with such atrocious want of the critical faculty and such spurious erudition deserved, in spite of his Protectionist her esy, to become the secret source of the harmonious wisdom of a Bastiat, and of all the other Free Trade optimists of to-day,

PART VIL

THE ACCUMULATION OF CAPITAL.

THE conversion of a sum of money into means of production and labour-power, is the first step taken by the quantum of value that is going to function as capital. This conversion takes place in the market, within the sphere of circulation. The second step, the process of production, is complete so soon as the means of production have been converted into commodities whose value exceeds that of their component parts, and, therefore, contains the capital originally advanced, plus a surplus-value. These commodities must then be thrown into circulation. They must be sold, their value realised in money, this money afresh converted into capital, and so over and over again. This circular movement, in which the same phases are continually gone through in succession, forms the circulation of capital.

The first conditior of accumulation is that the capitalist must have contrived to sell his commodities, and o reconvert into capital the greater part of the money so received. In the following pages we shall assume that capital circulates in its normal way. The detailed analysis of the process will be found in Book II.

The capitalist who produces surplus-value-i.e., who extracts unpaid labour directly from the labourers, and fixes it in commodities, is, indeed. the first appropriator, but by no means the ultimate owner, of thi surplus value. He has to share it with capitalists, ith landowners, &c., who fulfill other functions in the comple of social production. Surplusvalue, therefore, splits up .nto various parts. Its fragments fall to various categories of persons, and take various forms,

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independent the one of the other, such as profit, interest, merchants' profit, rent, &c. It is only in Book III. that we can take in hand these modified forms of surplus-value.

On the one hand, then, we assume that the Capitalist sells at their value the commodities he has produced, without concerning ourselves either about the new forms that capital assumes while in the sphere of circulation, or about the concrete conditions of reproduction hidden under these forms. On the other hand, we treat the capitalist producer as owner of the entire surplus-value, or, better perhaps, as the representative of all the sharers with him in the booty. We, therefore, first of all consider accumulation from an abstract point of view-i.e., as a mere phase in the actual process of production.

So far as accumulation takes place, the capitalist must have succeeded in selling his commodities, and in reconverting the sale-money into capital. Moreover, the breaking-up of sur plus-value into fragments neither alters its nature nor the conditions under which it becomes an element of accumulation. Whatever be the proportion of surplus-value which the industrial capitalist retains for himself, or yields up to others, he is the one who, in the first instance, appropriates it. We, there fore, assume no more than what actually takes place. On the other hand, the simple fundamental form of the process of accumulation is obscured by the incident of the circulation which brings it about, and by the splitting up of surplus-value. An exact analysis of the process, therefore, demands that we should, for a time, disregard all phenomena that hide the play of its inner mechanism.

CHAPTER XXIII.

SIMPLE REPRODUCTION.

WHATEVER the form of the process of production in a society, it must be a continuous process, must continue to go periodically through the same phases. A society can no more cease

to produce than it can cease to consume. When viewed, there fore, as a connected whole, and as flowing on with incessant renewal, every social process of production is, at the same time, a process of reproduction.

The conditions of production are also those of reproduction. No society can go on producing, in other words, no society can reproduce, unless it constantly reconverts a part of its products into means of production, or elements of fresh products. All other circumstances remaining the same, the only mode by which it can reproduce its wealth, and maintain it at one level, is by replacing the means of production-i.e., the instruments of labour, the raw material, and the auxiliary substances consumed in the course of the year by an equal quantity of the same kind of articles; these must be separated from the mass of the yearly products, and thrown afresh into the process of production. Hence, a definite portion of each year's product belongs to the domain of production. Destined for productive consumption from the very first, this portion exists, for the most part, in the shape of articles totally unfitted for individual consumption.

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. It is only because his money constantly functions as capital that the economical guise of a capitalist attaches to a man. If, for instance, a sum of £100 has this year been converted into capital, and produced a surplus-value of £20, it must continue during next year, and subsequent years, to repeat the same operation. As a periodic increment of the capital advanced, or periodic fruit of capital in process, surplus-value acquires the form of a revenue flowing out of capital.1

1 "Mais ces riches, qui consomment les produits du travail des autres, ne peu. vent les obtenir que par des échanges [purchases of commodities.]. S'ils donnent cependant leur richesse acquise et accumulée en retour contre ces produits nouveaux qui sont l'objet de leur fantaisie, ils semblent exposés à épuiser bientôt leur fonds de réserve; ils ne travaillent point, avons-nous dit, et ils ne peuvent même travailler; on croirait donc que chaque jour doit voir diminuer leurs vieilles richesses, et que lorsqu'il ne leur en restera plus, rien ne sera offert en éxchange aux ouvriers qui

If this revenue serve the capitalist only as a fund to provide for his consumption, and be spent as periodically as it is gained, then, cæteris paribus, simple reproduction will take place. And although this reproduction is a mere repetition of the process of production on the old scale, yet this mere repetition, or continuity, gives a new character to the process, or, rather, causes the disappearance of some apparent characteristics which it possessed as an isolated discontinuous process.

The purchase of labour-power for a fixed period is the prelude to the process of production; and this prelude is constantly repeated when the stipulated term comes to an end, when a definite period of producti n, such as a week or a month, has elapsed. But the labourer is not paid until after he has expended his labour-power, and realised in commodities not only its value, but surplus-value. He has, therefore, produced not only surplus-value, which we for the present regard as a fund to meet the private consumption of the capitalist, but he has also produced, before it flows back to him in the shape of wages, the fund out of which he himself is paid, the variable capital; and his employment lasts only so long as he continues to reproduce this fund. Hence, that formula of the economists, referred to in Chapter XVIII., which represents wages as a share in the product itself.1 What flows back to the labourer in the shape of wages is a portion of the product that is continuously reproduced by him. The capitalist, it is true, pays him in money, but this money is merely the transmuted form of the product of his labour. While he is converting a portion of the means of production into products, a portion of his former product is being turned into money. It is his labour of last week, or of last year, that pays for his iabour-power this week or this year. The illusion begotten by

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travaillent exclusivement pour eux. Mais dans l'ordre social, la richesse acquis la propriété de se reproduire par le travail d'autrui, et sans que son propriétaire y concoure. La richesse, comme le travail, et par le travail, donne un fruit annuel qui peut être détruit chaque année sans que le riche en devienne plus pauvre. Ce fruit est le revenu qui nait du capital." (Sismondi: Nouv. Princ. d'Econ. Pol. Paris, 1819. t. I. pp. 81-82.)

1 "Wages as well as profits are to be considered, each of them, as really a por tion of the finished product." (Ramsay, 1.c., p. 142.) "The share of the product which comes to the labourer in the form of wages." (J. Mill, Elements, &c. Trans lated by Parissot. Paris, 1823. p. 34.)