The Iowa plain dealer. [volume] (New Oregon, Howard County, Iowa) 1867-1895, 1884-10-09
The Measure Of Value.
From the Western Rural. !

been throwing away their votes for twenty
years.
The Measure Of Value.
from the Western RuralI
There Is vast deal OF paper and ink
wasted ON the subject Of measure of values.
We have Just received from the publishing
house Of the Fowler 4 Wells Company, Of
New York, book entitled the "Fallacies in
Progress and Poverty which is interesting
enough for anybody to read. Necessarily
Mt the head Of this article. As matter Of
fact the measure Of values can be anything
that the people agree to, and anything will
answer the purpose vt money Just to the
extent that the world agrees that il shall
answer that purpose. Nobody wants
money for itself. No man ever sold an mr.
ticle and got what he thought II was worth,
Ii he was compelled to keep the gold or
silver that he received for IT, II in not the
bank or the Government that redeems cur
rency. We are accustomed to say that a
bank bill il redeemable by the bank that
issues II. 1t Is an error. The bank will
give us gold and silver for the bill. but who
il 10 redeem the gold and silver? and if IL
il not redeemed by somebody of what use
is II IA money! II II the grocer, the dry
goods store, the tax collector, the real es-
tate agent, or whoever else has anything
we want to buy, who redeems our money
and makes ii valuable. II nobody would
eive ms anything for tho money that We
use for the measiire Of values, il would be
good for nothing. whether il was made Of
paper, gold. silver. or rubies. No man
living would give his farm for all the money
in tho world, il nobody would take the
- II II
liable as measure Of value" because
those metals or one of them is the most
widely used for the purpose OF making
money. That is TO say, more people agree
that gold aud silver coin shall he the
measure Of values than agree that any
thing else may be. Hence these metals
have a greater commercial value than any
other m ,tal. They are limited i'm supply,
and the wurld wants them for the purpose
of making a measure Of value" Tnkc
away this demand. and gold would he of
little value. Gold as an article of utility
is in very little demand. 1t has not
rs mitch intrinsic value M either Of
the common metals Of which We
make our ordinary implements and
utensils. As between them in themselves
iron Is much more yaluhle. and If gold was
not used for money. and there was only
wagon load Of iron In the world II would
be worth more than all the gold that was
ever mined. The use of the term money as
a measure Of value il incorrect anyhow.
Money is no measure of value at all. A
dollar measures nothing except as u yard
stick measures cloth. The yard, stick is
simply a convenience. rs the half bllshcl
measure Is, or the surveyors chain Is.
When we b,iy grain We do not SLY il is worth
L. Ia. n 1....x Il Il
not say IL is. worth a surveyors chain. When
We buy cloth We do not say il Il worth a
yard STICK. We simply use these things 10
designate how much Of the commodity We
want. as We use a cup TO measure water.
We want SO much elo,h-so many inches
What il il worth. ward stick: II is prob
ably worth several yard sticks. II Is worth
what il has cost to produce IT, The labor
in il il the measure nf value, aud
when we pay money for it. We SIM
ply nse convenient medium of ex-
ehange~-we give the owner something that
somebody else will take and give in return
as much of something else in value MS We
gave for it, Brass buttons will answer this
purpose Just as well as gold dollars, IL all
will agree that they shall. For the last
twenty years bank notes have been doing
the business of circulating medium in
this country. Anybody can buy rs much
with bank note IA he can with a gold dol
lar, and rs long rs all will agree to that, a
bank note is Just as good rs q gold dollar in
domestic commerce. II gold dollar is
ever worth more than paper dollar for
money. il is because somebody or some
bodies refuse IL take the paper dollar. For
foreign commerce the gold dollar is worth
more than paper dollar. because in for
eiDn countries they will not take our money.
We have no money that will buy anything
in England or France. We must exchange
some commodity for what We want, and
gold and silver are the most con:
senient commodities TO exchange. They
ara the most valuable because the world
demands one or both of them for the
purpose Of coming money for domestic use.
or for exchange purposes in their foreign
commerce. The value of money rests
upon common consent and upon nothing
else. II is not strictly true. as is often al
legged. that the stamp Of the Government
gives money its value. The Government
| il is true, according 10 the recent decision
Of the Supreme Court, can make anything
| legal tender. So far. therefore. rs the
| payment of a debt goes, the stamp of the
Government does make money and gives to
| il its value. But the Government can make
no money that will enable man to buy a
bnshel Of potatoes for 5O cents of face
value upon such money If nobody chooses
TO sell the potatoes for that amount. The
purchasing power of money depends Who'll.
| IL upon the arbitrary will of the people
| As a measure of quantity dollar shrink'
or expands according to the value Of labor
| In itself the dollar is never worth any more
or less than its face value. If labor i.
worth only dollar day-sll labor thai
enters into the production of an article:
dollar viii buy twice ms much Of the arti
Gle as il would if labor was worth - I
day. 1t is the labor that measures til.
value. II Is the money that measures til,
quantity.