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Story
March 2, 1893
The Alliance Independent
Lincoln, Lancaster County, Nebraska
What is this article about?
On March 2, 1893, A. Stedwell, former representative from Buffalo County, writes a letter critiquing George C. Ward's articles on monetary science and proposes a concise definition of money as 'the legal representative of value,' explaining its attributes and role in exchange and debt.
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MARCH 2, 1893.
WHAT IS MONEY
A Short Definition which, According to
the Writer, Includes all other
Definitions.
"A REPRESENTATIVE OF VALUE."
Ex-Representative Steadwell of Buffalo
County Writes upon the
Leading Issue.
Criticisms on Mr. Ward.
Editor ALLIANCE-INDEPENDENT:
I have read with a great deal of interest the articles in your paper on "monetary science" by George C. Ward of Kansas City, and also your criticisms upon same, wherein you intimate that writers upon monetary science should be able to give a more terse, accurate and scientific definition of "money" than has yet been given.
And when this question once got fairly into my think-tank, I could not rest until I had fired up under it, and boiled it down. Here is the result:
Money—The legal representative of value.
In his last article Mr. Ward says:
Money is a complex utility, possessing many attributes, and performing a variety of services.
It would be almost impossible to formulate one clear and comprehensive definition of money which would not include all (and more than) the definition I have attempted to formulate.
Now I affirm that the "complexity" of money, with its "many attributes," and its power of "performing a variety of services," all grow out of its inherent representative nature: and I believe the above definition is the key to all the verbose explanatory definitions of it.
It is a "measure of value," because it is "the legal representative" of the current, or commercial value of any and every article that any one desires.
It is a medium of exchange because "it is the legal representative" of the relative commercial value of all articles sought to be exchanged.
It is a tool for the liquidation of debts, because debt is an obligation of the debtor to return to the creditor a certain specified "value," and money is the legal representative of value.
As to Mr. Ward's third definition:
"A certificate that the holder has performed certain labor:" if it is so, it is because labor has a commercial value and "money is the legal representative of value." As to his fourth definition, it is only a repetition, or an amplification of his second. "A tool for the liquidation of debt." The quality of legal tender can only be imparted by statutory enactment, and to be really money, it must be received for all debts or claims, public or private: and this is what makes it the representative of value. It must have this representative value, and it may have, (but not necessarily) an intrinsic value, and the intrinsic value may be more or less than its representative or money value: but to be money per se it should have no natural or intrinsic value, which makes it an article of merchandise as well as money.
The best money is that which has only a representative value, it should be utterly worthless and useless for any other purpose but to represent value. Then any supposed intrinsic value would not cause it to be converted into bullion, or used in the arts and thus subtracted from circulation.
One other thought in this connection: The volume of this "legal representative of value," should at all times fully and adequately represent the volume of its trade in all articles of value that are in process of exchange.
A. STEDWELL.
WHAT IS MONEY
A Short Definition which, According to
the Writer, Includes all other
Definitions.
"A REPRESENTATIVE OF VALUE."
Ex-Representative Steadwell of Buffalo
County Writes upon the
Leading Issue.
Criticisms on Mr. Ward.
Editor ALLIANCE-INDEPENDENT:
I have read with a great deal of interest the articles in your paper on "monetary science" by George C. Ward of Kansas City, and also your criticisms upon same, wherein you intimate that writers upon monetary science should be able to give a more terse, accurate and scientific definition of "money" than has yet been given.
And when this question once got fairly into my think-tank, I could not rest until I had fired up under it, and boiled it down. Here is the result:
Money—The legal representative of value.
In his last article Mr. Ward says:
Money is a complex utility, possessing many attributes, and performing a variety of services.
It would be almost impossible to formulate one clear and comprehensive definition of money which would not include all (and more than) the definition I have attempted to formulate.
Now I affirm that the "complexity" of money, with its "many attributes," and its power of "performing a variety of services," all grow out of its inherent representative nature: and I believe the above definition is the key to all the verbose explanatory definitions of it.
It is a "measure of value," because it is "the legal representative" of the current, or commercial value of any and every article that any one desires.
It is a medium of exchange because "it is the legal representative" of the relative commercial value of all articles sought to be exchanged.
It is a tool for the liquidation of debts, because debt is an obligation of the debtor to return to the creditor a certain specified "value," and money is the legal representative of value.
As to Mr. Ward's third definition:
"A certificate that the holder has performed certain labor:" if it is so, it is because labor has a commercial value and "money is the legal representative of value." As to his fourth definition, it is only a repetition, or an amplification of his second. "A tool for the liquidation of debt." The quality of legal tender can only be imparted by statutory enactment, and to be really money, it must be received for all debts or claims, public or private: and this is what makes it the representative of value. It must have this representative value, and it may have, (but not necessarily) an intrinsic value, and the intrinsic value may be more or less than its representative or money value: but to be money per se it should have no natural or intrinsic value, which makes it an article of merchandise as well as money.
The best money is that which has only a representative value, it should be utterly worthless and useless for any other purpose but to represent value. Then any supposed intrinsic value would not cause it to be converted into bullion, or used in the arts and thus subtracted from circulation.
One other thought in this connection: The volume of this "legal representative of value," should at all times fully and adequately represent the volume of its trade in all articles of value that are in process of exchange.
A. STEDWELL.
What sub-type of article is it?
Economic Essay
Opinion Letter
What keywords are associated?
Money Definition
Monetary Science
Legal Representative
Value Measure
Debt Liquidation
Legal Tender
Intrinsic Value
Economic Theory
What entities or persons were involved?
A. Stedwell
George C. Ward
Where did it happen?
Buffalo County
Story Details
Key Persons
A. Stedwell
George C. Ward
Location
Buffalo County
Event Date
March 2, 1893
Story Details
A. Stedwell proposes that money is 'the legal representative of value,' arguing it encompasses all other definitions and attributes like measure of value, medium of exchange, and debt liquidation tool, while critiquing George C. Ward's more complex explanations.