as largely the result of a depreciating standard. It is for these reasons that stability of value is always emphasized as of the greatest importance in connection with the commodity chosen as money.

7. THE STANDARD FOR DEFERRED PAYMENTS1 We may now consider the third function of money, namely, to serve as a standard of deferred payments. Whenever a contract is made covering a period of time, within which serious changes in the economic world may take place, then difficulties may arise as to what is a just standard of payments. Various articles might serve equally well as a standard for exchanges performed on the spot, but it is not so when any one article is chosen as a standard for deferred payments. Without much regard to theory, the world has in fact used the same standard for transactions whether settled on the spot or whether extending over a period of time.

In order to work with perfection as a standard for deferred payments, the article chosen as that standard should place both debtors and creditors in exactly the same absolute, and the same relative, position to each other at the end of a contract that they occupied at its beginning. This implies that the chosen article should maintain the same exchange value in relation to goods, rents, and the wages of labor at the end as at the beginning of the contract, and it implies that the borrower and lender should preserve the same relative position as regards their fellow producers and consumers at the later as at the earlier point of time, and that they have not changed this relation, one at the loss of the other. This makes demands which any article that can be suggested as a standard obviously cannot satisfy. And yet it is a practical necessity of society that some one article should in fact be selected as the standard. The business world has thus been forced to find some commodity which-while admittedly never capable of perfection-provides more nearly than anything else all the essentials of a desirable standard.

8. DIFFERENTIATION OF MONETARY FUNCTIONS2

BY W. STANLEY JEVONS

It is in the highest degree important that the reader should discriminate carefully and constantly between the four functions which money fulfils, at least in modern societies. We are so accustomed to Adapted from Report of the Monetary Commission of the Indianapolis Convention (1898), pp. 92–93.

'Adapted from Money and the Mechanism of Exchange, 1875, pp. 16–17 (D. Appleton & Co.)

use the one same substance in all the four different ways that they tend to become confused together in thought. We come to regard as almost necessary that union of functions which is, at the most, a matter of convenience, and may not always be desirable. We might certainly employ one substance as a medium of exchange, a second as a measure of value, a third as a standard of deferred payment, and a fourth as a store of value. In buying and selling we might transfer portions of gold; in expressing and calculating prices we might speak in terms of silver; when we wanted to make long leases we might define the rent in terms of wheat, and when we wished to carry our riches away we might condense it into the form of precious stones. This use of different commodities for each of the functions of money has in fact been partially carried out. In Queen Elizabeth's reign silver was the common measure of value; gold was employed in large payments in quantities depending upon its current value in silver, while corn was required by the Act 18th Elizabeth, c. VI. (1576), to be the standard of value in drawing the leases of certain college lands.

There is evident convenience in selecting, if possible, one single substance which can serve all the functions of money. It will save trouble if we can pay in the same money in which the prices of things are calculated. As few people have the time or patience to investigate closely the history of prices, they will probably assume that the money in which they make all minor and temporary bargains is also the best standard in which to register debts and contracts extending over many years. A great mass of payments too are invariably fixed by law, such as tolls, fees, and tariffs or charges; many other payments are fixed by custom. Accordingly, even if the medium of exchange varied considerably in value, people would go on making their payments in terms of it as if there had been no variation, some gaining at the expense of others.

B. Money, Capital, and Wealth

(1) THE UNIVERSAL LOVE OF MONEY
9. PROVERBS ON MONEY'

A man without money is a bow without an arrow.
A man without money is a ship without sails.

A thousand pounds and a bottle of hay

Are just the same at doomsday.

1 Compiled by Walton H. Hamilton. Designed to show the general confusion of money and wealth down through the ages.

A man without money is like a bird without wings; if he soars he falls to the ground.

Money does not get hanged.

Money is the best bait to fish for men with.

Money is the soul of business.

Money is a universal language, speaking any tongue.

If you have money, take a seat;

If

you have none, take to your feet.

Mention money, and the world is silent.

Money answereth all things.

Money begets money.

