c. Coin and symbols of value.
That money takes the shape of coin, springs from its function as the circulating medium. The weight of gold represented in imagination by the prices or money-names of commodities, must confront those commodities, within the circulation, in the shape of coins or pieces of gold of a given denomination. Coining, like the establishment of a standard of prices, is the business of the State. The different national uniforms worn at home by gold and silver as coins, and doffed again in the market of the world, indicate the separation between the internal or national spheres of the circulation of commodities, and their universal sphere.
The only difference, therefore, between coin and bullion, is one of shape, and gold can at any time pass from one form to
prices of all the commodities in circulation, is a self-evident proposition. But how use-values, which are incommensurable with regard to each other, are to be exchanged, en masse, for the total sum of gold and silver in a country, is quite incomprehensible. If we start from the notion that all commodities together form one single commodity, of which each is but an aliquot part, we get the following beautiful result: The total commodity = x cwt. of gold; commodity A = an aliquot part of the total commodity = the same aliquot part of x cwt. of gold. This is stated in all seriousness by Montesquieu: "Si l'on compare la masse de l'or et de l'argent qui est dans le monde avec la somme des marchandises qui y sont, il est certain que chaque denrée ou marchandise, en particulier, pourra étre comparée à une certaine portion de le masse entière. Supposons qu'il n'y ait qu'une seule denrée ou marchandise dans le monde, ou qu'il n'y ait qu'une seule qui s'achéte, et qu'elle se divise comme l'argent: Cette partie de cette marchandise repondra à une partie de la masse de l'argent; la moitié du total de l'une à la moitié du total de l'autre, &c. … l'établissement du prix des choses dépend toujours fondamentalement de la raison du total des choses au total des signes." (Montesquieu l. c. t III., pp. 122, 13.) As to the further development of this theory by Ricardo and his disciples, James Mill, Lord Overstone, and others, see "Critique of Political Economy," pp. 235, ff. John Stuart Mill, with his usual eclectic logic, understands how to hold at the same time the view of his father, James Mill, and the opposite view. On a comparison of the text of his compendium, "Principles of Pol. Econ.," with his preface to the first edition, in which preface he announces himself as the Adam Smith of his day—we do not know whether to admire more the simplicity of the man, or that of the public, who took him, in good faith, for the Adam Smith he announced himself to be, although he bears about as much resemblance to Adam Smith as say General Williams, of Kars, to the Duke of Wellington. The original researches of Mr. J. S. Mill, which are neither extensive nor profound, in the domain of political economy, will be found mustered in rank and file in his little work, "Some Unsettled Questions of Political Economy," which appeared in 1844. Locke asserts point blank the connexion between the absence of value in gold and silver, and the determination of their values by quantity alone, "Mankind having consented to put an imaginary value upon gold and silver … the intrinsik value, regarded in these metals, is nothing but the quantity." ("Some considerations," &c., 1691, Works Ed. 1777, vol. II., p. 15.)
