Perrysburg journal. (Perrysburg, Wood Co., O. [Ohio]) 186?-1965, 1876-06-02
The Standards Of Trade.

EVERY trade transaction being in its ma
ture an exchange of one thing for an
other, there must be some way, unless the
transaction be one of direct barter, in
which to determine the proportions in
which the two things shall be exchanged
for each other. This creates the necessity
for standards of trade or measures, by
which these proportions shall be fixed
and expressed. These standards are of
two kinds-namely, standards of quantity,
by weight or extensions and standards of
Udlue, In the terms of which the propor-
tions shall find expression. Let us illus.
trate this statement
Here is q man who has wool TO sell, and
with it he wishes to buy dry goods and
groceries. How much wool has he to sell?
In order to answer this question stand
ard of quantity must he employed. The
wool must be weighed, and this supposes
a standard of weight, in the terms of
which the quantity of wool shall be
definitely stated How much of dry
goods and groceries does he want? Here
is another question of quantity. He wants
so many yards of cloth, as determined by
the yGrd measure; so many pounds of tea,
so many pounds Of coffee, and so many
gallons of molasses, as determined by the
pound and gallon measures. The man,
however, who has the dry goods and the
groceries does not want his wool, and,
hence, he can make no trade with him.
On the other side of the street, however,
is man who will buy the WOOL yet he
has no dry goods or groceries to give in
exchange for it. What he has is that most
exchangeable of all commodities, called
RlJRey; and this is the article which he
-
pounds and price. That is 10 say, he will
give specified quantity of money for a
pound of wool, which is the Drtce of the
wool per pound, and then multiply the
quantity of money in proportion to the
number of pounds. The owner of the
wool trades with him, and takes so much
money, as the measure or standard Of the
value of the wool.
Having thus got rid of his wool, and
turned it into a certain amount OF money,
he is now ready to deal with the owner Ot
dry goods and groceries, who sells to him
so many yards of cloth at so much money
per yard, o many pounds of tea at so
much money per pound, and so on with
the other articles that ne wants, until all
the money procured by the wool is eX-
pended. lie went to the market with
wool to sell, and he goes home with dry
goods and groceries. The process of the
exchange consisted in selling his wool for
money and then selling the money for dry
goods and groceries.
What then has money done in this Sc
ries of transactions? In the first place, it
fixed and expressed the market value OF
the wool in its own terms, by being ex.
changed for it in certain proportions OF
the one to the other; in the next place, il
did the same thing in respect to the dly
goods and the groceries; and, in the third
place, it in this way fixed and expressed
the eXchangeable proportions between the
wool and the dry goods and groceries as
to their relative value. 1t accomplished the
last result by a double comparison with
itself. 1t acted as an instrument of eX-
change, because it is standard of value
and computed and expressed other values
by its own value.
Suppose. then, that the money had no
value that it was like the air or the sum
shine, without eXchangcable value; and
then it would not be money at all as mLas-
ure Of value, since it would furnish no
terms in which TO express the value of
other things, and, hence, no terms in
which to express their prOportiOnate val
ues. Nor would 1t be accepted and used
dS an IHSlTuHlCnl Oh cACndnge ln6
moment this fact was realized by
the people. Money is an instrument Of
exchange because it is standard or
measure Of value. Its primary function
is that of a standard of value, and this
function it cannot perform except by its
own value. Trade proceeds upon the
theory of supposed equivalence and
money is that one thing which by reason
of its value and use holds the relation Of
equivalence in certain general proper
tions TO certain general proportions of all
other things. The more fixed this rela-
ton the better the money.
The reason why gold and silver are Sc
lected for this purpose is that, on the
whole, they best serve the purpose. There
are no other substances known to men
which they eau so conveniently use as
measures of value, and which at the same
time are so universally negotiable, and
preserve so much constancy and uni
formitY of value in proportion to all
other values. These facts point to them
as the best attainable denOminators of
value. Though not absolutely perfect,
they are more perfect than any other sub
stances that can be used for the same
purpose. This is equivalent to saying
that they are the best money which it is
possible to have.-N. Y. Independent.