Natchitoches populist., 1898-09-30
PHILOSOPHER VALUE
ILLUSTRATIONS FROM MATHE-
MATES AND ETHICS.
Monetary Relation between HatiohsA
integrity and Personal integrity "A
Diamond MAY Be More Valuable Than
q Pyramid.

value is a ratio but many of them DO
not make clear what is meant by the
term ratio. Some, after defining value
correctly, follow it up with many con-
fusing and contradictory statements:
Value has been variously defined as FOL
lows: 1.-THE value of anything is Its
purchasing power"
The value of a commodity is the
amount of materials fer when IL VIII
exchange In open market:
value is storedup labor.
Value is a result Of the equation OF
supply and demand.
Value is the result of decree or gov
ornamental fiat.
Value is ratio.
When the Sound money" men Talk
about intrinsic value they certainly
mean the same as the Socialists 90
when they speak of "stored-up labor
Since these two views have substan-
TALLY the same foundation they must
stand or fall together, Labor cannot
be made the universal basis OF value.
1t may affect value indirectly by in
creasing or diminishing supply OF COM
modities, but the value OF all articles
of production depends ultimately more
upon use than upon labor-cost OF pro-
duction. A diamond, carelessly picked
up out Of the gravel, might be more
valuable than one OF the Egyptian py-
ramids that has cost the labor OF thous-
ands of human beings. Suppose the
government, at infinite pains and ire
mendous cost, should tunnel the ROCKY
Mountains, and then NO one would use
the tunnel, would it have any value
Changes in customs, fashions, and tast-
es are constantly rendering labor ut
terly useless. If we accept the state
ment that value is the amount OF com
modities for which thing Will e1-
change, then value becomes material
something which can be shown to De
absurd. The supply and demand the
cry is intimately related to the LABOR
view of value The correct view seems
to be that value is nothing but ratio.
It is my purpose now to attempt a
fuller explanation of this view.
! A ratio results from comparison Inc
: comparison always involves two terms
: which are invariably of the same de-
nomination. In arithmetic the first
fho
second term the consequent, The ra-
!, tic is the relation of these two terms
expressed in the form of a division
This ratio is always abstract.
. Let us demonstrate:
S25-.-s5=5. s25-diyidend; So
: divisor: 5=quotient.
\ Proof. Stxs5-S25.
Let us suppose that SIS is contained IL
:, s25 five dollars times. Then substitute
ing in proof we have 5xSx5xS-51x$=
$685.
l. Now this would involve an absurd
}. ity. because mathematical conception
q arise only as result of the limitation
Il of quantity, and since denomination
a not quantity but the name of quantity
= it cannot properly be made the subjec
- of mathematical processes. Hence tn
- relation In q ratio is always an abstrae
n one. Value then is not labor. not
material thing, not the keystone OF a
~ arch upon one side of which presse
10 supply and upon the other demand
If but is an abstract ratio. Before oil
- cussing exchange value there are SON
y principles Of political economy tn;
no must be we'll understood They are {
no follows:
m The greater the number OF units OF
=. commodity, the smaller is the margin
IA utility of each unit Thus one doii'
T. has more utility to clerk whose sa
ds ary is only $500 than to a millionaif
Second, the amounts of two commot
"a t;es that are exchanged will be in
no inverse ratio to their respective uti
he ties
4 Thus one ounce of gold equals 81
~ teen ounces of silver.
Sixteen times utility Of one ounce
silver equals utility of one ounce
gold.
Expressed as proportion
Utility OF gold utility Of silver ::
Sixteen ounces of silver: one oun
of gold
That is: Utility of gold equals s.
teen ounces of silver or metal; util
ALL of silver equals one ounce OF gold
metal
Hence, utility utility metal
metal or as quantity quantity.
From the above we see that exchar
ons value is not ratio; it is a proporti
t. compounded of two ratios. and sill
Z. the ratios are abstract the proporti
must express an abstraction. 1t
Yea pears then that every exchange
wolves three comparisons; two that