The Jasper weekly courier. [volume] (Jasper, Ind.) 1858-1922, 1898-01-14
THE MoN QUESTION.
Ms Purchasing Power Fixes the
standard of the Dollar.

rect conception of the meaning Of the
terms used in discussing il.
Perhaps the most important word and
the one frequently employed in this dis
cussion is the word value. In its larg-
est sense, il is associated with utility
and includes everything that is useful
and which contributes TO the comfort
and well-being of mankind, and is called
value in use. In an economic sense,
hat is, value in exchange, IL is a
relation between things, as ratio is n
relation between numbers.
Ii would be manifestly absurd to ask
for the ratio Of a given number-l6, for
instance-without giving some other
number with which to compare II. If
that number is four then the ratio be-
tween them is four. because four is con-
tanned in 16 four times. In like manner,
IL would he absurd TO ask for the eN-
changeable value Of a thing without
mentioning or implying some other
thing with which to compare il.
"Nalue In what?" is the necessary re-
Spouse TO this question. Value is ex-
change. The only sense in which the
word can be employed in this discus
sion is a relation and implies the pres
ence Of two things and a comparison
between them. The value OF a thing is
some other thing that will be given in
exchange for il, and is always TX
pressed in the terms of the thing for
which it will exchange. For instance,
IL one bushel of wheat will exchange
for one dollar. then the valve of one
dollar in terms of wheat is one bushel
Of wheat, and the value of one bushel
of wheat in terms of money is II dol
lar. As value is simply a relation
there can be no such thing as
intrinsic relation; there can be no
such thing as intrinsic value; a
relation can be expressed, but it can
not be measured.
The exchangeable relation Of COM
modities cannot be ~ascertained by sim
ply comparing them with each other.
Aside from the Inconvenience of ex-
change by barter. il is impossible to de-
termine by inspection and comparison
how many units Of one commodity
should be given in exchange for a given
number of units of any other con-
modify. For instance, how many BUSH
els of oats or corn should be given in
exchange for a given number Of bush
els of wheat; and as the market rela-
tons Of these commodities are con-
stantly changing it is impossible to
foretell what their market relation will
be at any future time. This difficulty
Is obviated by the selection of some
third commodity or material thing in
the terms of which. as an intermediary,
all values are expressed. and which is
universally receivable for what anyone
has to sell. with the confident assur-
ance that it can readily be exchanged
for what anyone wishes to buy. The
intermediary so selected and employed
is u Its universal a~cceptability
rs money makes it money; and what
ever best performs the functions of
money is the best money. wholly re-
CARELESS of the material of which ii is
made. The selection of this inter
mediary and putting it into a form for
use as money is n function Of sovereign
power for the state. In u country
there is no room for controversy on this
point. 4
In article /, section s, paragraph 8, of
the constitution of the United States,
authority is given to congress ito coin
money, regulate the value thereof and
of foreign coin and fix the standard of
weights and measures" and our SUI
preme court has held that the impress
sion Of the stamp of the government
upon paper for monetary use is the ex-
net equivalent Of its impression upon
the metals; that the issue by the gov
eminent Of paper money is in legal ef-
feet coming money. thus showing that
the money quality does not reside in the
substance of which money is made,
but is impaired to it by the u
preme power of the state; In other
words. that money is wholly a creation
Of law, and that consequently all money
Is fiat money.
Associating the power to coin money
with that of fixing the standards of
weights and measures clearly indicates
a similarity Of the purposes and OBJ
jects to be accomplished by the eSer-
cises Of these powers. To fix the
standard Of weights and measures is
to provide n standard or scale in which
the weight and dimensions of the OBJ
jects which are the subjects of com
mercc shall be expressed.
The value OF money is its relation to
other forms OF property, in other
words. its purchasing power. 1t has
no other value. To regulate the value
of money is to make OF il n standard or
scale in which the value of commodities
and other forms of property shall be
expressed. A scale Of valuation is quite
as necessary for purposes of trade and
IN as a scale of weights and
measures.
Accordingly. by the act OF 1902, sec
ton 90. which organized our monetary
system. and is preserved in section 1868
Of the revised statutes, il is provided;
"The money of account of the United
States shall be expressed in dollars or
units, dimes or tcnths, cents or hun
dredths, and mills or ~thousandths, n
dime being the tenth part OF q dollar, a