WHAT IS VALUE ?
[To TEE EDITOR Of THE " SPECTATOR:1 Sul,—May I suggest a slight correction in No. XIV. of the admirable "Letters to a Working Man" (Spectator, April 4th) ? Demand is illustrated by a man for some reason or other offering a shilling for pebbles weighing an ounce each, which are supposed to be scarce. Then, it is said, such pebbles, valueless before, would have an exchange value, because demand would meet limitation of supply. The offer of a shilling, however, itself fixes the exchange value. Of course, unless the man is a fool, both demand and the fact that supply is limited are included in his reasons for fixing the price at a shilling. But even if he is a fool, his offer none the less fixes the exchange value until his craze or his fortune comes to an end or the supply of pebbles runs out,—that is, until either demand or supply ceases altogether. The late "Right to Work Bill" fixed the price of pebbles at a shilling, independently of demand or limitation of supply. Such arbitrary attempts to fix prices must sooner or later break down. I suggest that the sentence in which demand is illus- trated should run somewhat in this way : "Suppose, however, that pebbles weighing an ounce each were urgently needed in considerable quantities for some purpose or other."—I am, Sir, Bo., HAROLD GRAHAM. Parkgate Road, Neston, Chester.
[We are grateful to our correspondent for his most useful correction and amendment.—ED. Spectator.]
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