| This question <67|135-1> overall <127-2|127-4> Senco: <110|127-4>. |
| Question 147: The difference between the Money form and the Universal equivalent form is a small one; nevertheless it has important implications. Elaborate. |
| [127-3] Senco: There are four forms of value; 1-Simple form, 2-Expanded form, 3-Universal equivalent form, and 4-Money form. Because all commodities contain value, ( value being the exchangeability of commodities) relations of equivalence can be established. |
| The simplest expression of equivalence between two commodities has been expressed as 20 yards of linen = 1 coat. This simple form contains an expression of value, which can be seen from the viewpoint of the linen weaver, and automatically turns into the expanded form because the linen weaver needs more than coats to live (Hans [60]). |
| The 20 yards of linen is then equated to a whole range of other commodities (PowderNow [55]). 20 yards of linen = 1 coat, or 10 lbs coffee, or 20 lbs tea, etc. This expanded form is a transition to the univaersal equivalent form (Hans [60]). The linen then switches sides of the equation and “other producers now express the value of hteir commodities in linen” (Hans [60]). |
| Now 1 coat, or 10 lbs coffee, or 20 lbs tea, etc = 20 yards of linen. Hans points out once again in [60] the requires coordination by everyone. they all must agree which commodity they will use to express their values. |
| Finally if linen is to reach the money form, another social agreement must be made to use linen and never anything else as general equivalent. If this agreement is made then linen would be in the money form (Hans [67]). |
| As Hans points out in [67] if linen does take the money form, then a novel thing has occurred. Particular use values have been combined with a particular form of value. |
| Hans continues to explain in [67] the implications this has. He tells use that as long as the general equivalent is created temporarily then there is no guarantee this particular commodity will remain the general equivalent for long, or that this particular form of value is the same in other locations. Furthermore, Hans asserts in [67] that if the things mentioned above did occur then gold hoarding, gold rushes, or even Capitalism would not be possible. |
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