From 957c21200faa213141a2d07ca03fe177375c90c1 Mon Sep 17 00:00:00 2001 From: Admin Date: Sun, 4 Dec 2022 23:41:11 -0500 Subject: Improved conversion for draft manuscript portions --- .../capital.htm.md | 20 ++++++++++---------- 1 file changed, 10 insertions(+), 10 deletions(-) (limited to 'content/marx/economic-and-philosophic-manuscripts/capital.htm.md') diff --git a/content/marx/economic-and-philosophic-manuscripts/capital.htm.md b/content/marx/economic-and-philosophic-manuscripts/capital.htm.md index 9cbe34c..643b750 100644 --- a/content/marx/economic-and-philosophic-manuscripts/capital.htm.md +++ b/content/marx/economic-and-philosophic-manuscripts/capital.htm.md @@ -36,7 +36,7 @@ Later we shall see first how the capitalist, by means of capital, exercises his What is capital? -“A certain quantity of *labour stocked *and stored up to be employed.” (Adam Smith, *op. cit.*, Vol. I, p. 295.) +“A certain quantity of *labour stocked* and stored up to be employed.” (Adam Smith, *op. cit.*, Vol. I, p. 295.) Capital is *stored-up labour*. @@ -45,7 +45,7 @@ Capital is *stored-up labour*. ## 2. The Profit of Capital -The *profit* or *gain of capital *is altogether different from the *wages of labour*. This difference is manifested in two ways: in the first place, the profits of capital are regulated altogether by the value of the capital employed, although the labour of inspection and direction associated with different capitals may be the same. Moreover in large works the whole of this labour is committed to some principal clerk, whose salary bears no regular proportion to the *||II, 2|* capital of which he oversees the management. And although the labour of the proprietor is here reduced almost to nothing, he still demands profits in proportion to his capital. (Adam Smith, [op. cit., Vol. I, p. 43](#TODO;../../../../../reference/archive/smith-adam/works/wealth-of-nations/book01/ch06.htm))[[11]](#TODO;footnote.htm#fn11) +The *profit* or *gain of capital* is altogether different from the *wages of labour*. This difference is manifested in two ways: in the first place, the profits of capital are regulated altogether by the value of the capital employed, although the labour of inspection and direction associated with different capitals may be the same. Moreover in large works the whole of this labour is committed to some principal clerk, whose salary bears no regular proportion to the *||II, 2|* capital of which he oversees the management. And although the labour of the proprietor is here reduced almost to nothing, he still demands profits in proportion to his capital. (Adam Smith, [op. cit., Vol. I, p. 43](#TODO;../../../../../reference/archive/smith-adam/works/wealth-of-nations/book01/ch06.htm))[[11]](#TODO;footnote.htm#fn11) Why does the capitalist demand this proportion between profit and capital? @@ -66,13 +66,13 @@ But though it is impossible to determine with precision what are the profits on The proportion which the usual market rate of interest ought to bear to the rate of clear profit, necessarily varies as profit rises or falls. Double interest is in Great Britain reckoned what the merchants call a good, moderate, reasonable profit, terms which mean no more than a *common and usual profit*. (Adam Smith, [op. cit., Vol. I, p. 87](#TODO;../../../../../reference/archive/smith-adam/works/wealth-of-nations/book01/ch09.htm).) -What is the *lowest *rate of profit? And what the *highest?* +What is the *lowest* rate of profit? And what the *highest?* -The *lowest *rate of ordinary profit on capital must always be *something more* than what is sufficient to compensate the occasional losses to which every employment of stock is exposed. It is this surplus only which is neat or clear profit. The same holds for the lowest rate of interest. (Adam Smith, [op. cit., Vol. I, p. 86](#TODO;../../../../../reference/archive/smith-adam/works/wealth-of-nations/book01/ch09.htm)) +The *lowest* rate of ordinary profit on capital must always be *something more* than what is sufficient to compensate the occasional losses to which every employment of stock is exposed. It is this surplus only which is neat or clear profit. The same holds for the lowest rate of interest. (Adam Smith, [op. cit., Vol. I, p. 86](#TODO;../../../../../reference/archive/smith-adam/works/wealth-of-nations/book01/ch09.htm)) - *||III, 2|* The *highest *rate to which ordinary profits can rise is that which in the price of the greater part of commodities eats *up the whole of the *rent *of the *land, and reduces the wages of labour contained in the commodity supplied to the *lowest rate,* the bare subsistence of the labourer during his work. The worker must always be fed in some way or other while he is required to work; rent can disappear entirely. For example: the servants of the East India Company in Bengal. (Adam Smith, [op. cit., Vol. I, pp. 86-87](#TODO;../../../../../reference/archive/smith-adam/works/wealth-of-nations/book01/ch09.htm)) + *||III, 2|* The *highest* rate to which ordinary profits can rise is that