tion led to the invention of two classes of commercial instrumentalities,—the real, consisting of weights and measures, and the ideal or representative, consisting of writing and notation. The exercise of the remaining functions of government secures the wealth these serve to define. It may, indeed, be true, in a rude sense, that possession is nine points of the law; but it is equally true, in a proper sense, that the remaining point is worth more than the nine; the defence and enforcement of right being an absolute and well-defined rule of government. In a state of barbarism men prefer fact to right, for an obvious reason; but as they advance in science and civilization, as their conceptions become more distinct, their definitions more exact, their defences more complete, and their enforcements more powerful, their faith in right increases, and their esteem increases with their faith, until right becomes of more value than possession.
Exchange, whether by barter or sale, is the result of differences of estimate or value. By barter, the articles exchanged are themselves the mediums; if, therefore, a given article be generally accepted to that use, it becomes a common medium; and if it be divided by government into well-defined quantities, suited and intended for that use, it becomes money. Money, therefore, in its original form, is a common medium of barter, that is accepted to that use by authority of law,—a medium which, considered distinctly from that authority, is simply an article of merchandise possessing qualities that make it preferable as a means of barter, and which, for convenience of use, bears the stamp of the government-inspector, defining the exact quantity contained in each piece, but which, inasmuch as it is authorized, and partakes of the nature of law, has ideal qualities that make it the means of sale: these are, right of use, nomination, and numeration. The ideal qualities of money serve to establish price, to create money of account, to make credits possible, and ultimately to produce credit-mediums of exchange, or bills, which, in a given form, though mere declarations of right to the wealth they are said to represent, become, in the hands of a civilized people, a species of currency that, with all its defects, has proved itself to be the most effectual means both of commerce and of government.
Wealth is that which may be used. Value is that by means of which wealth may be exchanged. A currency, therefore, should consist of representatives of value,—of representatives, because value, being ideal, is known only by that means,—of value, because it is only by differences of estimate or value that exchanges are possible. But, as these representatives are wholly nominal, and may, therefore, be issued in any quantity, and as their increase or decrease affects the value of credits, their issue requires regulation. The quantity of the currency may be well regulated by finding the rate per head of population during a favorable state of trade, and by adhering to that invariably.
That the people of the United States have reached the degree of science and civilization proper to the creation of such a currency is not yet evident; but there is reason to believe that they will take the lead in this as they have in some other actions indicative of advance,—that they will erelong understand the impropriety of attempting to measure value by means of merchandise, that is, by a means that is subject to variations of quantity,—a conclusion that may not appear obvious in this aspect, but it will be readily understood that in commerce a variable measure is absurd in theory and intolerable in practice. Yet this is precisely parallel with using gold, or any other article of merchandise, as a measure of value.
The elements of currency are value, a commercial relation derived from persons, and quantity, a property of things derived heretofore from the precious metals or their representatives. But this quantity is inconstant, and to use an inconstant quantity as a measure, is absurd. The quantity of the currency may, how-
