How did Proudhon's mutualism propose to organize work and credit?

Pierre-Joseph Proudhon’s mutualism proposed an egalitarian society organized through the economic self-liberation of the working class, rather than through state-led revolution.12

Organization of Work

Proudhon envisioned a society composed of independent peasants and artisans who maintained "possession"—the right of workers to control the land, tools, and workshops necessary for their production. He advocated for factories and utilities to be managed by associations of workers, replacing traditional bureaucratic management with workers' self-management. This approach sought to prevent the exploitation of labor while preserving individual liberty, distinguishing his views from both capitalism and the state-controlled models of communism.12

Organization of Credit

To support this decentralized system, Proudhon proposed a network of mutual credit founded on "people’s banks". He famously attempted to establish such a bank, which utilized labor checks to compensate workers based on the time expended on their products. By facilitating exchange through mutual credit rather than centralized state control, he aimed to create a natural social unity bound by contract and mutual interest.12