New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-02-27

thing Of which It Is the standard. II II Is the
mus. ,ss nSve Of wssh t
must itself have weight like the pound ,she In IN me
standard Of cubic IN sr ke and md
is involved therefore law makes anu are Con
gross NAV coin money regulate the value Thereon >.
and ak the standard OF weights ana % G q,
maw anS ana the unit Of weights and
ures but 1t does not make or TX req, r .u "a
th reatye value in one case and fixes the standard
in the other II regulates the vaiue IN n,o f ,ps
dying the alloy and the relative weighs OF the
metals in exchangeable value. The units hxed by
law are only part OF the arithmetic INTENDED 10
ances in business transactions
THE UNIT OF VALUE.
With us the unit Of value is a dollar In Eng
land It is a pound sterling. In France II Is II
franc and so on. differing In different nations
These units differing In different nations. maze DIV
law for convenience. could be changed INTO any
others and the ones would answer Just as
well; but the value in the money unit itself Is not
made by law That the value In the standard Of,
value varies with the amount Of commodities. ike
wheat cotton, which II would buy at
different times is perfect absurdity. II that was
the case then the commodities. varying In their
production with the seasons would be the standard
Of value. The standard of value could not itself
be changing with abundant or short crops or by
decreasing or Increasing demand for them AS
the standard of value measures the value ir all
commodities. 1t cannot itself be changing IN It's
own value by the increasing or lessening quantity
of any commodity. The standard OF value In the
money unit OF nations is certain number OF grains
of gold not so many bushels OF potatoes. beets or
onions The value Of a grain of gold Of certain
fncness has BEEN fixed by the acquiescng con-
sent the consensus OF opinion of commercial ma
tons. and 1t is Of the same commercial value In
them all .
We hear much about the purchasing power OF
gold varying at different times implying that the
value of the gold unit in the standard OF value
itself is OF greater less value at one time than
another. This is confusion OF terms In the use
of language The cheapening OF the cost OF COM
modities. by reason of inventions In labor-saving
machinery. greater skill in various appliances OF
human ingenuity. may so reduce the cost OF any
commodity that the number of grains Of
gold will purchase much larger quantity at one
time than another. the supply and demand re-
naming the same But the value in the grain Of
continue to be the same long as it is the
standard of value. VIII any one contend that be-
bushel and now sells for 81. that the value In the
grain or ounce Of gold that paid for II Is new one
in grain OF gold itself. in the money unit Of the
standard of value which measures the value In all
mand of the commodities themselves? II So then
there is no fixed, standard of value. independently
that were the case then the value In the money
unit, of the standard Of value shrinks and ex-
mand, and what is called the purchasing power
of gold would then be greatest when the supply of
commodities is greatest and the demand least, no
matter what the cost OF production might be- and
vice versa in their supply and demand.
The value Of the grain of gold in the money unit
OF the standard OF value must remain the same
through the varying conditions of supply and de-
nand and cost of production In commodities.
there could be such thing rs fixed standard Of
sible to have a fixed standard OF weights and
measures. but impossible to have fixed stand
ard Of value. the most essential thing I'm all
the business affairs of life. that Will be vary
ing with the supply and demand and cost of pro-
duction OF commodities the value OF which Is TO bo
measured by the standard itself. The greater pur-
chasing power OF gold at time another
consists In the cheapening OF the cost. the In
of the supply over demand of the commodi-
ties purchased and not in absolute increase in
the value OF grain OF gold. 1t may take more
grains of gold at one time than another to buy the
same quantity or amount OF commodities. by reason
or short supplies but the real value in the grain OF
gold In the money unit OF the standard OF value
must remain the same. and the variation in the
amount or quantity of commodities that II will buy
Is not in the value of the unit. but in the
less cost or or the respective SUPPLY of and de-
mand for what is to be exchanged for IT.
No matter how many grains OF gold. more less
any commodity may at any given time command In
the market the value In the grain Of gold itself con-
tnueS the same and that must necessarily be the
case long as II is the standard OF value In the
by one nation than can the mathematics OF the
world be changed by nation attempting to change
the axiom OF the multiplication table that twice
are two into twice one are four.