which in the price of the greater part of commodities eats *up the whole of the* rent *of the* land, and reduces the wages of labour contained in the commodity supplied to the *lowest rate,* the bare subsistence of the labourer during his work. The worker must always be fed in some way or other while he is required to work; rent can disappear entirely. For example: the servants of the East India Company in Bengal. (Adam Smith, [op. cit., Vol. I, pp. 86-87](#TODO;../../../../../reference/archive/smith-adam/works/wealth-of-nations/book01/ch09.htm)) Besides all the advantages of limited competition which the capitalist may *exploit* in this case, he can keep the market price above the natural price by quite decorous means. @@ -116,7 +116,7 @@ The plans and speculations of the employers of capitals regulate and direct all ## 4. The Accumulation of Capitals and the Competition among the Capitalists -The *increase of stock, *which raises wages, tends to lower the capitalists' profit, because of the competition amongst the capitalists. (Adam Smith, [op. cit., Vol. I, p. 78](#TODO;../../../../../reference/archive/smith-adam/works/wealth-of-nations/book01/ch09.htm).) +The *increase of stock,* which raises wages, tends to lower the capitalists' profit, because of the competition amongst the capitalists. (Adam Smith, [op. cit., Vol. I, p. 78](#TODO;../../../../../reference/archive/smith-adam/works/wealth-of-nations/book01/ch09.htm).) If, for example, the capital which is necessary for the grocery trade of a particular town “is divided between two different grocers, their competition will tend to make both of them sell cheaper than if it were in the hands of one only; and if it were divided among twenty, *||VI, 2|* their competition would be just so much the greater, and the chance of their combining together, in order to raise the price, just so much the less.” (Adam Smith, [op. cit., Vol. I, p. 322](#TODO;../../../../../reference/archive/smith-adam/works/wealth-of-nations/book02/ch05.htm).) @@ -146,7 +146,7 @@ This is the situation most dear to the heart of political economy. What about the employment of capital, then, in this condition of increased competition? -“As stock increases, the quantity of stock to be lent at interest grows gradually greater and greater. As the quantity of stock to be lent at interest increases, the interest ... diminishes (i) because the market price of things commonly diminishes as their quantity increases. ... and (ii) because with *the increase of capitals *in any country, “it becomes gradually more and more difficult to find within the country a profitable method of employing any new capital. There arises in consequence a competition between different capitals, the owner of one endeavouring to get possession of that employment which is occupied by another. But upon most occasions he can hope to jostle that other out of this employment by no other means but by dealing upon more reasonable terms. He must not only sell what he deals in somewhat cheaper, but in order to get it to sell, he must sometimes, too, buy it dearer. The demand for productive labour, by the increase of the funds which are destined for maintaining it, grows every day greater and greater. Labourers easily find employment, *|IX, 2|* but the owners of capitals find it difficult to get labourers to employ. Their competition raises the wages of labour and sinks the profits of stock.” (Adam Smith, [op. cit., Vol. I, p. 316](#TODO;../../../../../reference/archive/smith-adam/works/wealth-of-nations/book02/ch04.htm).) +“As stock increases, the quantity of stock to be lent at interest grows gradually greater and greater. As the quantity of stock to be lent at interest increases, the interest ... diminishes (i) because the market price of things commonly diminishes as their quantity increases. ... and (ii) because with *the increase of capitals* in any country, “it becomes gradually more and more difficult to find within the country a profitable method of employing any new capital. There arises in consequence a competition between different capitals, the owner of one endeavouring to get possession of that employment which is occupied by another. But upon most occasions he can hope to jostle that other out of this employment by no other means but by dealing upon more reasonable terms. He must not only sell what he deals in somewhat cheaper, but in order to get it to sell, he must sometimes, too, buy it dearer. The demand for productive labour, by the increase of the funds which are destined for maintaining it, grows every day greater and greater. Labourers easily find employment, *|IX, 2|* but the owners of capitals find it difficult to get labourers to employ. Their competition raises the wages of labour and sinks the profits of stock.” (Adam Smith, [op. cit., Vol. I, p. 316](#TODO;../../../../../reference/archive/smith-adam/works/wealth-of-nations/book02/ch04.htm).) Thus the small capitalist has the choice: (1) either to consume his capital, since he can no longer live on the