Tota lValue

If it is impossible to measuresubjective use-value, it follows
directlythatitis impracticable to ascribe'quantity' to it. Wemay
say, the valueofthis commodityis greaterthan the valueofthat;
butit is notpermissiblefor us to assert, this commodityis worth
so much.Suchawayofspeakingnecessarilyimplies adefiniteunit.
It really amountsto stating howmanytimes a givenunitis con-tained in the quantityto bedefined. Butthis kindofcalculationis
quiteinapplicable to processesofvaluation.
Theconsistentapplicationofthese principlesimplies a criticism
also ofSchumpcter'sviews onthe total valueofastockofgoods.
Accordingto Wieser,the total valueofastockofgoodsis givenby
multiplYingthe numberofitems orportionsconstitutingthe stock
bytheir marginalutilityatanygivenmoment.Theuntenabilityof
this argumentis shown bythe fact that it wouldprovethat the
totalstockofafreegoodmustalwaysbeworthnothing. Schumpeter
therefore suggests a different formula in whicheach portion is
multipliedbyanindex correspondingto its positiononthe value-scale (which, by the way,is quite arbitrary) and these products
arethen addedtogether orintegrated. Thisattemptatasolution,
like the preceding,hasthe defectofassumingthat it is possibleto
measuremarginalutilityand'intensity' ofvalue. Thefactthatsuch
measurementis impossible renders bothsuggestions equallyuseless.
Masteryofthe problemmustbesoughtinsomeotherway.
Valueis alwaystheresultofaprocessofvaluation. Theprocessof
valuationcomparesthesignificanceoftwocomplexesofcommodities
from the point ofviewoftheindividual makingthevaluation. The
individual makingthevaluationandthecomplexesofgoodsvalued,
i.e. the subject and the objects ofthe valuation, mustenter as
indivisible elementsinto anygivenprocessofvaluation. Thisdoes
notmeanthat they arenecessarilyindivisible in otherrespects as
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MEASUREMENTOFVALUE
well,whetherphysicallyoreconomically. Thesubjectofanactof
valuationmayquitewellbeagroupofpersons,aStateorsocietyor
family, so long as it actsin this particularcaseas a unit,through
a representative. Andthe objectsthus valuedmaybecollections
ofdistinctunitsofcommodities so long as they haveto bedealt
within this particularcaseasawhole.Thereis nothingto prevent
eithersubject orobjectfrom beinga single unitfor the purposes
ofonevaluationeventhoughinanothertheircomponentpartsmay
beentirelyindependentofeachother. Thesamepeoplewho,acting
together through arepresentative asasingleagent,suchasaState,
makeajudgement as to the relative valuesofa battleshipand a
hospital,arethe independent subjects ofvaluationsofothercom-modities,such as cigars andnewspapers. Itis just the same with
commodities. Modernvaluetheoryis basedonthefactthatitis not
the abstractimportance ofdifferentkindsofneedthat determines
the scales ofvalues, butthe intensity ofspecific desires. Starting
from this, the law ofmarginalutility wasdeveloped in a form
that referred primarilyto the usualsortofcasein whichthe collec-tions ofcommoditiesaredivisible. Butthere arealsocasesin which
the total supplymustbevaluedasitstands.
Supposethat an economically-isolated individual possesses two
cowsandthreehorsesandthattherelevantpartofhisscaleofvalues
(thatitemvaluedhighestbeingplacedfirst) is asfollows: I,acow;
2,ahorse;3,ahorse;4,ahorse; 5,acow. Ifthis individual hasto
choosebetweenonecowandonehorsehewillratherbeinclined to
sacrificethe cowthan the horse. Ifwildanimalsattackoneofhis
cowsandoneofhishorses,anditis impossible forhimto saveboth,
then hewilltry to savethe horse. Butifthe wholeofhisstock of
eitheranimalis indanger,hisdecisionwillbedifferent. Supposing
thathisstableandcowshedcatchfireandthathecanonlyrescuethe
occupantsofoneandmustleave the othersto their fate, then ifhe
valuesthreehorsesless thantwo cowshewillattempttosavenotthe
threehorsesbutthetwocows. Theresultofthatprocessofvaluation
whichinvolves achoicebetweenonecowandonehorseis ahigher
estimationofthehorse. Theresultoftheprocessofvaluationwhich
involves achoicebetweenthe wholeavailablestockofcowsandthe
wholeavailablestockofhorsesis ahigherestimationofthe stockof
cows.
Valuecanrightlybespokenofonlywithregardto specificactsof