Utopia Without Colony: The Labor Exchange Movement

The depression of the 1890s prompted concerned Americans from all walks of life to embark upon a rich variety of self-help programs.A leading illustration was the Labor Exchange movement.Although formulated by a resourceful Italian immigrant, G. B. De Bernardi, who lived near Kansas City, Missouri, in 1890, it was not until the dark days after the Panic of 1893 that this scheme began to attract much attention.What De Bernardi and his followers had in mind was a form of barter: the locally unemployed would organize a warehouse of "depository" where their surplus goods could be exchanged for "certificates of deposit," better known as "labor checks."These paper notes would then circulate among members and nonmembers alike and could either be presented at the warehouse for durable items or used for services.Most Labor Exchange enthusiasts remained content to have what De Bernardi called "utopia without colony," but some challeneged his concept.Perhaps these dissenting souls realized that the founder was probably correct in underscoring the difficulties of life in a raw intentional community; yet, two colonies eventually materialized, the more enduring being "Freedom" located near Fort Scott, Kansas (1897-1905).The separatists' over-whelming desire seemed to be the creation of the Labor Exchange on a permanent basis; a colony to their way of thinking could institutionalize this self-help plan, thus making it something more than merely a passing response to the economic dislocations of the day.Whether a colony or not, the De Bernardi blueprint for a better America collapsed by the early years of the 20th century for reasons that commonly explain the demise of Utopia-beckoning economic opportunities elsewhere, internal disputes, outside hostility, and inadequate capital.