Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1876-06-15
The Standard Unit of Value.

slst OF a liked quantity OF some concrete
substance, defined by reference to the
units OF weigntor space.'' The elements
OF this description are these: first, some
concrete substance, as opposed to
merely ideal uni. of value that has no ex-.
lstence except in the mind; secondly, a
fixed quantity of this substance, as op-
posed toa variable quantity; thirdly, the
determ; nation of this quantity, either by
its weight or its bulk, which is secured by
reference to 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 alloy composed of copper
or copper and silver in combination.
Nine tenths of the dollar are pure gold.
This fulfils the first condition of a unit of
value, since it gives d concrete sub
stances" which in this instance il gold,
combined with 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 twenty-five and eight
tenths grains. And this supplies the Sec
ond condition-namely the fixed guam
tity'' 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 this 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 certain definite
proportions, either by multiplication or
division r.,s ....,fi. 81 st-,e4
A single coin, however, made a 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 a 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 a system of multiples and
submultiples the needed variety Of coins
for the public convenience may be educed
from the standard unit of value. ~ & \
t. 1t. is a matter of no consequence what
particular coin is selected as the unit OF
value, or how much or how little it
weighs, provided "a definite and fixed
quantity OF some 90 concrete substance" be
sele, tied for this purpose, and the value OF
all other coins, as ascertained by quantity,
| is de -rrmined thereby. The unit may be
the dollar, the franc, the pound sterling,
the mark or any otherq quantity by weight,
provided these conditions are complied
with The thing to be secured is a con-
gvtnient unit, and a conyenient system of
coinage based upon it, which, when enter
ing into contracts expressed in money,
will indicate exactly how much of the
"cOncrete SUI stance,' whether 1t be gold
or silver, composing the unit, is due from
one person to another. Every contract is
a 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. That is to say, it is a contract TO
pay the Qat171t5ty of the coined concrete
substance Indicated by the monetary de-,
nomination used in the contract. None
tary denominations are simply names Oh
fixed quantities of the article or articles
IL ed as money. .a.-s.#-a
Now, the . concrete substance" which
| is to supply the constituent material of the
| Standard unit of value must in the nature
of its service, have value, considered in
relation to other things, antecedentlys to
and independently OF this use Of it. IA 1t is
| to act as a sgeneralized equivalent Of all
| other values, to express these values in its
| own terms, and in the processes of trade
| 10 be exchanged TOR them. If it has no
value, no eXchangeable power by reason
o its labor cost and the uses to which So
tclety applies it, then it lacks the first con-
ditiOn of being money ut all. If it has
value, but the valuesis exceeding Fly tiuc
| tuatingsor exceedingly limited in relation
to the desires ofsmen, then it lacks the
| indispensable condition of being good
money, If it not only has value. but also
high degree Of uniformity in this, value,
IS compared. with other substances and if,
| in addition to This, if has the other requi-'
| site qualities specially fitting it to none
tary use, then it is, for these reasons, emf
nentIy adapted to act as the standard of
value. rv
! That the precious metals, better than
| any other Substances Known TO man, sup
! ply these conditions, and that mere bits
of paper scarcely supply them at all, is a
proposition which the world has long
since acceptedla as true. a gold or silver
unit of value has solid basis in the nat
ural value of gold and silver, while
paper unit OF value is sheer humbug. A
so-called paper dollar; if divorced from
the gold dollar as the promissory repre-
sentative of the latter, is nothing but a,
piece of paper so many inches longsand
SO many inches wide, and having no
more value than any other equd quantity
| Of paper Of the same quality. 1t is worth
10 more than the rags Of which it was