Mutual bank in the context of "Mutualism (economic theory)"

Mutualism is an anarchist school of thought and economic theory that advocates for workers' control of the means of production, a free market made up of individual artisans, sole proprietorships and workers' cooperatives, and occupation and use property rights. As proponents of the labour theory of value and labour theory of property, mutualists oppose all forms of economic rent, profit and non-nominal interest, which they see as relying on the exploitation of labour. Mutualists seek to construct an economy without capital accumulation or concentration of land ownership. They also encourage the establishment of workers' self-management, which they propose could be supported through the issuance of mutual credit by mutual banks, with the aim of creating a federal society.

Mutualism has its roots in the utopian socialism of Robert Owen and Charles Fourier. It first developed a practical expression in Josiah Warren's community experiments in the United States, which he established according to the principles of equitable commerce based on a system of labor notes. Mutualism was first formulated into a comprehensive economic theory by the French anarchist Pierre-Joseph Proudhon, who proposed the abolition of unequal exchange and the establishment of a new economic system based on reciprocity. In order to establish such a system, he proposed the creation of a "People's Bank" that could issue mutual credit to workers and eventually replace the state; although his own attempts to establish such a system were foiled by the 1851 French coup d'état.