The principle was outlined in Warren's
Equitable Commerce (among other writings) and has been called a "mainstay of 19th century
individualist anarchism". Tucker explained Warren's views as so: {{Quote|From
Smith's principle that labor is the true measure of priceor, as Warren phrased it, that cost is the proper limit of pricethese three men [i.e.,
Josiah Warren,
Pierre Proudhon, and
Karl Marx] made the following deductions: that the natural wage of labor is its product; that this wage, or product, is the only just source of income (leaving out, of course, gift, inheritance, etc.); that all who derive income from any other source abstract it directly or indirectly from the natural and just wage of labor; that this abstracting process generally takes one of three forms,interest, rent, and profit; that these three constitute the trinity of
usury, and are simply different methods of levying
tribute for the use of
capital; that, capital being simply stored-up labor which has already received its pay in full, its use ought to be gratuitous, on the principle that labor is the only basis of price; that the lender of capital is entitled to its return intact, and nothing more; that the only reason why the banker, the stockholder, the landlord, the manufacturer, and the merchant are able to exact usury from labor lies in the fact that they are backed by legal privilege ...|Benjamin Tucker Warren put his principle into practice in 1827 by establishing an experimental "equity store", called the
Cincinnati Time Store, where trade was facilitated by notes backed by a promise to perform labor. This scheme was exactly that advocated by
Pierre Proudhon some years later under the name
mutuellisme; however, it is believed that Proudhon developed his ideas independently. ==See also==