House of Equity

Boston's House of Equity was inspired by an 1855 lecture by Josiah Warren, the author of Equitable Commerce, which was heard by one Mr. Keith. 1167

The House of Equity was a seven-story building in Boston's North End. It sold merchandise and provisions according to the Cost principle. 1167

The first week's sales averaged $1,000 a day. 1167

In the fall of 1855 there was a series of 12 lectures 'on topics of current interest by popular speakers.' Admission price was set according to the Cost principle, based on the 'cost of the undertaking, to the general satisfaction of those who attended.' 1167

Keith rented a warehouse on Washington Street to enlarge the scope of the store. It was to include a ground floor bakery 'from which the public was to be supplied with wholesome bread at cost,' as well as a 'printing establishment that would issue The People's Paper, then published by Mr. Keith, and other literature of the Equity movement. The 'chief feature' was to be an educational department. 1176

While the warehouse 'scheme was under way a calamity befell the whole enterprise from which it never recovered.' The store already in operation caught fire and burnt down, at a loss of thousands of dollars. Keith expected to resume business quickly and continued to pay the wages of the store's 50 employees. Unfortunately at the same time his South American investments failed, drastically reducing his wealth. The 'extensive plans had to be greatly modified', but ultimately, they were abandoned. 1176

The education department, however, was shifted to Chapman Hall, where Keith and another man continued that project. 1184

According to an Editorial in the Boston Post, "The Boston House of Equity has closed its operations, another evidence of the uncertainty of human schemes. There was, however, a principle in that store which, though but partially developed, a thousand failures could not affect." 1184

According to Warren, the first day after the House of Equity shut down, 'the price of coal in Boston was raised by the dealers two dollars a ton.' 1184

Another, partially realized, plan of Keith was applying the Cost principle to land purchases. "A tract of land was secured in Cliftondale, near Boston, and house lots to the number of four hundred were sold to home-seekers at prices not enhanced by any profit or speculative value beyond the first cost." 1184

The concept of Equity was so popular at the time that business owners 'placed over their establishments such legends as "Equity Produce Market," "Equity Eating House," "Original Equity Store," and so forth. These proceedings, however, only added the needful spice of humor to the movement. Unscrupulous but alert dealers, without an idea of what Equity stood for, vied with one another for patronage by hoisting Equity colors.' 1194