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Proudhon, P.-J. (Pierre-Joseph), 1809-1865

"The Philosophy of Misery"

Why, then,
do they not see that money is the written law of commerce, the
type of exchange, the first link in that long chain of creations
all of which, as merchandise, must receive the sanction of
society, and become, if not in fact, at least in right,
acceptable as money in settlement of all kinds of transactions?
"Money," M. Augier very truly says, "can serve, either as a means
of authenticating contracts already made, or as a good medium of
exchange, only so far as its value approaches the ideal of
permanence; for in all cases it exchanges or buys only the value
which it possesses."[8]

[8] "History of Public Credit."

Let us turn this eminently judicious observation into a general
formula.
Labor becomes a guarantee of well-being and equality only so far
as the product of each individual is in proportion with the mass;
for in all cases it exchanges or buys a value equal only to its
own.
Is it not strange that the defence of speculative and fraudulent
commerce is undertaken boldly, while at the same time the attempt
of a royal counterfeiter, who, after all, did but apply to gold
and silver the fundamental principle of political economy, the
arbitrary instability of values, is frowned down? If the
administration should presume to give twelve ounces of tobacco
for a pound,[9] the economists would cry robbery; but, if the
same administration, using its privilege, should increase the
price a few cents a pound, they would regard it as dear, but
would discover no violation of principles.


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