第9章

Fortheentirelengthoftheworkingperiod，thepartofthevaluedailytransferredtotheproductbythefixedcapitalaccumulatesinlayers，asitwere，untiltheproductisfinished。Andherethedifferencebetweenfixedandcirculatingcapitalisrevealedatthesametimeinitspracticalsignificance。Fixedcapitalisadvancedintheprocessofproductionforacomparativelylongperiod；itneednotbereneweduntilaftertheexpirationofperhapsaperiodofseveralyears。Whetherasteam-enginetransfersitsvaluedailypiecemealtosomeyarn，theproductofadiscretelabour-process，orforthreemonthstoalocomotive，theproductofacontinuousactofproduction，isimmaterialasfaraslayingoutthecapitalrequiredforthepurchaseofthesteam-engineisconcerned。Intheonecaseitsvalueflowsbackinsmalldoses，forinstanceweekly，intheothercaseinlargerquantities，forinstancequarterly。Butineithercasetherenewalofthesteam-enginemaytakeplaceonlyaftertwentyyears。Solongaseveryindividualperiodwithinwhichthevalueofthesteam-engineisreturnedpiecemealbythesaleoftheproductisshorterthanthelifetimeoftheengineitself，thelattercontinuestofunctionintheprocessofproductionforseveralworkingperiods。

Itisdifferentwiththecirculatingcomponentsoftheadvancedcapital。Thelabour-powerboughtforadefiniteweekisexpendedinthecourseofthesameweekandismaterialisedintheproduct。Itmustbepaidforattheendoftheweek。Andthisinvestmentofcapitalinlabour-powerisrepeatedeveryweekduringthethreemonths；yettheexpenditureofthispartofthecapitalduringtheweekdoesnotenablethecapitalisttosettleforthepurchaseofthelabourthefollowingweek。Everyweekadditionalcapitalmustbeexpendedtopayforlabour-power，and，leavingasidethequestionofcredit，thecapitalistmustbeabletolayoutwagesforthreemonths，evenifhepaysthemonlyinweeklydoses。Itisthesamewiththeotherportionofcirculatingcapital，therawandauxiliarymaterials。Onelayeroflabourafteranotherispiledupontheproduct。

Itisnotalonethevalueoftheexpendedlabour-powerthatiscontinuallybeingtransferredtotheproductduringthelabour-process，butalsosurplus-value。

Thisproduct，however，isunfinished，ithasnotyettheformofafinishedcommodity，henceitcannotyetcirculate。Thisapplieslikewisetothecapital-valuetransferredinlayersfromtherawandauxiliarymaterialstotheproduct。

Dependingonthelengthoftheworkingperiodexactedbythespecificnatureoftheproductorbytheusefuleffecttobeachievedinitsmanufacture，acontinuousadditionalinvestmentofcirculatingcapital(wagesandrawandauxiliarymaterials)isrequired，nopartofwhichisinaformcapableofcirculationandhenceofpromotingarenewalofthesameoperation。

Everypartisonthecontraryheldfastsuccessivelyinthesphereofproductionasacomponentofthenascentproduct，tiedupintheformofproductivecapital。Now，thetimeofturnoverisequaltothesumofthetimeofproductionandthetimeofcirculationofthecapital。Henceaprolongationofthetimeofproductionreducesthevelocityoftheturnoverquiteasmuchasaprolongationofthetimeofcirculation。Inthepresentcasehoweverthefollowingtwopointsmustbenoted:

Firstly:Theprolongedstayinthesphereofproduction。Thecapitaladvancedforinstanceforlabour，rawmaterial，etc。，duringthefirstweek，aswellastheportionsofvaluetransferredtotheproductbythefixedcapital，areheldfastinthesphereofproductionfortheentiretermofthreemonths，and，beingincorporatedinanonlynascent，stillunfinishedproduct，cannotpassintocirculationascommodities。

Secondly:Sincetheworkingperiodrequiredfortheperformanceoftheproductiveactlaststhreemonths，andformsinfactonlyoneconnectedlabour-process，anewdoseofcirculatingcapitalmustbecontinuallyaddedweekafterweektotheprecedingamount。Thetotalofthesuccessivelyadvancedadditionalcapitalgrowsthereforewiththelengthoftheworkingperiod。