He that hoardeth up money takes pains for other men.
He who hath both money and bread

May choose with whom his daughter to wed.

If a man's money be white, no matter if his face be black.
If you have money, you are wise; if not, you are a fool.

If you make money your god, 'twill plague you like the devil.
Give me money, not advice.

man.

God makes and apparel shapes, but it is money that finishes the

God send you more wit and me more money.

Hate, religion, ambition, all have their hypocrisies, but money applies the thumbscrew to them all.

But help me to money and I'll help myself to friends.

He that hath no money in his purse should have fair words on his lips.

Good manners and plenty of money will make my son a gentleman.
Money makes a man for ilka that.

One handful of money is stronger than two handfuls of truth.

Put not your trust in money, but your money in trust.

When money speaks, truth keeps silence.

Money is a sword that can cut even the Gordian knot.

10. MONEY AND HUMAN MOTIVES1

Nothing in use by man, for power of ill,
Can equal money. This lays cities low,
This drives men forth from quiet dwelling-place,
This warps and changes minds of worthiest stamp
To turn to deeds of baseness.

-SOPHOCLES

Compiled by Walton H. Hamilton.

Money's the life and soul of mortal man.
Who has it not, nor has acquired it,

Is but a dead man, walking 'mongst the quick.

How greatly everywhere

Prevails the power of the two oboli.

-TIMOCLES

-ARISTOPHANES

Cursed be he above all others

Who's enslaved by love of money.

Money takes the place of brothers,

Money takes the place of parents,

Money brings us war and slaughter.
-ANACREON

What power has law where only money rules ?-PETRONIUS ARBITER.

For the love of money is the root of all evil.-PAUL OF TARSUS.

'Tis money makes the man; and he who 's none

Is counted neither good nor honorable.

-DIOGENES LAERTIUS

Money alone sets all the world in motion.-PUBLIUS SYRUS.

I . . . . found him whom I left a foe, my friend.
What will not money do?

-PLAUTUS

Money, the sinews of war.-CICERO.

There is no sanctuary so holy that money cannot profane it, no fortress so strong that money cannot take it by storm.--CICERO.

Men dig the earth for gold, seed of unnumbered ills. OVID.

Make money, money, man;

Well, if so be, if not, which way you can.

-HORACE

All things, human and divine, renown,
Honor, and worth, at money's shrine bow down.

-HORACE

None questions whence it comes, but come it must.-JUVENAL.

"The beautiful eyes of my money-box!"
He speaks of it as a lover of his mistress.

-MOLIÈRE

For I did dream of money-bags to-night.-SHAKESPEARE.

If money go before, all ways do lie open.-SHAKESPEARE.

Whilst that for which all virtue now is sold,

And almost every vice-almighty gold.

-BEN JONSON

Money brings honor, friends, conquest, and realms.-MILTON. Get money, get money still,

And then let virtue follow if she will.

-POPE

But the jingling of the guinea helps the hurt that honor feels.— TENNYSON.

The measure under consideration affects the people I have the honor to represent more than any question that has come before this Congress. It is a measure cognate with the tariff. By this and kindred acts the money is passed from the Government to the people. Money is as old as civilization and its existence is necessary to society. The use of money is all the advantage there is in having it, yet money makes up in a measure all other wants in man. The greatest want of the commercial and business life of this country today is money. It is needed alike by the merchants, farmers, and laborers. The demand is for more money, and of course it should be of the best.

Money is power, and so acknowledged the world over. It is the force that underlies our civilization and pushes it to the greatest possible activity. Money impels the merchant to his most venturesome daring, the mechanic to exploiting his most inventive genius, the farmer to endure the summer's heat and the winter's cold, and the toiler in every direction to the accomplishment of the most earnest effort for success. The power of money and the hope of its attainment is the incentive to nearly all humanity's most earnest and most honorable exertion.

What, then, is money and what are its uses? It may be stated in general that money is crystallized labor, labor accumulated and massed, and when so accumulated and massed it has the power of

'Adapted from a speech in the House of Representatives, June 6, 1890, Congressional Record, XXI, Appendix A, p. 347.