Under this system of distribution, products passed directly from the producer to the consumer and were never handled but once. The producers held their surplus in their own possession until they had orders from consumers by whom it was needed. The Commissioner of Exchange at Orbitello had a tabulated report of the surplus held by each district, and each district had its clerks in the Order and Supply Department of the Continental Exchange. When an agricultural district wanted machinery, musical instruments, furniture, clothing, etc., the order for the same was transmitted to its own clerk in the Department of Exchange and it was at once sent to the district, or districts, having a surplus of the products needed. And when a Manufacturing District needed food supplies the orders were sent to the clerk in the Continental Exchange and the order was transmitted to the nearest agricultural district that had a surplus for exchange. Under this system of organized exchange, if any district found that it had a surplus accumulating in its warehouses for which there was no demand, this was all the notice required that a time had come to curtail production in that particular line. From what we could see of the workings of this system, by going through this department, we could readily see how the law of supply and demand, if permitted to act freely with no artificial restrictions, would be a perfect regulator in the world of commerce. Neither would there ever be, under this Altrurian system of exchange, a glut in the market at one place while there was a scarcity at another. "You see here," said MacNair, "a business house which handles the trade of a continent, containing over two hundred millions of people. All the products of the soil, the shop, the factory and the mine, are practically bought and sold in this establishment, and yet without any of the excitement and bustle, hard work and worry, which characterize the comparatively diminutive business houses of New York and London." "I see evidences," I remarked, "of a most admirable business system on a stupendous scale. But the question that will be asked in the outer world will be, How are these goods paid for and how are the prices fixed and the accounts adjusted without money? This is what the people of the outer world will want to understand. I am asking more for them than for myself." "Nothing difficult about it," said MacNair. "Product pays for product here just as it actually does in the outer world, but under co-operation, the elements of interest, profit and rent have been eliminated. The price of an article is fixed by the amount of labor expended in its production and distribution. This of course only applies to such commodities as are in demand. A great deal of labor might be expended in the production of something that no one wanted. Such labor would be wasted here as it would be anywhere else."