Wehaveassumedthatcapitalsofequalsizeareinvestedinspinningandmachine-building，thatthesecapitalscontainequalproportionsofconstantandvariable，fixedandcirculatingcapital，thattheworking-daysareofequallength，inbrief，thatallconditionsareequalexceptthedurationoftheworkingperiod。Inthefirstweek，theoutlayforbothisthesame，buttheproductofthespinnercanbesoldandtheproceedsofthesaleusedtobuynewlabour-power，newrawmaterials，etc。；inshort，productioncanberesumedonthesamescale。Themachine-manufacturerontheotherhandcannotreconvertthecirculatingcapitalexpendedinthefirstweekintomoneyandresumeoperationswithituntilthreemonthslater，whenhisproductisfinished。Thereisthereforefirstadifferenceinthereturnoftheidenticalquantitiesofcapitalinvested。Butinthesecondplaceidenticalamountsofproductivecapitalareemployedduringthethreemonthsinbothspinningandmachine-building。Howeverthemagnitudeoftheoutlayofcapitalinthecaseoftheyarnmanufacturerisquitedifferentfromthatofthemachine-builder；forintheonecasethesamecapitalisrapidlyrenewedandthesameoperationcanthereforeberepeated，whileintheothercasetherenewalofthecapitalisrelativelyslow，sothatevernewquantitiesofcapitalmustbeaddedtotheolduptothetimeofitsrenewal。Consequentlythereisadifferencenotonlyinthelengthoftimeofrenewalofdefiniteportionsofcapital，orinthelengthoftimeforwhichthecapitalisadvanced，butalsointhequantityofthecapitaltobeadvancedaccordingtothedurationofthelabour-process(althoughthecapitalsemployeddailyorweeklyareequal)。Thiscircumstanceisworthyofnoteforthereasonthatthetermoftheadvancemaybeprolonged，asweshallseeinthecasestreatedinthenextchapter，withouttherebynecessitatingacorrespondingincreaseintheamountofthecapitaltobeadvanced。Thecapitalmustbeadvancedforalongertime，andalargeramountofcapitalistiedupintheformofproductivecapital。

Atthelessdevelopedstagesofcapitalistproduction，undertakingsrequiringalongworkingperiod，andhencealargeinvestmentofcapitalforalongtime，suchasthebuildingofroads，canals，etc。，especiallywhentheycanbecarriedoutonlyonalargescale，areeithernotcarriedoutonacapitalistbasisatall，butratheratcommunalorstateexpense(inearliertimesgenerallybyforcedlabour，sofarasthelabour-powerwasconcerned)。Orobjectswhoseproductionrequiresalengthyworkingperiodarefabricatedonlyforthesmallestpartbyrecoursetotheprivatemeansofthecapitalisthimself。Forinstance，inthebuildingofahouse，theprivatepersonforwhomitisbuiltmakesanumberofpartialadvancepaymentstothebuildingcontractor。Hethereforeactuallypaysforthehousepiecemeal，inproportionastheproductiveprocessprogresses。Butintheadvancedcapitalistera，whenontheonehandhugecapitalsareconcentratedinthehandsofsingleindividuals，whileontheothertheassociatedcapitalist(joint-stockcompanies)appearssidebysidewiththeindividualcapitalistandacreditsystemhassimultaneouslybeendeveloped，acapitalistbuildingcontractorbuildsonlyinexceptionalcasesontheorderofprivateindividuals。Hisbusinessnowadaysistobuildwholerowsofhousesandentiresectionsofcitiesforthemarket，justasitisthebusinessofindividualcapitaliststobuildrailwaysascontractors。

TowhatextentcapitalistproductionhasrevolutionisedthebuildingofhousesinLondonisshownbythetestimonyofabuilderbeforethebankingcommitteeof1857。Whenhewasyoung，hesaid，housesweregenerallybuilttoorderandthepaymentsmadeininstalmentstothecontractorascertainstagesofthebuildingwerebeingcompleted。Verylittlewasbuiltonspeculation。