interest – and thus cease to be a capitalist; or (2) to set up a business himself, sell his commodity cheaper, buy dearer than the wealthier capitalist, and pay higher wages – thus ruining himself, the market price being already very low as a result of the intense competition presupposed. If, however, the big capitalist wants to squeeze out the smaller capitalist, he has all the advantages over him which the capitalist has as a capitalist over the worker. The larger size of his capital compensates him for the smaller profits, and he can even bear temporary losses until the smaller capitalist is ruined and he finds himself freed from this competition. In this way, he accumulates the small capitalist's profits. @@ -216,19 +216,19 @@ It is generally true that the accumulation of large capital is also *accompanied “The inhabitants of many different parts of Great Britain have not capital sufficient to improve and cultivate all their lands. The wool of the southern counties of Scotland is, a great part of it, after a long land carriage through very bad roads, manufactured in Yorkshire, for want of capital to manufacture it at home. There are many little manufacturing towns in Great Britain, of which the inhabitants have not capital sufficient to transport the produce of their own industry to those distant markets where there is demand and consumption for it. If there are any merchants among them, *||XIV, 2|* they are properly only the agents of wealthier merchants who reside in some of the greater commercial cities.” (Adam Smith, [Wealth of Nations, Vol. I, pp. 326-27](#TODO;../../../../../reference/archive/smith-adam/works/wealth-of-nations/book02/ch05.htm).) -“The annual produce of the land and labour of any nation can be increased in its value by no other means but by increasing either *the number of its productive labourers*, or the *productive power of those labourers *who had before been employed.... In either case an additional capital is almost always required.” (Adam Smith, [op. cit., Vol. I, pp. 306-07](#TODO;../../../../../reference/archive/smith-adam/works/wealth-of-nations/book02/ch03.htm).) +“The annual produce of the land and labour of any nation can be increased in its value by no other means but by increasing either *the number of its productive labourers*, or the *productive power of those labourers* who had before been employed.... In either case an additional capital is almost always required.” (Adam Smith, [op. cit., Vol. I, pp. 306-07](#TODO;../../../../../reference/archive/smith-adam/works/wealth-of-nations/book02/ch03.htm).) “As the *accumulation* of stock must, in the nature of things, be previous to the division of labour, so labour can be more and more subdivided in proportion only as stock is previously more and more accumulated. The quantity of materials which the same number of people can work up, increases in a great proportion as labour comes to be more and more subdivided; and as the operations of each workman are gradually reduced to a greater degree of simplicity, a variety of new machines come to be invented for facilitating and abridging those operations. As the division of labour advances, therefore, in order to give constant employment to an equal number of workmen, an equal stock of provisions, and a greater stock of materials and tools than what would have been necessary in a ruder state of things, must be accumulated beforehand. But the number of workmen in every branch of business generally increases with the division of labour in that branch, or rather it is the increase of their number which enables them to class and subdivide themselves in this manner.” (Adam Smith, [op. cit., Vol. I, pp. 241-42](#TODO;../../../../../reference/archive/smith-adam/works/wealth-of-nations/book02/intro.htm).) -“As the accumulation of stock is previously necessary for carrying on this great improvement in the productive powers of labour, so that accumulation naturally leads to this improvement. The person who employs his stock in maintaining labour, necessarily wishes to employ it in such a manner as to produce as great a quantity of work as possible. He endeavours, therefore, both to make among his workmen the most proper distribution of employment, and to furnish them with the best machines which he can either invent or afford to purchase [...]. His abilities in both these respects *|XV, 2|* are generally in proportion to the extent of his stock, or to the number of people whom it can employ. The quantity of industry, therefore, not only increases in every country with the increase *of the stock *which employs it, but, in consequence of that increase, the same quantity of industry produces a much greater quantity of work.” (Adam Smith, [op. cit., Vol. I, p. 242](#TODO;../../../../../reference/archive/smith-adam/works/wealth-of-nations/book02/intro.htm).) +“As the accumulation of stock is previously necessary for carrying on this great improvement in the productive powers of labour, so that accumulation naturally leads to this improvement. The person who employs his stock in maintaining labour, necessarily wishes to employ it in such a manner as to produce as great a quantity of work as possible. He endeavours, therefore, both to make among his workmen the most proper distribution of employment, and to furnish them with the best machines which he can either invent or afford to purchase [...]