Iron County register. [volume] (Ironton, Iron County, Mo.) 1867-1965, 1898-01-06
MONEY VALUE
Its Purchasing Power Fixes the
Standard of the Dollar.

We can make NO progress in our
knowledge Of the money question until
we have clear understanding and cor
rect conception of the meaning of the
terms used in discussing it.
Perhaps the most important word and
the one frequently employed in this dis
eussion is the word value. In its larg-
est sense. it 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,
that IS, value in exchange, it is
relation between things, as ratio is a
relation between numbers
1t would be manifestly absurd to ask
for the ratio of given number-16, for
instance-without giving some other
number with which to compare it. If
that number is four then the ratio be-
tween them is four. because four is con-
tanned in 10 four times. In like manner,
it would be absurd to ask for the ex
changeable value of thing without
mentioning or implying some other
thing with which to compare it.
Value 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 comparison
between them. The value of a thing is
some other thing that will be given in
exchange for it, and is always ex-
pressed in the terms of the thing for
which it will exchange. For instance,
l. II = L,
for one dollar, then the value 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 one 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 COM
modify. For instance, how many BUSH
els of oats or corn should be given in
exchange for 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
I, 4 : l., -,
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 money. Its universal acceptability
as 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 it is
made. The selection of this inter
mediary and putting it into form for
use as money is function of sovereign
power for the state. In our country
there is no room for controversy on this
point.
In article 1, section s, paragraph 5. of
the constitution of the United States,
authority is given to congress "to 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-
act equivalent of its impression upon
he tolls hot hT-+ ha
eminent of paper money is in legal eff
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 su-
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 exer-
cises of these powers. To "fix the
standard of weights and measures" is
to provide 4 standard or scale in which
the weight and dimensions of the OBJ
jects which are the subjects of COM
merce shall be expressed.
The value of money is it's 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 it a standard or
scale in which the value of commodities
and other forms of property shall be
expressed. 4 scale of valuation is quite
as necessary for purposes of trade and
commerce as a scale of weights and
measures.
Accordingly. by the act of 1892. sec
tiop 20, which organized our monetary
syAtem, and is preserved in section 1868
of he revised statutes, it is provided;
ReChe money of account of the United
Sha.es shall be expressed in dollars or
u ens, dimes or tenths, cents or hun
d auths, and mills or thousandths, a
dcloe being the tenth part of q dollar, a
{hic being the hundredth part of dol
hid n mill the thousandth part of a
MIr. and all accounts in the public
IS and proceedings in the courts OF
United States shall be kept and have
ormity to this regulation
hat regulation was this, unless ii
al a regulation of the value of money
atu dollar is simply the unit of this
last I and in the keeping of accounts
Folalues are expressed in the terms of
readirunit, its multiples and fractions,