Contractorsusedtoassenttosuchoperationsmainlytokeeptheirmeninconstantemploymentandthusholdthemtogether。Inthelastfortyyearsallthathaschanged。Verylittleisnowbuilttoorder。Anyonewantinganewhousepicksonefromamongthosebuiltonspeculationorstillinprocessofconstruction。Thebuildernolongerworksforhiscustomersbutforthemarket。Likeeveryotherindustrialcapitalistheiscompelledtohavefinishedarticlesinthemarket。Whileformerlyabuilderhadperhapsthreeorfourhousesbuildingatatimeforspeculation，hemustnowbuyalargeplotofground(whichincontinentallanguagemeansrentitforninety-nineyears，asarule)，buildfrom100to200housesonit，andthusembarkonanenterprisewhichexceedshisresourcestwentytofiftytimes。Thefundsareprocuredthroughmortgagingandthemoneyisplacedatthedisposalofthecontractorasthebuildingsproceed。Then，ifacrisiscomesalongandinterruptsthepaymentoftheadvanceinstalments，theentireenterprisegenerallycollapses。Atbest，thehousesremainunfinisheduntilbettertimesarrive；attheworsttheyaresoldatauctionforhalftheircost。Withoutspeculativebuilding，andonalargescaleatthat，nocontractorcangetalongtoday。Theprofitfromjustbuildingisextremelysmall。Hismainprofitcomesfromraisingtheground-rent，fromcarefulselectionandskilledutilisationofthebuildingterrain。ItisbythismethodofspeculationanticipatingthedemandforhousesthatalmostthewholeBelgraviaandTyburnia，andthecountlessthousandsofvillasroundLondonhavebeenbuilt。(AbbreviatedfromtheReportoftheSelectCommitteeonBankActs，PartI，1857，Evidence，Questions5413-18；5435-36。)

Theexecutionofenterprisesrequiringworkingperiodsofconsiderablelengthandoperationsonalargescaledoesnotfallfullywithintheprovinceofcapitalistproductionuntiltheconcentrationofcapitalbecomesverypronounced，andthedevelopmentofthecreditsystemofferstothecapitalist，ontheotherhand，theconvenientexpedientofadvancingandthusriskingotherpeople’scapitalinsteadofhisown。Itgoeswithoutsayingthatwhetherthecapitaladvancedinproductionbelongstohimwhousesitordoesnothasnoeffectonthevelocityortimeofturnover。

Conditionssuchascooperation，divisionoflabour，applicationofmachinery，whichaugmenttheproductoftheindividualworking-day，shortenatthesametimetheworkingperiodofconnectedactsofproduction。

Thusmachineryshortensthebuildingtimeofhouses，bridges，etc。；mowersandthreshersreducetheworkingperiodrequiredtotransformripegrainintothefinishedproduct。Greaterspeedduetoimprovedshipbuildingcutstheturnovertimeofcapitalinvestedinshipping。Butimprovementsthatshortentheworkingperiodandtherebythetimeduringwhichcirculatingcapitalmustbeadvancedgenerallygohandinhandwithanincreasedoutlayoffixedcapital。

Ontheotherhandtheworkingperiodincertainbranchesofproductionmaybediminishedbythemereextensionofcooperation。Thecompletionofarailwayisexpeditedbysettingafoothugearmiesoflabourerandthustacklingthejobinmanyspotsatonce。Thetimeofturnoverislessenedinthatcasebyanincreaseoftheadvancedcapital。Moremeansofproductionandmorelabour-powermustbeunitedunderthecommandofthecapitalist。

Whereastheshorteningoftheworkingperiodisthusmostlyconnectedwithanincreaseofthecapitaladvancedforthisabbreviatedtime——theshorterthetermofadvancethegreaterthecapitaladvanced——itmusthereberecalledthatregardlessoftheexistingamountofsocialcapital，theessentialpointisthedegreeinwhichthemeansofproductionandsubsistence，orthedisposalofthem，arescatteredorconcentratedinthehandsofindividualcapitalists，inotherwords，thedegreeofconcentrationofcapitalsalreadyattained。Inasmuchascreditpromotes，acceleratesandenhancestheconcentrationofcapitalinonehand，itcontributestotheshorteningoftheworkingperiodandthusoftheturnovertime。

