The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-04-12

that every male Indian In California VI
early days possessed on an average o.
least 500 IN shell money This wouio
represent the value Of almost two women
or two grizzly bear skins, or rs cinnamon
bear skins, or about three average ponies
In fine, the standard used by . people
enables one to determine from II with an
approach to accuracy the stage OF civihsa-
ton reached. In the hunting stage weapons
or skins were used In the nomadic stage
the unit was selected from oxen. sheep
goats, horses and slaves; In the liked farm
ing stage, from grain, houses and metals
as regards metals, gold and copper seem
to have been first adopted. The com.
modify chosen a. the standard has itsen
always had value to the community oy
which II has cen adopted Our author
pronounces 1t unthinkable that the value
Of any one article could be expressed IN
common denominator which itself had no
value. When We say that a given thing
may be exchanged for q certain weight ana
quality Of a standard. We moan thereby
that the value OF the former Is Expressed
by the amount OF the latter for which 1t IL
exchangeable. II a common denominator
had no value, It could not register the value
Of another thing. hence II could not be
common standard.
In contradistinction to a standard or
common denomination which itself has value
the function OF the medium OF erchdNoe
Ia TO serve as a means by which transfer
is made from goods Of one kind to goods OF
another kind. Unless q common denomi-
nator first existed, we should have no means
OF getting a concrete expression OF value
in generaI-a conception Of price being
necessary TO a practical comprehension
OF value. Until valuation In the money
commodity is made we cannot have
convenient exchange. Price is dependent
upon the conception OF a standard; the
medium Of exchange can come ehec-
lively into play only after the price
valuation has been made. But stand
ard could exist even In stage OF
barter. Not 80 with a medium OF ex-
change. The latter came into use because
OF two difficulties attendant upon barter;
first, the inconvenience arising from lack
Of coincidence In barter; and. second. the
indivisibility Of ordinary goods. The want
Of coincidence in barter, which gave rise
to the need OF q medium Of exchange, was
exemplifed by the naturalist, Mr., A. Il.
Wallace, during his travels In the Malay
archipelago. He relates that In some OF
the islands, where there was no proper
currency, he could not procure supplies
for dinner without a special bargain and
much chafYering upon each occasion II
the yender Of fish or other coveted eatabies
did not meet with the sort OF exchange de-
sired he would pass on, and Mr.. wallace
would have to go withou; his dinner The
first difficulty in barter Is to find two persons
whose disposable possessions mutually
suit each others wants. There may DO
many people wanting and many possessing
the things wanted: but, 10 allow OF an act
of barter, there must be double coincidence
which may rarely happen.
Thus hunter having returned from a sue
cessfu chase has plenty Of game. and may
want arms and ammunition to renew the
chase. But thu ne who have arms may hap
pen to be well supplied with game, 30 that
no direct exchange is pc ssibe. 30 we see
that sellers ard purchasers can only be
mace 10 fit by the Use OF some comma dity
which all are willing to receive Tor a u ne'
80 that what h obtained by sale In enc
case may be used in purchase In another
The sece nd difficulty which arises In barter
from the Individuality OF me 1T gee dis may
he illustrated as follows: The tailor may
have a q at ready to exchange. but It much
exceeds In value the bread which he wishes
To get from the aker. or the meat which he
would like to procure from the butcher.
lie cannot cut the coat up without destroy
ing The value OF his handiwork II is Obvious
that he needs some MEDIUM OF exchange
into which he can temporarily convert
the &C at, so that he may give a part OF its
value fer bread. and other parts for meat
fuel ard daily necessaries, retaining, per-
haps, a pcrtiCn fer future use
Our author repre- duces from Karl Menger
the description of the process by which
a generally acceptable and easily salable
comm, dity came into Use as a medium
q exchange. A person possessing e DDS
not easily exchan geable at a given time
and place for desired satisfactions will have
a motive for first exchanging his posses
sions for generally desired COM
modify, not because he desires the latter
per se. but because he thereby draws nearer
TO accomplishing his ends; since, when he
obtains a highly salable article. even II II
be not the article needed. he can then mere
easily advance TO the final act OF blaming
the d SIRED comms dities which he had first
in mird. Hence. -tho sc commo dities which,
relatively to beth space and time, are me ri
salable have in every market become the
wares which II is, not only In the interest
OF every ne to accept in exchange for his
own less salable e DIS, but which also are
Tho Sc he actually d. rs readily accept. This
superior salableness depends only upon
the relatively inferior salableness OF every
other kind Of comm' dity.' Just as no
article which d. es net itself have exchange
value can be q standaid or common de-
nominator of value, no nothing which Ia
not itself valuable can serve as a medium
OF exchange No enc would q ciously
give away ccmmo dities of value fer a
medium Of exchange which was notn rio usly
lacking in value, which he might ps-
sibly be obliged to held for time. Other
wise the whole purp o. Of exchange VIC uld
he defeated; since fer worthless medium
of exchange one could not obtain other
gee DIS.
As seen as any division Of labor appeared
in society, the need Of a medium Of ex-
change became evident; and this need has
L. ;nt,Deitv Nth tha vv,s Il arr