"Nothing difficult about it," said MacNair. "Product pays for product here just as it actually does in the outer world, but under co-operation, the elements of interest, profit and rent have been eliminated. The price of an article is fixed by the amount of labor expended in its production and distribution. This of course only applies to such commodities as are in demand. A great deal of labor might be expended in the production of something that no one wanted. Such labor would be wasted here as it would be anywhere else."
"I had thought of this contingency," I replied, "but was not seeking a difficulty. I referred only to such articles of necessity, comfort and luxury as the consumers wish to secure. How are the prices fixed, what is the standard and how are balances settled?"
"These questions," said MacNair, "are well put, to draw out a concise, as well as a comprehensive statement of our business methods. We readily ascertain by statistics, the average number of minutes, hours and days of labor invested in the production of every commodity which enters into common use. This includes the labor invested in the necessary transportation, superintendence and distribution. Hence in our accounts, the value of products of all kinds are credited and debited as given amounts of labor. This is what in the outer world would be called the price. A given number of hours of labor in one branch of useful service to society is worth just the same number of hours of labor in some other branch, and the exchange is made on that basis. The one primary object of this system of exchange is to secure equal and exact justice to all."
"But how are all these numerous employes on your railroads, in your stores and the various departments of industry paid?" asked Captain Ganoe.
"Very easily," said MacNair. "The people produce all the supplies and render all the service, and the people enjoy all the benefits. This is about all there is of it. We produce what we consume, and consume what we produce, without paying tribute to anyone else for the privilege of exercising these natural rights, as the people in the outer world are forced to do."
"But," said the Captain, "would you have me infer that all these expert clerks and accountants, and the commissioner who superintends all this business do not receive any more than the laborers on the farms and in the shops, factories and mines?"
"Why should they get more than people who are engaged in laborious occupations?" asked Iola. "They get all they can consume. If they should use a little more or less no one cares. They can have all they want without working any more hours than other people and I cannot understand how they could use any more food or clothing without ruining their health or making themselves very uncomfortable. I cannot conceive of any person wanting to eat more food or wear more clothes, because he or she is employed in some position of trust. Can you, Captain Ganoe?"
"I admit," replied the Captain, "that your question is a poser. And this is not the first time that I have been puzzled by your remarks. I do not say that you are wrong; but I never heard questions handled in this way until I drifted into this inner world. I can only say that I am bewildered and while I do not comprehend your philosophy I do admire your civilization."