Inbranchesofproductioninwhichtheworkingperiod，whethercontinuousordiscontinuous，isprescribedbydefinitenaturalconditions，noshorteningbytheabove-mentionedmeanscantakeplace。SaysW。WalterGood，inhisPolitical，Agricultural，andCommercialFallacies(London，1866，p。325):”Inregardtoquickerreturns，thistermcannotbemadetoapplytocorncrops，asonereturnonlycanbemadeperannum。Inrespecttostock，wewillsimplyask，howisthereturnoftwo-andthree-year-oldsheep，andfour-andfive-year-oldoxentobequickened。”

Thenecessityofsecuringreadymoneyassoonaspossible(forinstancetomeetfixedobligations，suchastaxes，ground-rent，etc。)solvesthisproblem，e。g。，bysellingorslaughteringcattlebeforetheyhavereachedtheeconomicallynormalage，tothegreatdetrimentofagriculture。

Thisalsobringsaboutintheendariseinthepriceofmeat。”MenwhohavemainlyrearedcattleforsupplyingthepasturesoftheMidlandcountiesinsummer，andtheyardsoftheeasterncountiesinwinter……havebecomesocrippledthroughtheuncertaintyandlownessinthepricesofcornthattheyaregladtotakeadvantageofthehighpricesofbutterandcheese；

theformertheytaketomarketweeklytohelptopaycurrentexpenses，anddrawontheotherfromsomefactor，whotakesthecheesewhenfittomove，and，ofcourse，nearlyathisownprice。Forthisreason，rememberingthatfarmingisgovernedbytheprinciplesofPoliticalEconomy，thecalveswhichusedtocomesouthfromthedairyingcountiesforrearing，arenowlargelysacrificedattimesataweekandtendaysold，intheshamblesofBirmingham，Manchester，Liverpool，andotherlargeneighbouringtowns。

If，however，malthadbeenfreefromduty，notonlywouldfarmershavemademoreprofitandthereforebeenabletokeeptheirstocktillitgotolderandheavier，butitwouldhavebeensubstitutedformilkforrearingbymenwhodidnotkeepcows，andthusthepresentalarmingscarcityofyoungcattlewhichhasbefallenthenationwouldhavebeenlargelyaverted。

Whattheselittlemennowsay，inreplytorecommendationstorear，is，慦eknowverywellitwouldpaytorearonmilk，butitwouldfirstrequireustoputourhandsinourpurse，whichwecannotdo，andthenweshouldhavetowaitalongtimeforareturn，insteadofgettingitatoncebydairying。’”(Ibid。，pp。11and12。)

IftheprolongationoftheturnoverhassuchconsequencesforthesmallEnglishfarmers，itiseasytoseewhatdisarrangementitmustproduceamongthesmallpeasantsofthecontinent。

Thepartofthevaluetransferredinlayersbythefixedcapitaltotheproductaccumulates，andthereturnofthispartisdelayed，inproportiontothelengthoftheworkingperiodandthusalsooftheperiodoftimerequiredforthecompletionofthecommoditycapableofcirculation。

