more to be said on the subject. The economic dogma of money, at least, was supposed to be fairly complete. And yet—in my judgment—the systematic treatment of the principles of money has remained undeveloped almost to the present day. There is scarcely any part of the field which can be regarded as thoroughly disposed of. Indeed, the very definition of money itself is to-day under the most critical examination; and with the definition goes the question as to the functions performed by money. On these points—like investigators in other sciences—we must frankly admit our lack of agreement.
First of all, it should be emphasized that the dispute about the definition and functions of money is not merely a question of words; it relates, in truth, to fundamental problems of great practical import. Every day the statesman and man of affairs are confronted by difficulties connected with the primary effect of 'money' on prices in general; but it is at once patent that the relation of the value, or quantity, of 'money' to prices can not be disposed of until we have determined what we mean by 'money.' As at present used, 'money' has no scientific precision; it is often carelessly employed in many different senses by one and the same author.
Evidently, before a rational definition of money can be found, some agreement based upon an analysis and description of the functions actually performed by money must be reached. If several dissimilar services are rendered by monetary instruments; if each of these services is associated by usage with 'money'; and if it happens that different things are employed in these different services—then, while authors may agree as to many of the functions of money, it may easily happen that they may still disagree as to which shall be regarded as essential to the definition of money. Money may have different meanings according as it is made to include, or exclude, some or any unquestioned services associated by usage with money. In such ways, an important difference might arise between that which is money in an economic, or true sense, and that which is money in a legal sense. In fact, the economic relations of money ought to be scientifically ascertained before legal functions should be assigned to it. If, for instance, the state should apply the quality of legal tender loosely to some instrument which does not completely fulfil all the functions of money, then that money is not made thereby in the economic sense true money. It thus often happens that incomplete forms of money exist, which give the public much difficulty to classify and define. The expressions 'substitutes for money,' or 'surrogates,' or 'representative money,' have arisen which depend for exactness upon the primary meaning assigned to the money on which they depend. The very functions of money need careful limitation.