. His abilities in both these respects *|XV, 2|* are generally in proportion to the extent of his stock, or to the number of people whom it can employ. The quantity of industry, therefore, not only increases in every country with the increase *of the stock* which employs it, but, in consequence of that increase, the same quantity of industry produces a much greater quantity of work.” (Adam Smith, [op. cit., Vol. I, p. 242](#TODO;../../../../../reference/archive/smith-adam/works/wealth-of-nations/book02/intro.htm).) Hence *over-production*. -“More comprehensive combinations of productive forces ... in industry and trade by uniting more numerous and more diverse human and natural powers in larger-scale enterprises. Already here and there, closer association of the chief branches of production. Thus, big manufacturers will try to acquire also large estates in order to become independent of others for at least a part of the raw materials required for their industry; or they will go into trade in conjunction with their industrial enterprises, not only to sell their own manufactures, but also to purchase other kinds of products and to sell these to their workers. In England, where a single factory owner sometimes employs ten to twelve thousand workers ... it is already not uncommon to find such combinations of various branches of production controlled by one brain, such smaller states or provinces within the state. Thus, the mine owners in the Birmingham area have recently taken over the *whole* process of iron production, which was previously distributed among various entrepreneurs and owners, (See “*Der bergmännische Distrikt bei Birmingham*,” *Deutsche Vierteljahr-Schrift *No. 3, 1838.) Finally in the large joint-stock enterprises which have become so numerous, we see far-reaching combinations of the financial resources of many participants with the scientific and technical knowledge and skills of others to whom the carrying-out of the work is handed over. The capitalists are thereby enabled to apply their savings in more diverse ways and perhaps even to employ them simultaneously in agriculture, industry and commerce. As a consequence their interest becomes more comprehensive, *||XVI, 2|* and the contradictions between agricultural, industrial, and commercial interests are reduced and disappear. But this increased possibility of applying capital profitably in the most diverse ways cannot but intensify the antagonism between the propertied and the non-propertied classes.” (Schulz, *op. cit.*, pp. 40-4l.) +“More comprehensive combinations of productive forces ... in industry and trade by uniting more numerous and more diverse human and natural powers in larger-scale enterprises. Already here and there, closer association of the chief branches of production. Thus, big manufacturers will try to acquire also large estates in order to become independent of others for at least a part of the raw materials required for their industry; or they will go into trade in conjunction with their industrial enterprises, not only to sell their own manufactures, but also to purchase other kinds of products and to sell these to their workers. In England, where a single factory owner sometimes employs ten to twelve thousand workers ... it is already not uncommon to find such combinations of various branches of production controlled by one brain, such smaller states or provinces within the state. Thus, the mine owners in the Birmingham area have recently taken over the *whole* process of iron production, which was previously distributed among various entrepreneurs and owners, (See “*Der bergmännische Distrikt bei Birmingham*,” *Deutsche Vierteljahr-Schrift* No. 3, 1838.) Finally in the large joint-stock enterprises which have become so numerous, we see far-reaching combinations of the financial resources of many participants with the scientific and technical knowledge and skills of others to whom the carrying-out of the work is handed over. The capitalists are thereby enabled to apply their savings in more diverse ways and perhaps even to employ them simultaneously in agriculture, industry and commerce. As a consequence their interest becomes more comprehensive, *||XVI, 2|* and the contradictions between agricultural, industrial, and commercial interests are reduced and disappear. But this increased possibility of applying capital profitably in the most diverse ways cannot but intensify the antagonism between the propertied and the non-propertied classes.” (Schulz, *op. cit.*, pp. 40-4l.) The enormous profit which the landlords of houses make out of poverty. House rent stands in inverse proportion to industrial poverty. -- cgit v1.2.3