The Breckenridge news. (Cloverport, Ky.) 1876-1955, 1895-07-03

of dollars TO be competed for, other
things being unchanged must determine
the value Of each dollar.
Standards Of value.
We are informed by so called "fnan-
oiers" and statisticians, and by an army
Of ready made political economists
among the gold standard prcss-gentle-
men who have not taken the trouble 10
carefully study the subject-that the
value Of gold is unchanging, and that to
attempt TO depart from what is called
the gold standard" would be TO set at
naught all the principles Of justice and
even to defy the very laws of nature.
This is an argument used only since the
characterization Of silver. Up to that
time it was we'll recognized by all who
gave any attention to the subject Of
money, and is still we'll recognized by
all the authorities ON political economy,
that both silver and gold are variable in
value SO serious indeed have from time
to time been the variations in the value
of money that thoughtful men-some Of
them distinguished economists - have
long observed and commented ON the
gross injustice which such variations in
volve, and various suggestions have been
made of methods for securing stability
of value in the monetary unit.
Up to the period when the creditors
discovered the ingenious plan of surrep-
titiously increasing by an appeal to the
legislative arm Of all governments the
value of all debts due, and to become
due, to them, by dcpriving debtors Of
the immemorial right to pay in either
of the two metals, it was acknowledged
by the most eminent economists that the
adoption Of single metal as Il so called
STANDARD" Of money did not secure 50
great degree of uniformity in value AZ
the adoption Of both metals. This may
seem paradox to those who have not
reflected on the essential nature Of mon
ey and upon the method by which ii OBJ
tains what is termed its "value, which
it does through the medium of tho prices
Of commodities. They ask: How can
there be a standard composed of two
things? Must not standard be one?
Can it be two or more?
Material, Quantity and Credit.
The seeming paradox involved in the
idea that what is called standard Of
value" may be composed Of more than
one material is made plain when it is
borne in mind that it is not the ma
terial, but the quantity, Of money which
constitutes the standard. The quality to
which in the case of value the word
STANDARD is applied is not quality
inhering in the material of the money.
Value, as l have shown, does not reside
in any article or in the substance Of any
article. When the consideration to be
kept in view is not an object, but serv-
ice--not II material, but II function-the
instrument by which that service or
function is performed need not neces-
sarily be limited to one material lnas-
much as the purpose to be served Is the
attainment of n correct result, whatever
the material by which it may be accom-
plished, such number of materials as
may be indispensable to that end should
without hesitation be employed. If we
wish to obtain Il clock which shall in
dictate the correct time, we do not insist
that it shall be made Of one material
The material Of which money is made
is no moro standard of value than the
material Of clock is the standard of
time.
The yardstick which by statute is de-
clared to be the model for all other
yardsticks is made of bronze, but bronze
is not, therefore, a standard Of length.
A bushel measure may be composed OF
any material or of any number Of ma
terials combined, but this makes no diff
ference so long as the precise purpose
sought is attained-namely, the secur-
ing Of perfect accuracy of measurement.
II we assume the model or standard"
bushel measure to be composed Of brass,
it is not the brass that is the standard
Of measure. Assuming that all bushel
measures were made of brass, then this
particular piece Of brass comprising the
model constitutes b standard by which
to test the metal of which all future
bushel measures may be made, but this
does not constitute brass per SO stand
ard" Of cubical content.
Credits aid in the establishment and
maintenance of prices, but credits are
themselves based ON the quantity Of
money available for liquidation. They
can he safely extended only to the de-
gree to which money payments can in
the ordinary course Of business be made
No one will pretend to say that credits
can be wisely extended beyond that
point.
Hence gold standard means the main
tenance Of level Of prices consistent
with the quantity in use as money,
which means level Of prices ON the
average the same as those prevailing in
gold using countries This must be clear
from the consideration that il from a
country which possessed no gold mines
all the gold had been sent out it could
be attracted back only TO buy commodi-
ties, which clearly means that unless
the prices of the commodities forming
the subject Of international trade were
for the moment lower here than in the
country from which the gold shOuld
come we could not have exported the
commodities except at loss.
JOHN p. JONES.