It is therefore indispensable that all things which can be exchanged
should be capable of comparison, and for this purpose money has come
in, and comes to be a kind of medium, for it measures all things and so
likewise the excess and defect; for instance, how many shoes are equal
to a house or a given quantity of food. As then the builder to the
shoemaker, so many shoes must be to the house (or food, if instead of a
builder an agriculturist be the exchanging party); for unless there is
this proportion there cannot be exchange or dealing, and this
proportion cannot be unless the terms are in some way equal; hence the
need, as was stated above, of some one measure of all things. Now this
is really and truly the Demand for them, which is the common bond of
all such dealings. For if the parties were not in want at all or not
similarly of one another’s wares, there would either not be any
exchange, or at least not the same.
And money has come to be, by general agreement, a representative of
Demand: and the account of its Greek name νομισμα is this, that it is
what it is not naturally but by custom or law (νόμος), and it rests
with us to change its value, or make it wholly useless.
Very well then, there will be Reciprocation when the terms have been
equalised so as to stand in this proportion; Agriculturist : Shoemaker
: : wares of Shoemaker : wares of Agriculturist; but you must bring
them to this form of proportion when they exchange, otherwise the one
extreme will combine both exceedings of the mean:[18] but when they
have exactly their own then they are equal and have dealings, because
the same equality can come to be in their case. Let A represent an
agriculturist, C food, B a shoemaker, D his wares equalised with A’s.
Then the proportion will be correct, A:B::C:D; _now_ Reciprocation will
be practicable, if it were not, there would have been no dealing.
Now that what connects men in such transactions is Demand, as being
some one thing, is shown by the fact that, when either one does not
want the other or neither want one another, they do not exchange at
all: whereas they do[19] when one wants what the other man has, wine
for instance, giving in return corn for exportation.