2 Matching Annotations
  1. Apr 2023
    1. Tradesmen, too, were quick to see that the exchange might be worked to their advantage; they brought unsaleable stock from their shops, exchanged it for labour notes, and then picked out the best of the saleable articles. Consequently the labour notes began to depreciate; trouble also arose with the proprietors of the premises, and the experiment came to an untimely end early in 1834.

      The labour exchange at Gray's Inn Road which began on September 3, 1832, which was based on Robert Owen's idea in The Crisis (June 1832), eventually collapsed in 1834 as the result of Greshham's Law in which "bad money drives out good." In this case, rather than money the object was the relative value of goods which were exchanged based on Labour notes. Labour notes were used to exchange unsaleable stock in shops for labour notes which were then used to purchase more valuable goods. This caused depreciation of the labor notes ultimately causing the experiment to collapse in 1834.

  2. Jan 2022