Capital Volume 2, Part 2
Turnover of Capital
In the fourth paragraph of
Chapter 7, which is the first chapter of Part 2 of Capital Volume 2
(“The Turnover of Capital”),
Karl Marx quotes Chapter 23 of “Capital”, Volume 1 as follows:
“We have seen previously:
“If production be capitalistic in form, so,
too, will be reproduction. Just as in the former the labour-process figures but
as a means towards the self-expansion of capital, so in the latter it figures
but as a means of reproducing as capital — i.e., as self-expanding value — the
value advanced.”
Capital Volume 2 is an
elaboration, and not a contradiction or a supersession, of Capital Volume 1.
Far from the latter being the case, the concepts of “accumulation” and of
“reproduction” are rather strongly confirmed and reinforced, and in the same
sense as they were introduced in Volume 1.
Part 2 proceeds to cover
variations from the simple, typical cases, so as to prove the validity of the
general theory advanced in Volume 1.
For the purpose of
stimulating discussion on Part 2, we offer for reading its final chapter,
Chapter 17 (linked below as a downloadable file).
Note that Marx continues to
reference back to “Buch I” (i.e. Capital,
Volume 1).
Here is a typical paragraph
from the early part of the attached chapter:
“The simplest
form in which the additional latent money-capital may be represented is that of
a hoard. It may be that this hoard is additional gold or silver secured
directly or indirectly in exchange with countries producing precious metals.
And only in this manner does the hoarded money in a country grow absolutely. On
the other hand it may be — and is so in the majority of cases — that this hoard
is nothing but money which has been withdrawn from circulation at home and has
assumed the form of a hoard in the hands of individual capitalists. It is
furthermore possibly that this latent money-capital consists only of tokens of
value — we still ignore credit-money at this point — or of mere claims of
capitalists (titles) against third persons conferred by legal documents. In all
such cases, whatever may be the form of existence of this additional
money-capital, it represents, so far as it is capital in spe, nothing but
additional and reserved legal titles of capitalists to future annual additional
social production.”
This is followed by a very
lengthy quotation from William Thompson in an 1850 book, and then this summary
of Marx’s:
“For
reproduction only two normal cases are possible, apart from disturbances, which
interfere with reproduction even on a fixed scale.
“There is
either reproduction on a simple scale.
“Or there is
capitalisation of surplus-value, accumulation.”
This is what Capital Volume 2
is about: Reproduction, Accumulation, and the relation between these two.
Later on, Marx writes
directly:
“None of the
laws established with reference to the quantity of the circulating money in the
circulation of commodities (Buch I, Kap. III), [English edition: Ch. III. —
Ed.] are changed in any way by the capitalist character of the process of
production.”
Yet then he develops, in
various ways, a question expressed most simply as follows:
“The
capitalist class remains consequently the sole point of departure of the
circulation of money. If they need £400 for the payment of means of production
and £100 for the payment of labour-power, they throw £500 into circulation. But
the surplus-value incorporated in the product, with a rate of surplus-value
incorporated in the product, with a rate of surplus-value of 100%, is equal in
value to £100. How can they continually draw £600 out of circulation, when they
continually throw only £500 into it? Nothing comes from nothing. The capitalist
class as a whole cannot draw out of circulation what was not previously thrown
into it.”
Marx continues to
problematise this question until the end of the chapter, and leaves some of his
questions unanswered.
For example, on the question
of the substitution of credit for gold in the process of circulation, Marx
writes:
“…so far as
the expediencies developing with the credit system have this effect, they
increase capitalist wealth directly, either by performing a large portion of
the social production and labour-power without any intervention of real money,
or by raising the functional capacity of the quantity of money really
functioning.
“This
disposes also of the absurd question whether capitalist production in its
present volume would be possible without the credit system (even if regarded
only from this point of view), that is, with the circulation of metallic coin
alone. Evidently this is not the case. It would rather have encountered
barriers in the volume of production of precious metals. On the other hand one
must not entertain any fantastic illusions on the productive power of the
credit system, so far as it supplies or sets in motion money-capital. A further
analysis of this question is out of place here.”
We must look for those
answers in Capital Volume 3, which we will come to immediately after dealing
with the third and final Part of Capital Volume 2. These matters are crucial
for understanding the current credit crisis, or “Global Economic Meltdown”, or
recession, or bank crisis, which has been going on since 2008.
·
The above is to
introduce the original reading-text: Chapter
17, The Circulation of Surplus Value, from Capital, Volume 2, Karl Marx.