Butthisdelaydoesnotcausearenewedoutlayoffixedcapital。Themachinecontinuestofunctionintheprocessofproduction，whetherthereplacementofitswearandtearintheformofmoneyreturnsslowlyorrapidly。Itisdifferentwiththecirculatingcapital。Notonlymustcapitalbetiedupforaratherlongtime，inproportiontothelengthoftheworkingperiod，butnewcapitalmustbecontinuallyadvancedintheshapeofwages，andrawandauxiliarymaterials。Adelayedreturnhasthereforeadifferenteffectoneach。Nomatterwhetherthereturnisrapidorslow，thefixedcapitalcontinuestofunction。Butthecirculatingcapitalbecomesunabletoperformitsfunctions，ifthereturnisdelayed，ifitistiedupintheformofunsold，orunfinishedandasyetunsaleableproducts，andifnoadditionalcapitalisathandforitsrenewalinkind。”Whilethepeasantfarmerstarves，hiscattlethrive。Repeatedshowershadfalleninthecountry，andtheforagewasabundant。TheHindoopeasantwillperishbyhungerbesideafatbullock。Theprescriptionsofsuperstition，whichappearcrueltotheindividual，areconservativeforthecommunity；andthepreservationofthelabouringcattlesecuresthepowerofcultivation，andthesourcesoffuturelifeandwealth。Itmaysoundharshandsadtosayso，butinIndiaitismoreeasytoreplaceamanthananox。”(Return，EastIndia，MadrasandOrissaFamine。No。4，p。44。)ComparewiththeprecedingtheutteranceofManavaDharmaSastra，[ManavaDharmaSastraorManulaws——anancientIndianreligious，legalandritualcodewhichdeterminedthedutiesofeveryHinduinkeepingwiththetenetsofBrahmanism。ThecompilationoftheselawsistraditionallyattributedtoManu，themythicalprogenitorofman。MarxquotesfromManavaDharmaSastra，ortheInstitutesofManuAccordingtotheGlossofKulluka，ComprisingtheIndianSystemofDuties，ReligiousandCivil，thirdedition，Madras，1863，p。281——Ed。]ChapterX，§；62。”Desertionoflife，withoutreward，forthesakeofpreservingapriestoracow……maycausethebeatitudeofthosebase-borntribes。”

Naturally，itisimpossibletodeliverafive-year-oldanimalbeforethelapseoffiveyears。Butwhatispossible，withincertainlimits，isgettinganimalsreadyfortheirdestinationinlesstimebychangingthewayoftreatingthem。ThisispreciselywhatBakewellaccomplished。

FormerlyEnglishsheep，liketheFrenchaslateas1855，werenotfitforthebutcheruntilfourorfiveyearsold。AccordingtotheBakewellsystem，sheepmaybefattenedwhenonlyoneyearoldandineverycasehavereachedtheirfullgrowthbeforetheendofthesecondyear。Bycarefulselection，Bakewell，aDishleyGrangefarmer，reducedtheskeletonofsheeptotheminimumrequiredfortheirexistence。HissheeparecalledtheNewLeicesters。”……thebreedercannowsentthreetomarketinthesamespaceoftimethatitformerlytookhimtoprepareone；andiftheyarenottaller，theyarebroader，rounder，andhaveagreaterdevelopmentinthosepartswhichgivemostflesh。Ofbone，theyhaveabsolutelynogreateramountthanisnecessarytosupportthem，andalmostalltheirweightispuremeat。”(Lavergne，TheRuralEconomyofEngland，etc。，1855，p。20。)

Themethodswhichshortentheworkingperiodsareapplicableinvariousbranchesofindustrytoawidelyvaryingextentanddonoteliminatethetimedifferencesofthevariousworkingperiods。Tosticktoourillustration，theworkingperiodrequiredforthebuildingofalocomotivemaybeabsolutelyshortenedbytheemploymentofnewmachine-tools。Butifatthesametimethefinishedproductturnedoutdailyorweeklybyacotton-spinningmillisstillmorerapidlyincreasedbyimprovedprocesses，thentheworkingperiodinmachine-building，comparedwiththatinspinning，hasneverthelessgrownrelativelyinlength。

1885:CapitalII——Chapter13

partII

THETURNOVEROFCAPITAL

CHAPTERXIII

THETIMEOFPRODUCTIONWorkingtimeisalwaysproductiontime，thatistosay，timeduringwhichcapitalisheldfastinthesphereofproduction。Butviceversa，notalltimeduringwhichcapitalisengagedintheprocessofproductionisnecessarilyworkingtime。

Itisherenotaquestionofinterruptionsofthelabour-processnecessitatedbynaturallimitationsofthelabour-poweritself，althoughwehaveseentowhatextentthemerecircumstancethatfixedcapital——

factorybuildings，machinery，etc——liesidleduringpausesinthelabour-process，[See:KarlMarx，Capital，Vol。I，pp。256-63——Ed。]becameoneofthemotivesforanunnaturalprolongationofthelabour-processandforday-and-nightwork。Wearedealinghereratherwithinterruptionsindependentofthelengthofthelabour-process，broughtaboutbytheverynatureoftheproductanditsfabrication，duringwhichthesubjectoflabourisforalongerorshortertimesubjectedtonaturalprocesses，mustundergophysical，chemicalandphysiologicalchanges，duringwhichthelabour-processisentirelyorpartiallysuspended。

Forinstancegrapeafterbeingpressedmustfermentawhileandthenrestforsometimeinordertoreachacertaindegreeofperfection。

Inmanybranchesofindustrytheproductmustpassthroughadryingprocess，forinstanceinpottery，orbeexposedtocertainconditionsinordertochangeitschemicalproperties，asforinstanceinbleaching。Wintergrainneedsaboutninemonthstomature。Betweenthetimeofsowingandharvestingthelabour-processisalmostentirelysuspended。Intimber-raising，afterthesowingandtheincidentalpreliminaryworkarecompleted，theseedrequiresabout100yearstobetransformedintoafinishedproductandduringallthattimeitstandsincomparativelyverylittleneedoftheactionoflabour。

Inallthesecasesadditionallabourisdrawnononlyoccasionallyduringalargeportionofthetimeofproduction。Theconditiondescribedinthepreviouschapter，whereadditionalcapitalandlabourmustbesuppliedtothecapitalalreadytiedupintheprocessofproduction，obtainshereonlywithlongerorshorterintervals。

Inallthesecasesthereforetheproductiontimeoftheadvancedcapitalconsistsoftwoperiods:oneperiodduringwhichthecapitalisengagedinthelabour-processandasecondperiodduringwhichitsformofexistence——thatofanunfinishedproduct——isabandonedtotheswayofnaturalprocesses，withoutbeingatthattimeinthelabour-process。

Nordoesitmatterintheleasthereandthere。Theworkingperiodandtheproductionperioddonotcoincideinthesecases。Theproductionperiodislongerthantheworkingperiod。Buttheproductisnotfinished，notready，hencenotfittobeconvertedfromtheformofproductiveintothatofcommodity-capitaluntiltheproductionperiodiscompleted。Consequentlythelengthoftheturnoverperiodincreasesinproportiontothelengthoftheproductiontimethatdoesnotconsistofworkingtime。Insofarastheproductiontimeinexcessoftheworkingtimeisnotfixedbynaturallawsgivenonceandforall，suchasgovernthematuringofgrain，thegrowthofanoak，etc。，theperiodofturnovercanoftenbemoreorlessshortenedbyanartificialreductionoftheproductiontime。Suchinstancesaretheintroductionofchemicalbleachinginsteadofbleachingonthegreenandmoreefficientdryingapparatus。Or，intanning，wherethepenetrationofthetannicacidintotheskins，bytheoldmethod，tookfromsixtoeighteenmonths，whilethenewmethod，bymeansofanair-pump，doesitinonlyoneandahalftotwomonths。(J。G。Courcelle-Seneuil，Traitè；

thè；oriqueetpratiquedesentreprisesindustrielles，etc。，Paris，1857，2-meè；d。)Themostmagnificentillustrationofanartificialabbreviationofthetimeofproductiontakenupexclusivelywithnaturalprocessesisfurnishedbythehistoryofironmanufacture，moreespeciallytheconversionofpigironintosteelduringthelast100years，fromthepuddlingprocessdiscoveredabout1780tothemodernBessemerprocessandthelatestmethodsintroducedsince。Thetimeofproductionhasbeenbroughtdowntremendously，buttheinvestmentoffixedcapitalhasincreasedinproportion。

ApeculiarillustrationofthedivergenceoftheproductiontimefromtheworkingtimeisfurnishedbytheAmericanmanufactureofshoe-lasts。

Inthiscaseaconsiderableportionoftheunproductivecostsarisesfromhavingtoholdthetimberatleasteighteenmonthsbeforeitisdryenoughtowork，soastopreventsubsequentwarping。Duringthistimethewooddoesnotpassthroughanyotherlabour-process。Theperiodofturnoveroftheinvestedcapitalisthereforenotdeterminedsolelybythetimerequiredforthemanufactureofthelastsbutalsobythetimeduringwhichitliesunproductiveintheshapeofdryingwood。Itstays18monthsintheprocessofproductionbeforeitcanenterintothelabour-processproper。

Thisexampleshowsatthesametimethatthetimesofturnoverofdifferentpartsoftheaggregatecirculatingcapitalmaydifferinconsequenceofconditionswhichdonotarisewithinthesphereofcirculationbutowetheirorigintotheproductionprocess。

Thedifferencebetweenproductiontimeandworkingtimebecomesespeciallyapparentinagriculture。Inourmoderateclimatesthelandbearsgrainonceayear。Shorteningorlengtheningtheperiodofproduction(forwintergrainitaveragesninemonths)itselfdependsonthealternationofgoodandbadseasons，andforthisreasoncannotbeaccuratelydeterminedandcontrolledbefore-handasinindustryproper。Onlysuchby-productsasmilk，cheese，etc。，cansteadilybeproducedandsoldincomparativelyshortperiods。Ontheotherhand，workingtimedataareasfollows:”Thenumberofworking-daysinthevariousregionsofGermany，withdueregardtotheclimaticandotherdeterminingconditions，willforthethreemainworkingperiodspresumablybe:Forthespringperiod，fromthemiddleofMarchorbeginningofApriltothemiddleofMay，about50to60working-days；

forthesummerperiod，fromthebeginningofJunetotheendofAugust，65to80；andfortheautumnperiod，fromthebeginningofSeptembertotheendofOctober，orthemiddleorendofNovember，55to75working-days。

Forthewinter，onlythejobsmarketgoods，buildingmaterials，etc。，aretobenoted。”(F。Kirchhof，HandbuchderlandwirtschaftlichenBetriebslehre，Dessau，1852，S。160。)

Themoreunfavourabletheclimate，themorecongestedistheworkingperiodinagriculture，andhencetheshorteristhetimeinwhichcapitalandlabourareexpended。TakeRussiaforinstance。Insomeofthenortherndistrictsofthatcountryfieldlabourispossibleonlyfrom130to150

daysthroughouttheyear，anditmaybeimaginedwhatalossRussiawouldsustainif50outofthe65millionsofherEuropeanpopulationremainedwithoutworkduringthesixoreightmonthsofthewinter，whenagriculturallabourisatastandstill。Apartfromthe200，000peasantswhoworkinthe10，500factoriesofRussia，localdomesticindustrieshaveeverywheredevelopedinthevillages。Therearevillagesinwhichallthepeasantshavebeenforgenerationsweavers，tanners，shoemakers，locksmiths，cutlers，etc。ThisisparticularlythecaseintheguberniasofMoscow，Vladimir，Kaluga，Kostroma，andPetersburg。Bytheway，thisdomesticindustryisbeingpressedmoreandmoreintotheserviceofcapitalistproduction。

Theweaversforinstancearesuppliedwithwarpandwoofdirectlybymerchantsorthroughmiddlemen。(AbbreviatedfromtheReportsbyH。M。SecretariesofEmbassyandLegation，ontheManufactures，Commerce，etc。，No。8，1865，pp。86and87。)Weseeherethatthedivergenceoftheproductionperiodfromtheworkingperiod，thelatterbeingbutapartoftheformer，constitutesthenaturalbasisforthecombinationofagriculturewithsubsidiaryruralindustries，andthatthesesubsidiaryindustriesinturnofferpointsofvantagetothecapitalist，whointrudesfirstinthepersonofthemerchant。

Whencapitalistproductionlateraccomplishestheseparationofmanufactureandagriculture，therurallabourerbecomesevermoredependentonmerelycasualaccessoryemploymentandhisconditiondeterioratesthereby。Forcapital，aswillbeseenlater，alldifferencesintheturnoverareevenedout。Notsoforthelabourer。

Inmostbranchesofindustryproper，ofmining，transportation，etc。，operationsproceedevenly，theworkingtimebeingthesameyearinyearoutandtheoutlayofcapitalpassingdailyintothecirculationprocessbeinguniformlydistributed，apartfromsuchabnormalinterruptionsasfluctuationsofprices，businessdislocations，etc。Likewisethereturnofthecirculatingcapitaloritsrenewalisevenlydistributedthroughouttheyear，marketconditionsotherwiseremainingthesame。Yetthereisinthecourseofthevariousperiodsoftheyearthegreatestinequalityintheoutlayofcirculatingcapitalinsuchcapitalinvestmentsinwhichtheworkingtimeconstitutesonlyapartoftheproductiontime，whilethereturntakesplaceonlyinbulkatatimefixedbynaturalconditions。

