MARX & ENGELS COLLECTED WORKS VOLUME 36 Karl Marx - Capital Volume II KARL MARX FREDERICK ENGELS Volume 36 Karl Marx - Capital Volume II 2010 Lawrence & Wishart Electric Book file:///G|/Temp/menewisbns/intros/meint_36.htm[31/08/2011 18:35:49] Editorial commissions: GREAT BRITAIN: Jack Cohen, Maurice Cornforth, Maurice Dobb, E. J. Hobsbawm, James Klugmann, Margaret Mynatt. USA: James S. Allen, Philip S. Foner, Dirk J. Struik, William W. Weinstone. USSR: N. P. Karmanova, V. N. Pavlov, M. K. Shcheglova, T. Y. Solovyova, Y. V. Yeremin, P. N. Fedoseyev, L. I. Golman, A. I. Malysh, A. G. Yegorov, V. Y. Zevin. Digital Edition Copyright © Lawrence & Wishart 2010 Digital production: Electric Book ISBN 978-1-84327-980-8 All rights reserved. Apart from any fair dealing for the purpose of private study, research, criticism or review, no part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, electrical, chemical, mechanical, optical, photocopying, recording or otherwise, without the prior permission of the copyright owner. file:///D|/Temp/menewisbns/me36.htm[09/12/2010 15:46:35] Contents Preface IX KARL MARX CAPITAL A Critique of Political Economy Volume II F. Engels. Preface to the First German Edition 5 F. Engels. Preface to the Second German Edition 24 BOOK II THE PROCESS OF CIRCULATION OF CAPITAL PART I THE METAMORPHOSES OF CAPITAL AND THEIR CIRCUITS Chapter I. The Circuit of Money Capital 31 I. First Stage. M — C 32 II. Second Stage. Function of Productive Capital 40 III. Third Stage. C'—M' 44 IV. The Circuit as a Whole . . . 54 Chapter II. The Circuit of Productive Capital 70 VI Contents I. Simple Reproduction 71 II. Accumulation and Reproduction on an Extended Scale . . 84 III. Accumulation of Money 89 IV. Reserve Fund 91 Chapter III. The Circuit of Commodity Capital 92 Chapter IV. The Three Formulas of the Circuit 105 Natural, Money and Credit Economy 120 The Meeting of Demand and Supply 122 Chapter V. The Time of Circulation 125 Chapter VI. The Costs of Circulation 133 I. Genuine Costs of Circulation 133 1. The Time of Purchase and Sale 133 2. Bookkeeping 137 3. Money 139 II. Costs of Storage 140 1. Formation of Supply in General 141 2. The Commodity Supply Proper 147 III. Costs of Transportation 152 PART II THE TURNOVER OF CAPITAL Chapter VII. The Turnover Time and the Number of Turnovers . . 156 Chapter VIII. Fixed Capital and Circulating Capital 159 I. Distinctions of Form 159 II. Components, Replacement, Repair, and Accumulation of Fixed Capital 172 Chapter IX. The Aggregate Turnover of Advanced Capital. Cycles of Turnover 185 Chapter X. Theories of Fixed and Circulating Capital. The Physiocrats and Adam Smith 190 Chapter XI. Theories of Fixed and Circulating Capital. Ricardo . . 217 Chapter XII. The Working Period 230 Chapter XIII. The Time of Production 239 Chapter XIV. The Time of Circulation 249 Chapter XV. Effect of the Time of Turnover on the Magnitude of Ad vanced Capital 257 I. The Working Period Equal to the Circulation Period . . . 266 Contents VII II. The Working Period Greater Than the Period of Circulation 270 III. The Working Period Smaller Than the Circulation Period 275 IV. Conclusions 279 V. The Effect of a Change of Prices 285 Chapter XVI. The Turnover of Variable Capital 293 I. The Annual Rate of Surplus Value 293 II. The Turnover of the Individual Variable Capital 307 III. The Turnover of the Variable Capital from the Social Point of View 312 Chapter XVII. The Circulation of Surplus Value 318 I. Simple Reproduction 322 II. Accumulation and Reproduction on an Extended Scale . . 342 PART III THE REPRODUCTION AND CIRCULATION OF THE AGGREGATE SOCIAL CAPITAL Chapter XVIII. Introduction 349 I. The Subject Investigated 349 II. The Role of Money Capital 352 Chapter XIX. Former Presentations of the Subject 357 I. The Physiocrats 357 II. Adam Smith 360 1. Smith's General Points of View 360 2. Adam Smith Resolves Exchange Value into v + s . .. 368 3. The Constant Part of Capital 371 4. Capital and Revenue in Adam Smith 376 5. Recapitulation 383 III. Later Economists 388 Chapter XX. Simple Reproduction 390 I. The Formulation of the Question 390 II. The Two Departments of Social Production 394 III. Exchange Between the Two Departments I versus II . 397 (v + I) C IV. Exchange Within Department II. Necessities of Life and Ar ticles of Luxury 401 V. The Mediation of Exchange by the Circulation of Money . 410 VI. The Constant Capital of Department I 420 VII. Variable Capital and Surplus Value in Both Departments. 424 VIII. The Constant Capital in Both Departments 427 VIII Contents IX. A Retrospect to Adam Smith, Storch, and Ramsay . . .. 432 X. Capital and Revenue: Variable Capital and Wages . . .. 