Let us attribute, then, to things the peculiar qualities which belong to them—to air, to water, utility—to services, value. We may say with propriety that water is useful, because it has the property of allaying thirst; and it is the service which has value, because it is the subject of a convention previously debated and discussed. So true is this, that if the well is brought nearer, or removed to a greater distance, the Utility of the water remains the same, but its value is diminished or increased. Why? because the service is less or greater. The value, then, is in the service, seeing that it is increased or diminished according as the service is increased or diminished.
The diamond makes a great figure in works of Political Economy. It is adduced as an illustration of the laws of Value, or of the supposed disturbance of those laws. It is a brilliant weapon with which all the schools do battle. The English school asserts that “Value resides in labour.” The French school exhibits a diamond, and says—“Here is a commodity which exacts no labour and yet is of immense value.” The French school affirms that the foundation of value is utility, and the English school immediately brings forward the diamond in opposition to the [p140] illustrations drawn from air, light, and water. “The air is very useful,” says the English Economist, “but it possesses no value; the utility of the diamond is almost inappreciable, and yet it possesses more value than the whole atmosphere;” and the reader is inclined to say with Henri Quatre—“In sooth, they are both right.” They end by landing themselves in an error more fatal than both the others, and are forced to avow that value resides in the works of nature, and that that value is material.
My definition, as it seems to me, gets rid of these anomalies, and is confirmed rather than invalidated by the illustration which has been adduced.
I take a walk along the sea-beach, and I find by chance a magnificent diamond. I am thus put in possession of a great value. Why? Am I about to confer a great benefit on the human race? Have I devoted myself to a long and laborious work? Neither the one nor the other. Why, then, does this diamond possess so much value? Undoubtedly because the person to whom I transfer it considers that I have rendered him a great service,—all the greater that many rich people desire it, and that I alone can render it. The grounds of his judgment may be controverted—be it so. It may be founded on pride, on vanity—granted again. But this judgment has, nevertheless, been formed by a man who is disposed to act upon it, and that is sufficient for my argument.
Far from the judgment being based on a reasonable appreciation of utility, we may allow that the very reverse is the case. Ostentation makes great sacrifices for what is utterly useless.
In this case, the value, far from bearing a necessary proportion to the labour performed by the person who renders the service, may be said rather to bear proportion to the labour saved to the person who receives it. This general law of value, which has not, so far as I know, been observed by theoretical writers, nevertheless prevails universally in practice. We shall explain afterwards the admirable mechanism by which value tends to proportion itself to labour when it is free; but it is not the less true that it has its principle and foundation less in the effort of the person who serves than in the effort saved to him who is served.
The transaction relative to the diamond may be supposed to give rise to the following dialogue:—
“Give me your diamond, Sir.”
“With all my heart; give me in exchange your labour for an entire year.” [p141]
“Your acquisition has not cost you a minute’s work.”