The copper country evening news. [volume] (Calumet, Mich.) 18??-1907, 1896-10-24
MINING.
What ~ VslueS

The term standard Of value" 40 oft
repeated tn ~ days is in need OF a few
words Of explanation; with many ~ us
IL has altogether toD hazy meaning.
Let W. see " hat il really means when we
say that gold is today the STANDARD OF
value" Simply that values are ex-
pressed in terms of gold-that gold il the
common denominator OF prices. In
economies IA distinction ia made between
value and price, but that need not con-
cern us now, as values and prices are
used IA .quival. ut terms in the present
Discussion. The term standard OF
value isnot ahappy expression. because
il tends To give a wrong impression az TO
what exchange value is. Ii value was
commodity, dimension or volume We
might more correctly speak OF "a stand
ara Of value." but yalueis none Of these--
II neither commodity nor the intrinsic
quality OF a commodity; but the extrin-
sic relation bet ween com modities caused
by their exchange. Such relation cannot
strictly speaking he measured, but may
b. expressed and IL expressed in terms OF
monty. When we say wheat ia IS cents
busbel. d. liars are not measuring wheat
any more than wheat ia measuring dol
lars. lt ia simply the expression OF a
ratio, as though we had said that the
ratio OF dollars TO bushels of wheat was
Z to L. Ii We will keep in mind this idea
Of value we will avoid much confusion In
monetary matters.
And right here we wish to emphasize
the value expressing function OF money.
All arguments about money IA medi.
um Of exchange have no special force as
regards money as a commodity for being
a price Indicator. Every transaction,
large or small, whether by actual hand
ling Of money or by means OF bank Gre
dts, call- into use the value exp, essing
function OF money. Aud 30 it happens
that such function Of money becomes of
the greatest Importance, for any change
IN the mint OF value changes the basis OF
figuring out the prices OF all goods and
the value of all property and credits.
When we get firm grasp on these
facts aud make clear distinction be-
tween the twofupctions ofmoney-money
a. medium 81 ex bange and money az
a standard OF yalue-monetary science
and monetary history will lose some OF
their my stery.
IL may not enable us to comprehend
some oi the fne-spun theories that pass
for argument-such as the cumulative
theory OF the per capita idea. or the Jug.
Cling feat Of balancing pyramid on it's
apex, all OF which are INDUCED in, more
or lees, by the silver theorists. but IL
will help us to appreciate the business
situation Of today-how that 80 vast a
business can be done with 30 small
amount OF money, that the present
volume 81 money might be ample Tor ten
times the amount Of our present trade an
regards being a standard OF value, pro-
vided credit Instruments were plentiful
enough to make the exchanges.
And IL IN through these same bank ere
dits that the great bulk oil business is
done. Less than 10 per cent uses actual
cash. 40 the contention that there IL
not enough money to transact business"
4. sup.rfiuous. There never was and
never will be money enough II money "
to be the only medium Of exchange.
Business could not vsit until there was
"money enough, but proceeded to make
It's own currency In the shape Of bank
credits or deposit currency" which
today exceeds in volume twice the