https://www.britannica.com/topic/anarchism/English-anarchist-thought

Now Proudhon advocated a society without government, and used the word anarchy to describe it. Proudhon repudiated, as is known, all schemes of communism, according to which mankind would be driven into communistic monasteries or barracks, as also all the schemes of state or state-aided socialism which were advocated by Louis Blanc and the collectivists. When he proclaimed in his first memoir on property that ‘Property is theft’, he meant only property in its present, Roman-law, sense of ‘right of use and abuse’; in property-rights, on the other hand, understood in the limited sense of possession, he saw the best protection against the encroachments of the state. At the same time he did not want violently to dispossess the present owners of land, dwelling-houses, mines, factories and so on. He preferred to attain the same end by rendering capital incapable of earning interest; and this he proposed to obtain by means of a national bank, based on the mutual confidence of all those who are engaged in production, who would agree to exchange among themselves their produces at cost-value, by means of labour cheques representing the hours of labour required to produce every given commodity. Under such a system, which Proudhon described as ‘Mutuellisme’, all the exchanges of services would be strictly equivalent. Besides, such a bank would be enabled to lend money without interest, levying only something like I per cent, or even less, for covering the cost of administration. Everyone being thus enabled to borrow the money that would be required to buy a house, nobody would agree to pay any more a yearly rent for the use of it. A general ‘social liquidation’ would thus be rendered easy, without violent expropriation. The same applied to mines, railways, factories and so on.

In a society of this type the state would be useless. The chief relations between citizens would be based on free agreement and regulated by mere account keeping. The contests might be settled by arbitration. A penetrating criticism of the state and all possible forms of government, and a deep insight into all economic problems, were well-known characteristics of Proudhon’s work.

 

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