The Grenada sentinel. [volume] (Grenada, Miss.) 1868-1955, 1900-10-27
WHAT MONEY IS.
Gold Recommendation Rests on a False
Theory of Money IA n Meas
ure of Value.

exposed, says . writer in the National
Waterman, by Ricardo, MacCullocf
and other economists of the last cen
fury, but we venture to think by none
more convincingly than by Alexander
Del Mar. in his Science of Money
Mr.. Del Mar writes as follows (chapter
Q, ON money and Other Measures"):
"a money is used to determine a nu-
merical relation between itself and all
other things, including other moneys,
simultaneously. Contrariwise, n yard
stick is used to determine a numerical
relation between itself and one other
thing at a time. The former is a com
pick measured; the latter a initial O.:
simple measure. Money cannot meas
ure one thing without at the same time
measuring all things; a yardstick may
measure one thing without measuring
any other. The length Of one object
does not depend upon the length of
other objects; the price of one object
does depend upon the price of other
objects.
Money is used to determine a kinetic
and variable relation; other measures
to determine a statical and fixed one.
Value varies with time and place; it
also varies with the frequency Of ex-
changes in time. Hence value is a vari-
able relation, and it is this variable
relation which money has to deter
mine; whilst that which a yardstick
determines is an invariable and fixed
relation. The determination of a yard
stick will last forever, whilst a deter
mination of money in price is only
valid for a given time and place.
"A measure of value can only be use
full In the social state; a measure of
length may be useful in the isolated
state. This arises from the fact that
length is an inherent and intrinsic at
tribute of matter; it is inseparably
connected with it, and has no tendency
to vary; whilst value is extrinsic and
relative, and continually tends IN way.
Length can be determined ~ oomPari-
son while value can oSfy be definitely
measured by sals g. exchange.
From the seal function OF money
e1uit- There can be no such thing
as 81 equitable OF inequitable length;
stere may be an equitable and ~inequit-
able price. Length does not vary with
the intellectual attainments, the
knowledge, information, opportunities,
virtues. and power of men; value does.
When these advantages and attributes
are unequal, the determination of value
by means Of money cannot be equitable;
one party is certain to obtain an I'M
due advantage over the other. When
they are equal, value becomes an equit-
able relation. Whether the determine
ton of value be equitable or inequit-
able, its measure should be constants;
in the case of an otherwise equit-
able exchange an inconstant measure
will make it inequitable; and in the
case of an inequitable n an incon-
slant measure will only add one in
equity to another, as is the case now
with all exchanges.
Length and every other attribute of
matter which is susceptible Of numer-
ical expression varies directly with
numbers. Value is a numerical relation
which varies inversely with numbers.
Hence two yardstaks cannot at the
same time and collectively measure
n relation Of length; while two
moneys may at the same time, that
Is to say collectively, measure one re-
lation of value. Two moneys used
collectively become instantly merged
into one another, and thus become one
money; two ysrdsticks cannot be
merged into one another. They cannot
be made one. They will always remain
two. Therefore they cannot be used
collectively to perform the same Of
fee; as two moneys can.
"The most important difference be-
tween money and other measures
arises from the fact hat the latter are
only used for comparison, while the
former is used for exchange. When
cloth is measured by means of a yard
stick, the latter is not given in ex-
change for the cloth. When cloth is
measured by means of money, one is
exchanged for the other. The whole
principle Of the measurement is differ
emit. In using the yardstick, the cloth
is not measured by some unlike sub
stance, but by an attribute o fitself. In
using money for valuing cloth, the
cloth is measured against all other
commodities. Now, what attribute of
money is it that measures the relation
of cloth to all other commodities and to
all kinds of services? Is il cost of pro-
duction? Clearly not, because expert
ment has proved that overyalued coins,
irredeemable paper notes, or even a
fixed sum of credits, are capable of cor
recting measuring value. Is it effort?
For the same reason, nc. Paper money
which costs but little effort to produce
will measure value as accurately as
that gold for which we labor SO siren
uously and commit so many crimes. II
is numbers, and numbers only. There
is no natural common denominator
for the varied services and commodities
which make up the exchanges of a civ
ilized community. Hence men have in
ua.tal IN arf;HoioI ooa ..Ltl