A Treatise on Political Economy - The Production, Distribution, and Consumption of Wealth

definite site. But the point of comparison varies in amount, according to how much value the appraiser places on it. If valued at 20,000 francs original: "fr.", the house is considered to be equivalent to a certain number of silver coins weighing 5 grams original: "grammes" with a mixture of ¹⁄₁₀ alloy. If it is valued at 22,000 francs or 18,000 francs, this is simply a variation in the quantity of the commodity that serves as the specific point of comparison. Similarly, if that point of comparison were wheat, the variable quantity of that commodity would express the degree of value.

Valuation is vague and arbitrary when there is no guarantee that it will be generally accepted by others. The owner of the house may think it is worth 22,000 francs, while an unbiased person would value it at no more than 18,000 francs; and probably neither would be right. But if another person, or a dozen other persons, are willing to give a specific amount of other commodities for it—say 20,000 francs or 1,000 hectolitres original: "hectol."; a metric unit of volume equal to 100 liters. of wheat—we may conclude the estimate is correct. A house that will sell for original: "fetch" 20,000 francs on the market is worth that sum. *

• My brother, Louis Say of Nantes, has challenged this position in a short pamphlet original: "tract" entitled Main Causes of the Wealth and Misery of Nations and Individuals original French: "Principales Causes de la Richesse et de la Misère des Peuples et des Particuliers", published in octavo original: "8vo."; a book size where the sheets are folded to create eight leaves. in Paris by Déterville. He establishes the principle that objects are items of wealth solely based on their actual usefulness original: "utility", and not on their admitted or recognized usefulness. From a logical standpoint, his position is certainly correct; but in this science, relative value is the only guide. Unless the degree of usefulness is measured by a scale of comparison, it remains quite indefinite and vague—and even at the same time and place, it is at the mercy of individual whim. The definite original: "positive" nature of value had to be established before political [economy could be understood].