The herald., 1895-07-09
The Standard Of Value

ne StunOaTu VI Voss$S
Editor Herald lit seems unfortunate
that Mr.. Utley, in his article OF your is
sue of July 7th, should find SO much diff
Guilty in understanding the subject dis
cussed. He does not seem to realize that
be has not touched upon the subject OF
my former article, but wanders oil on
technicalities.
In his article Of the 7th inst. he used
a column or TWO quoting elaborate defini-
ticns to prove that there is an intrinsic
value in gold, etc., and that therefore in
my previous article l erred in using the
word intrinsic, Notwithstanding l showed
there was no intrinsic value in such cases
different from commercial value. Now
in his article of the sth he concurs in my
original use of the word by saying: "In
articles written by them the phrase in
tripsic value has a meaning. With my
limited education l could not understand
that Mr.. Widney used this term in any
other sense than chat in which it is used
by other writer's on economic questions.
Now il he will further study my origi-
nal article he will learn that I used the
words 'lntrinsic o. commercial value"
to show that the use of the words intrin-
sic value in such discussions must be
equivalent to commercial value in order
to express correctly the real thing, and
that / so used them.
Mr. Utley is somewhat confused in his
idea of demand and legislation, AS though
legislation varied the law of supply and
demand. Legislation may aid pools and
corners. and thereby increase the de.
mand, but in all such cases the law OF
supply and demand remains the same. l
object to laws creating pools or corners or
demands for any one set of people. While
Mr.. Utiey advocates that the law should
help make pool on silver, the goldbugs
want legislative pool on gold. To me
it seems that the people are interested in
not having a legislative pool on either:
Better give the farmer legislative pool
on his crops, and let the United States
pass law to buy up all wheat. corn. bar
ley, potatoes etc., at the rate of 81. % per
bushel. That would put the price OF such
farm products all over the world up to
that figure, provided the United States
could keep up its ability to pay for them:
when they were dumped into the United
States.
A tax by law on an article simply in
creases its cost OF production, and does
not vary the law of supply and demand.
In his article OF July 1st. be says: "Gold
and silver have no intrinsic value. but
like all other commodities their value is
regulated by the law of supply and de-
mand."
Does he attach this position in his ar-
ticle of the Sth. when discussing legisla-
tive action relative to pigeons. whisky or
silver? Or does he merely claim that leg
islation should aid silver owners in max
ing corner or pool on silver against the
balance OF the people of the U nited States2
In conclusion, allow me to state that
the words intrinsic value" OF money as
used by economic writer's. including Sem
ators Stewart. Jones. Teller and other sill
yer advocates, is undoubtedly an inaccu-
rate use of the word intrinsic. and is in
all such cases intended to mean the COM
mercaI value of the bullion as distin-
guished from the money value as reF-
resentative of the abstract standard OF
value discussed in my original article.
R. NJ. WIDNEY.