Baraboo weekly news. [volume] (Baraboo, Wis.) 1912-197?, 1922-03-30
MONEY

Money performs two closely related
functions, i. e., as a medium of ex-
change and as standard of value. In
the first instance it passes from hand
to hand and is itself exchanged for
goods or services; in the second in
stance il may not be handled at all,
but goods and services are valued and
exchanged by reference to it. AS the
greater part of the domestic and in
ternational trade of this country is
/ carried on by the latter method. it
is important to keep the distinction in
view
Money in the beginning of its use
performed both functions; that is to
say, it was something that had value
in itself, and passed current as the
direct means by which the exchanges
of other things were effected. AS the
division Of labor developed and men
became dependent upon trade to
supply their wants, they sought to
convert their own products into the
kinds of property for which the de-
mand was most constant and which
could be most readily disposed of.
Each producer traded his product
either for something that he wanted
for consumption or for something that
he thought had a wider or more con-
slant market than his own product.
Fundamentally. it was a direct ex-
change of values. Cattle, various
products of the soil, the metals, were
IAN used, and process of elimination
began which by popular choice grad
ually shortened the list of commo-
dities thus used to gold and silver,
and finally, for the greater part of the
commercial world, to gold.
This is perhaps as good a place as
! any to refer to the leading argument
against gold as the standard of value.
1t is said that gold has no real value
in itself, that it does not minister to
any fundamental human want, that
society could do without it far better
than without the products which serve
i for food or clothing, or without iron
and numerous other articles of util-
ity. But after this is admitted it does
not prove the contention that gold is
not suitable for the standard of value.
If society had to choose between doing
without the necessaries mentioned
and doing without gold. it doubtless
would choose to dispense with the
latter, but it does not have to do with
out either. A great many things that
are not primary necessities are in
constant demand and year after year
command prices in the public market
that are quite as stable as the prices
OF wheat, cotton or iron. Tobacco
is not one of the necessities of life,
but from one year to another tobacco
is as sure of a market and a stable
price as any of the grains Fine pic
lures, good music, good acting are
not primary necessities. but the peo-
pie who can supply them always com
mand high pay as compared with
those who produce corn and cotton.
The world does not live by necessar-
les alone, or deal in necessanes alone.
or value nothing but ncessaries, and is
not likely to be reduced TO a state
where such is the case.
II has been said that one mans
meat is another mans poison, and the
Inference is that it is best to let every
man determine for himself what he
shall eat, and what things have value
for him. There are bankers who have
maintained that the automobile bust
ness was not on a sound economic
basis, and other people who think that
too many people buy talking machines.
Not much is gained by arguing alb
stractly about the utility of things
which people want, whether it be
gold. automobiles or anything else.
Commercial values are not fixed by
~.