How can commodity money provide a measure of value?

Commodity money is the value of the things from which the commodity is made. The examples of the same are gold, silver, stones wtc., which are used as a medium of exchange. These commodities have intrinsic values and do not need the desired end product directly (money) because commodity itself has a particular value. They can be stored and are universally accepted as the value itself. 

Americans agreed to the settlement terms established by the mexican government.