Marx says that under bimetallism one metal only is the measure of value.
We say that metal is never the measure of value, not even under monometallism; but that the total quantity of money which circulates is the measure of value in all cases whether under monometallism, bimetallism, paper money, or counterfeit money.
Marx says that commodities enter circulation with a fixed price.
We say that although the price of a particular article is fixed at the moment of sale, yet that same article immediately thereafter, or another article of the same kind, may have a different price; that when goods are put upon the market for sale their asking price is continually changing.
Marx says that gold enters circulation with a given value
We say that although at the moment of a particular purchase the value of gold is fixed, yet between purchases the value of gold may be continually changing.
Marx says that although gold may be mined and coined, it can not be put into circulation, unless commodities exist to correspond with the gold; and implies that although products may be produced, they cannot be put upon the market as commodities and sold, unless enough money is in circulation to enable them to fetch a given price.
We say that commodities are sold for what they will fetch, be it much or little, and that gold when coined will be put into circulation for what it will buy, be it much or little.
Marx admits that the quantity of money is directly connected with price sum, or respectivly price level. One is the cause, the other is the effect. But which is which? Marx says price sum is the cause and quantity of money is the effect.
We say that money is prior in time, and must first exist before there can be any such thing as price, or price sum or price level; that money is the cause and price sum is the effect.
Marx says with Adam Smith that a country needs only so much money and that no more will circulate.
We say that a country will use all the money that the law permits to be made (except customary hoards). In one sense Marx's claim is partially true, but only partially—just enough so to show that it is thoroughly false. For instance, i. several countries are on a gold standard each one can circulate only its proportionate share of money to keep its price level the same as in the other countries. But take all these countries together, let them increase their money simultaneously and they can increase it tenfold or a hundredfold. Again, one of these countries alone, as long as it has gold to export, can by exporting it increase the money of the other countries and thereby make it possible to increase its own circulation over what it was before, without losing its parity of exchange with the other countries.