436 XI. Replacement of the Fixed Capital 448 1. Replacement of the Wear and Tear Portion of the Value in the Form of Money 452 2. Replacement of Fixed Capital in Natura 457 3. Results 466 XII. The Reproduction of the Money Material 469 XIII. Destutt de Tracy's Theory of Reproduction 480 Chapter XXI. Accumulation and Reproduction on an Extended Scale 488 I. Accumulation in Department I 491 1. The Formation of a Hoard 491 2. The Additional Constant Capital 495 3. The Additional Variable Capital 501 II. Accumulation in Department II 501 III. Schematic Presentation of Accumulation 506 1. First Illustration 510 2. Second Illustration 514 3. Replacement of II in Accumulation 520 C IV. Supplementary Remarks 522 NOTES AND INDEXES Motes 527 Name Index 535 Index of Quoted and Mentioned Literature 539 Index of Periodicals 546 ILLUSTRATIONS Title page of the First German Edition of Volume II of Capital . . 3 Title page of the Second German Edition of Volume II of Capital . 26 Facsimile of a page of the manuscript of Capital, Volume II, by Karl Marx 55 Facsimile of a page of the manuscript of Capital, Volume II, edited and copied by Frederick Engels 59 Note: Pages 1-5 and 26-31 have been consolidated to meet U.S. production requirements. IX Preface Volume 36 of the Collected Works of Marx and Engels contains the second volume of Marx's Capital published by Engels on the basis of the author's rough manuscripts. It also includes Engels' prefaces to the first and second German editions, as well as a short compilation of passages taken by Engels from the author's Manuscripts II-VIII. Volume II deals with the circulation of individual and social capi tal, its metamorphoses and its realisation in the form of value and material objects. Marx divides the total social production into two major de partments: the production of the means of production and that of the articles of consumption. He establishes the necessary proportions be tween them and between their component parts (constant and vari able capital and surplus value) and clarifies the general conditions of simple and expanded reproduction, that is, reproduction on the same scale and on an extended scale. Volume II of Capital is a link between an analysis of the process of the production of capital made in Volume I and that of its concrete types and forms in bourgeois society (profit, ground rent, interest) in Volume III. The subject of Volume III, according to Marx himself, is the process of capitalist production as a whole. The present English edition of Volume II follows the second Ger man edition published in 1893 under Engels' editorship. It is based on the English edition published by Progress Publishers, which X Preface made extensive use of the English translation of the second vol ume of Capital by Ernest Untermann printed by Charles H. Kerr & Co., Chicago, 1907. When comparing the first and second German editions with Marx's manuscripts and with the final version edited by Engels, the editors discovered a number of misprints and printers' errors in the 1893 edition, checked factual data and calculations and corrected in accuracies. Obvious slips of the pen in Marx's text have been correct ed without comment. Marx's and Engels' footnotes are indicated by numbers in superscript with a bracket, while the editors' footnotes are indicated by index let ters, and editorial notes by numbers in superscript. The insertions made by Engels in Marx's text when preparing it for the press and in quotations are given in double oblique lines. Foreign words and expressions are given as used by Marx, with the translation supplied in footnotes where necessary. English phrases, expressions and individual words occurring in the original are set in small capitals. Longer passages and quotations in English are en closed within asterisks. All quotations from English and American authors have been checked with the original sources. In all cases the form of quotation used by Marx is respected. The lan guage in which Marx quotes is indicated in footnotes unless it is Ger man. In this volume the editors have preserved the terminology used in the Engels-authorised English translation of Volume I of Capital, which is published in Volume 35 of the present edition. The volume was compiled, the preface, notes and indexes written by Tatyana Vasilyeva (Russian Independent Institute of Social and National Problems) and edited by Lydia Belyakova, Mzia Pitskhelauri (Progress Publishing Group Corporation) and Alexander Malysh, scien tific editor (Russian Independent Institute of Social and National Problems). The volume was prepared for the press by Mzia Pitskhelauri (Progress Publishing Group Corporation).