Perrysburg journal. (Perrysburg, Wood Co., O. [Ohio]) 186?-1965, 1876-06-09
The Standard Unit of Value.

PROF. JEvoNs, in his work on "Money
and the Mechanism of Exchange" saws
that the standard unit of value must con-
sist of fixed quantity of some concrete
substance, defined by reference to the
units of weight or space" The elements
of this description are these: first, some
"concrete substance" as opposed to n
merely ideal unit of value that has no eX-
istence except in the mind; secondly, a
+" fixed quantity" of this substance. as op-
posed to variable quantity; thirdly, the
determination of this quantity, either by
its weight or its bulk, which is secured by
preference 10 the units of weight or
space" These elements being present,
and also adopted for monetary purposes,
give the standard unit of value to which
all other values are referred for cOmputa-
ton and expression.
Take, for example, the gold dollar of
the United States, which is by law made
the unit of value This dollar consists of
gold, having the standard fineness of nine
hundred parts of pure metal and one hun
dred parts of alley composed of copper
or copper and silver in combination
Nine. tcnths of the dollar are pure god
This tullils the first condition OF unit of
value, since it gives concrete sub
stance" which in this instance is gold,
combined with a small quantity of alloy
TO increase its hardness. How much gold
does this dollar contain? The law pre-
scribes that, including the alloy, the gold
dollar shall weigh w cnty-tive and eight
tenhs grains And this supplies the sec
ond condition namely, the "fXed guam
tityr OF gold in this unit of value. In
defining this quantity the law refers to
the grain as the unit of weight The
stamp of the United States being placed
upon lhis quantity of gold, it is then a
coin, and, as such, the standard specimen
by which all values are to be denominated
and expressed and TO which all other
coins are to be graded in cerain definite
proportions, either by multiplication or
| division.
A single COIN however, made n unit of
value, is not sufficient TO meet the wants
OF the people; and this creates the neces-
sity for other coins, founded on the unit
yet expressing greater or less values.
Hence, we have the gold eagle, which is
| equivalent to ten units OF value, because
it contains ten times as much gold by
weight; and also the half eagle, contain
| ing five times as much gold as the unit.
| The quarter eagle and the three.dOllar
| piece are constructed on the same princi-
| pie Any number of coins larger and,
! hence, more valuable than the unit, may
be manufactured by simply multiplying
the unit. so. also, smaller coins may be
made by dividing the unit, either by
| coins containing less gold in fixed pro
| portion, or by selecting some other sub
stance, as silver, to express one-half, one
quarter, or one-tenth of the value of the
! gold unit. BY system of muluples and
submultples the needed variety Of coins
for the public convenience may he educed
from the standard unit of value.
1t is matter Of no consequence what
particular coin is selected as the unit Of
value, or how much or how little il
weighs, provided definite and fixed
quantity of some "concrete substance" be
selected for this purpose, and the value OF
all other coins as ascertained by quantity,
is determined thereby. The unit may be
the dollar, the franc, the pound sterling,
the mark, or any otherquantity by weight
| provided these conditions are complied
with. The thing to be secured is con
venient unit, and convenient system o.
coinage based upon it, which, when enter
ing into contracts expressed in money
will indicate exactly how much of the
"concrete SUBSTANCE" whether 1t be gold
or silver, composing the unit, is due from
one person to another. Every contract il
stipulation in the language OF these
units. 1t is a contract to pay so many
dollars, so many francs, so many pounds
sterling, or so many marks, as the case
may be. I hat is to say, it is contract tC
pay the qudn,$ty of the coined "concretC
substance" indicated by the monetary dc
nomination used in the contract None
tary denominations are simply names o
fixed quantities of the article or articles
| used as money.
Now, the Z" concrete substance" which
is to supply the constituent material of thu
standard unit Of value must, in tue nature
of its service, have value, considered il
relation to other things, antecedently Il
and independently OF this use of it. 1t /
to act as a generaliZed equivalent OF al
other values, to express these values in it
own terms, and in the processes Of trad,
to be exchanged for them. IT it has NJ
value, no eXchangeable power by reason
of its labor cost and the uses to which so
ciety applies il, then il lacks the first con
dition OF being money at all. If il ha
value, but the value is exceedingly fluc
tuating or exceedingly limited in relation
to the desires of men, thea it lacks tn
indispensable condition of being g00t
money. II il not only has value, but alst
high degree of uniformity in this value
as compared with other substances, and il
in addition TO this il has the other requi
site qualities specially fitting it to none
tary use, then II Is, for these reasons, emf
nently adapted to act as the standard o
value.
That the precious metals, better thai
any other substances known TO man, sup
ply these conditions, and that mere bit
of paper scarcely supply them at all, Is
proposition which the world has Ion
since accepted as true. A gold or silve
unit of value has a solid basis in the nat
ural value of gold and silver, while
paper unit OF value Is sheer humbug. Z
so-ealed paper dollar, If divorced Iron
the gold dollar as the promissory repre-
sentative of the latter is nothing but
piece of paper so many inches long an
SO many inches wide, and having n
more value than any other equal quantil
of paper of the same quality. 1t is wort
no more than the rags of which II wa
made. Its value in the material compos
ing it is too Insignificant to meet the II
quirements of a standard unit of value. =
". Y. Independent
THE editor of the Examiner, of Galls
tin, Tenn, is not an int1atlonist II
gives this convincing illustration of III
depth of the faith that is in him; lou
sad experience in the Confederate State
where we paid a $10Oh for that last ga
Ion of apple brandy in North Carolina, di
not make us fall much in love with IN
J liniCe issues Of paper money, aud ihes
impressions have clung 10 us to this day.
|
THE acreage of cotton in the South tn
, season is 0,5lS,0OO.