34. Every merchandize may serve as a scale or common measure,
by which to compare the value of any other.
It follows from hence, that in a country where the commerce
is very brisk, where there are many productions and much
consumption, where there are great supplies and a great demand
for all sorts of commodities, every sort will have a current
price, having relation to every other species; that is to say,
that a certain quantity of one will be of equal value to a
certain quantity of any others. Thus the same quantity of corn
which is worth eighteen pints of wine, is also the value of a
sheep, a piece of leather, or a certain quantity of iron; and all
these things have, in the transactions of trade an equal value.
To express or make known the value of any particular thing, it is
evident, that it is sufficient to announce the quantity of any
other known production, which will be looked on as an equivalent
for it. Thus, to make known what a piece of leather of a certain
size is worth, we may say indifferently, that it is worth three
bushels of corn, or eighteen pints of wine. We may by the same
method express the value of a certain quantity of wine, by the
number of sheep, or bushels of corn it will bring in trade.
We see by this, that every species of commodity that can be
an object of commerce, may be measured, as I may say, by each
other, that every one may serve as a common measure, or scale of
comparison to describe the value of every other species, and in
like manner every merchandize becomes in the hands of him who
possesses it, a means to procure all others — a sort of
universal pledge.
