Freedom, Society, and State - Ludwig von Mises Institute

another, thereby violating the latter's sovereignty.
Since the only equitable price was that determined by
the cost to the producer rather than the value to
the receiver the profit system, i.e., the view that
"value is the limit of price," is accordingly denounced
asa" s y s tern 0 f c i v iii zed can nibali s m by wh i c h the
masses of human beings are mercilessly ground to powder
for the accumulation of the wealth of the few."(20)
Fur the r, wh i 1e cos t wa s t 0 bethem0 r a Ide t e r minant 0 f
price, Warren believed that cost, in turn was determined
by labor. He did recognize, however, that an hour's
labor in one occupation might not be equal to an hour's
labor in another, and modified his labor theory of
va I ue to compensate for such di fferences. The equitable
or just price was not based simply on the number of
hours worked, but on "equivalent labor," and the most
"repugnant" occupations, being the most "costly," were
therefore to be accorded propo r t iona I Iygrea t errern un ­
eration. If the labor of A is "doubly as costly to
comfort, clothing, tools, etc.," as the labor of B, he
remarks, then five hours of A's labor ought to exchange
for ten hours of labor by B. This "would constitute
the equitable reward of labor to both parties."(21)
True to his principle of individual soverei.gnty,
Warren believed that the only way to determine the
equivalence of different labor was to allow each indiv
i d u a Ito est irna t e the cos t 0 f his own I abo r • Corn pet i ­
tion, he believed, would tend to insure honesty:
I f A set s his est i mat e 0 f the rna king 0 f a
certain kind of coat at 50 hours, and B sets
his at 30 hours, the price per hour, and the
known qualities of workmanship being the same
in both, it is evident that A could get no
business while B could supply the demand. It
is evident at A has not given an honest estimate,
or, that he is in the wrong position
for the general economy ••• (22)
The final price of a good, said Warren, would then
be set at the average number of hours expended on its
product ion. Thus, if the average number of hours for
the production of a pair of shoes is, say, ten hours,
and if one individual can produce them in only six, he
can still, in justice, charge ten hours of labor.(23)
Such are the principles which Warren believed constituted
a viable exchange system. Price was to be based
on the number of hours worked, modified by both the
f1repugnancefl as well as the intensity of the labor. The
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