THE MEASURE OF VALUE STATED AND ILLUSTRATED, WITH AN APPLICATION OF IT TO THE ALTERATIONS IN THE VALUE OF THE ENGLISH CURRENCY SINCE 1790. —♦— BY THE REV. T. R. MALTHUS, M.A. F.R.S. PROFESSOR OF HISTORY AND POLITICAL ECONOMY IN THE EAST INDIA COLLEGE, HERTFORDSHIRE. LONDON: JOHN MURRAY, ALBEMARLE STREET. MDCCCXXIII. London: Printed by C. Roworth, Bell-yard, Temple-bar. THE MEASURE OF VALUE. It is generally allowed that the word value, in common language, has two different meanings; one, value in use, the other, value in exchange; the first expressing merely the usefulness of an object in supplying the most important wants of mankind, without reference to its power of commanding other objects in exchange; and the second expressing the power of commanding other objects in exchange, without reference to its usefulness in supplying the most important wants of mankind. It is obviously value in the last sense, not the first, with which the science of Political Economy is mainly concerned. But the power of one object to command another in exchange, or in other words the power of purchasing, may obviously arise either from causes affecting the object itself, or the commodities against which it is exchanged. In the one case, the value of the object itself may properly be said to be affected; in the other, only the value of the commodities which it purchases; and if we could suppose any object always to remain of the same value, the comparison of other commodities with this one would clearly show, which had risen, which had fallen, and which had remained the same. The value of any commodity estimated in a measure of this kind might with propriety be called its absolute or natural value; while the value of a commodity estimated in others which were liable to variation, whether they were one or many, could only be considered as its nominal or relative value, that is, its value in relation to any particular commodity, or to commodities in general. That a correct measure of the power of purchasing generally, or of commanding such important commodities as the necessaries and conveniences of life, in whatever way such power might arise, would be very desirable, cannot for a moment be doubted, as it would at once enable us to form a just estimate and comparison of wages, salaries, and revenues, in all countries, and at all periods. But when we consider what such a measure implies, we must feel certain that no one object exists, or can be supposed to exist, with such qualities as would fit it to become a standard measure of this kind. It would imply steadiness of value, not merely in one object, but in a great number, which is contrary to all theory and experience.