Stelo - Utility of The Stelo

Utility of The Stelo

Since the Stelo was the currency of Esperantists, a good example of its utility was the publication of a monthly magazine and the payment of rents and salaries. The publisher of a monthly magazine receives subscription money, requires the services of a printer, and must pay for stationery and postage, etc. Under the influence of inflation costs will tend to increase but not all at the same time and not all in proportion to the inflation rate. Eventually the publisher must contemplate an increase to the annual subscription rate. The new annual rate usually has to be announced in September before the next calendar year.

Mee and his associates could show that linking the subscription rate to a stable currency unit facilitated this task, although commercial bank rates still required separate consideration. If a particular publisher in 1977 were satisfied with the exchange-value of 60 Steloj for one year, Mee's studies concerning the Stelo predicted that the exchange value of 60 Steloj would continue to be sufficient in future years. That publisher, therefore, would need only the currency tables for September to have an idea of the required subscription price level in national currencies for the next year.

A second example from the practice of the Esperantists is the rental of a hall to another society. As the Esperanto Association would want to maintain the same purchasing power for its rental revenue (since the Association's expenses would be likely to increase through inflation over time) it could conclude an agreement with the tenant, expressed in Steloj but payable in the national currency according to the then-current monthly conversion rate.

A third example is the determination of the salary for work performed. Whether we reckon using the Stelo system or not, wages are a matter of daily concern. All industrialized countries must contend with inflation, which continuously gnaws away at the family budget, and the only remedy is the continuing increase of salaries. Especially in the industrialized world, wage negotiations can lead to sometimes bitter confrontation between employers and labour unions. In developing countries lacking a strong tradition of labour relations law, these confrontations can result in human rights abuses or even in police or military intervention. After a strike or lockout has concluded it may take a long time to regain an atmosphere of mutual confidence and trust. Esperantist economists believe that the application of the Stelo to labour-management negotiations could prevent these problems.