled each other, and balances could ordinarily be put in the shape of New Occasion Notes redeemable in some kind of products or services. As a means of enabling people to get out of debt, and at the same time facilitating exchange and decreasing the demand for money, these agencies proved to be most effective. The Patrons of Equity contemplated the persistent use of every method that could be devised to minimize the demand for money with a view to its ultimate elimination as a medium of exchange, by the establishment of equity between producers and consumers. They had learned that money of any kind could be inflated and contracted for selfish purposes, and therefore it was a false measure and could not be depended upon to mete out even handed justice to the people who used it as a medium of exchange."

"I can plainly see," I said, "that the field of labor for such an organisation in the outer world is practically unlimited, and I want you to furnish me with the details of its plan of organization, as a model for a similar one for use in my book."

"I have," said Norrena, "provided a translation of the Constitution and By Laws of the order, together with the rules and regulations for the government of its Exchange Department for your own use. I would advise you, however, not to publish these in your book. Only present the general principles, and let your people work out the details in their own way. Start the idea to working and I doubt not that they will discover how easy it is for them to escape from their thralldom to greed, and when they do, it will not be long until they sever the bonds that hold them."

"And how," I asked, "would you state these purposes so as to include all you have given me, in the fewest possible number of words?"

"For this purpose," said he, "I cannot do better than to quote the declaration of purposes from the preliminary constitution formulated by the founders of the Patrons of Equity, as follows: