Money is a Commodity

Coinage a Convenience

Essentials of Money recent years, but on the whole these metals are nearest uniform in value - fluctuate less than other commodities. Divisibility is the quality which permits a metal to be divided without loss of value. When a $20 gold piece is cut into a number of small parts, the sum of these will be $20 less, of course, the few atoms lost in the operation of cutting, which are very insignificant. All parts of metallic money should be homogeneous, that is, of the same quality, so that equal weights will have exactly the same value. There may be different qualities of steel or iron, but of pure gold or silver there is only one quality.

As an instrument of commerce and an aid to the progress and welfare of man, money is indispensable. Without it division of labor to any considerable extent would be impossible; there would be little inducement to work when the products of one's labor could not be disposed of without finding persons who happened to want such commodities and have others to give in return that he himself would desire. The fact that there is in universal circulation a commodity, the holders of which are ready to exchange for the services of the farmer, mechanic, artist and inventor, is a stimulus to effort and industry, and brings thousands of products to market which could otherwise never have come into existence. The use of money tends to bring mankind into closer relations of inter-dependence, thus broadening the mind and character, and teaching indirectly the doctrine of the universal brotherhood of man. By distributing the products of labor over the earth's surface where and when they are needed, it is the means of banishing famine, while on the other hand the absence of money tends to isolate man. Isolation breeds suspicion and jealousy and these lead to strife, war, slavery and famine.