The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1927-02-11

cloth can get / jacket, or 10 lbs of tea,. or 40
lbs of iron, or 70 lbs. of cotton, ETC. Here JAG
ket or 10 lbs of tea, or 40 lbs of iron, or 70 lbs
of cotton would express the worth of 10 yds. of
cloth In this example l express the worth of one
object 40 yds of cloth in terms of the worth of
a number of other objects q packet, 10 lbs. of
tea. etc. If then say definitely that for 10 yds
of cloth | got one jacket in exchange, then here
the packet would be the price Of the 10 yds. of
CLOTH Ordinarily the price of a commodity is
denoted in terms of that commodity which spe-
cially serves as a means for expressing the worth
of all commodities. This special general commo-
dity is money.
l13 WHAT is MONEY?
The commodity which is accepted and used by
all owners of commodities as the evaluator of all
their various commodities is money. Money is
the general measure of value, the general means
of exchange, because through its medium any
commodity whatever can be exchanged.
Barter i. e. the exchange of product for product
without the medium of money, already in olden
times met with tremendous inconvenience and
difficulties Only primitive peoples, with very
simple needs and very few commodities were able
to content themselves with simple exchange of
commodity for commodity.
People, however, long ago conceived that if they
terms of the worth of a number of other COM
modities, for example the worth of bread in
terms of the worth of wool, talow, metals, ETC.,
then it should be possible to find one commodity
which should be capable of serving as constant
means of expression of the worth of all commodi-
ties in general. 1t would only be necessary that
one of these commodities should become the gen
eral measure of value not accidentally but by Gus
tom and that for it one should be able to obtain
everything that is needed. Money is this gen.
eral commodity.
IA. WHAT ARE THE FORMS OF MONEY?
In ancient times the people had various kinds of
money skins of animals, cattle, SALT shells. Grad
ually, however, these kinds of money ceased to
fulfill the aims of exchange and began to be re-
placed by metallic money (of iron, copper, TIM
which in their turn gave way finally to gold and
silver money. Gold and silver became the general
measure of value, l. e. money, because they pos
sessed to much greater degree than all other
metals, three essential properties l. Gold and
silver are commodities which in any form possess
the same qualities. 2 Gold and silver can be di-
vided into parts and reunited again without any
difficulty and without any loss of value. 8. Small
quantities of gold and silver possess high values
Besides metallic money, developed commodity
society uses also paper money.
Is. WHAT is PAPER MONEY?
Gold and silver are used as money because they
are themselves commodities i. e. products of labor
(and of great deal Of labor. But for society
with large turnover of money gold, and parti-
cularly silver, are quite cumbersome means of
exchange. They are difficult to obtain difficult
to transport, difficult to use as a direct means
Of payment of large sums. g would be very
advantageous and convenient for society if a type
OF money was created that would be only a con-
ventional token and would itself be very cheap
Paper money fills these requirements.
How, one might ask, paper money serve as
a measure of value and a means of payment if
it is worth next to nothing itself? Paper money
acquires significance because it is the substitute
for a corresponding quantity of gold in the hands
Of the government or in circulation If the paper
money is not secured by gold either in circulation
or in the governments vaults. its circulation be-
comes difficult, it falls in price and even COM
pletely loses its value In such case its circula
ton may become dependent on a compulsory order
of the government
Is. WHAT is THE ROLE OF MONEY?
Besides its chief role-to serve as a measure of
value Of all commodities in general, money fills
also the following roles in capitalist society:
1t serves as means of circulation q AS a
means of payment 8. AS a means of accumula
ton.
Money fulfills its role as means of circulation,
by serving as an intermediate in the process of the
circulation of commodities. A commodity is now
exchanged not simply for another commodity but
first for money, and then the money goes in nav
ment for another commodity
With the further development of comnodit,
production the role of money goes beyond the
bounds of commodity circulation and now money
expresses not only the worth of commodities. but
also every kind of obligation and service SIM
posing the government imposes taxes upon the
population. In what form are they expressed
Either IN some sort of products or in money. OF
course when money has begun to play the role of
standard of value, /. e., when one can oct any
commodity whatever for it, or satisfy anv need
II becomes most convenient for the government
20 accept money in payment of taxes The same
nolds true IN the case of payment for labor of
al KINDS OF employees and officials. for every
KIND OF government service etc. In this wav
money becomes a means of payment
And, finally, it becomes a means Of accuroua
Vlon' The saving and accumulation of natural
Values e. g. meat, milk, butter, iron. bread. coal
etc., either presents tremendous difficulties or is