Ifthescaleofbusinessisthesame，i。e。，iftheamountofadvancedcirculatingcapitalisthesame，itmustbeadvancedinlargerquantitiesatatimeandforlongerperiodsthaninenterpriseswithcontinuousworkingperiods。

Thereisalsoaconsiderablygreaterdifferenceherebetweenthelifeofthefixedcapitalandthetimeinwhichitreallyfunctionsproductively。

Duetothedifferencebetweenworkingtimeandproductiontime，thetimeofemploymentoftheappliedfixedcapitalisofcourselikewisecontinuallyinterruptedforalongerorshortertime，forinstanceinagricultureinthecaseofworkingcattle，implementsandmachines。Insofarasthisfixedcapitalconsistsofdraughtanimals，itrequirescontinuallythesame，ornearlythesame，expenditureforfeed，etc。，asitdoesduringthetimetheywork。Inthecaseofdeadstocknon-usealsobringsonacertainamountofdepreciation。Hencetheproductisingeneralincreasinginprice，sincethetransferofvaluetoitisnotcalculatedaccordingtothetimeduringwhichthefixedcapitalfunctionsbutaccordingtothetimeduringwhichitdepreciatesinvalue。Inbranchesofproductionsuchasthese，theidlingofthefixedcapital，whethercombinedwithcurrentexpensesornot，formsasmuchaconditionofitsnormalemploymentasforinstancethelossofacertainquantityofcottoninspinning；andinthesamewaythelabour-powerexpendedunproductivelybutunavoidablyinanylabour-processundernormaltechnicalconditionscountsjustaswellasthatexpendedproductively。Everyimprovementwhichreducestheunproductiveexpenditureofinstrumentsoflabour，rawmaterial，andlabour-poweralsoreducesthevalueoftheproduct。

Inagriculturewehaveacombinationofboththelongerworkingperiodandthegreatdifferencebetweenworkingtimeandproductiontime。

Hodgskinrightlyremarks:”Thedifferenceoftime”(althoughhedoesnotdifferentiateherebetweenworkingtimeandproductiontime)”requiredtocompletetheproductsofagriculture，andofotherspeciesoflabour，”

is”themaincauseofthegreatdependenceoftheagriculturists。Theycannotbringtheircommoditiestomarketinlesstimethanayear。Forthatwholeperiodtheyareobligedtoborrowoftheshoemaker，thetailor，thesmith，thewheelwright，andthevariousotherlabourers，whoseproductstheycannotdispensewith，butwhicharecompletedinafewdaysorweeks。

Owingtothisnaturalcircumstance，andowingtothemorerapidincreaseofthewealthproducedbyotherlabourthanthatofagriculture，themonopolisersofalltheland，thoughtheyhavealsomonopolisedlegislation，havenotbeenabletosavethemselvesandtheirservants，，thefarmers，frombecomingthemostdependentclassofmeninthecommunity。”(ThomasHodgskin，PopularPoliticalEconomy，London，1827，p。147。note。)

Allmethodsbywhichinagricultureontheonehandtheexpendituresforwagesandinstrumentsoflabouraredistributedmoreevenlyovertheentireyear，whileontheothertheturnoverisshortenedbyraisingagreatervarietyofcrops，thusmakingdifferentharvestspossiblethroughouttheyear，requireanincreaseofthecirculatingcapitaladvancedinproduction，investedinwages，fertilisers，seed，etc。Thisisthecaseinthetransitionfromthethree-fieldsystemwithfallowlandtothesystemofcroprotationwithoutfallow。Itappliesfurthermoretotheculturesdè；-robè；esofFlanders。”Therootcropsareplantedinculturedè；robè；e；

thesamefieldyieldsinsuccessionfirstgrain，flax，colza，forthewantsofman，andaftertheyareharvestedrootcropsaresownforthemaintenanceofcattle。Thissystem，whichpermitsthekeepingofhornedcattleinthestables，yieldsaconsiderableamountofmanureandthusbecomesthepivotofcroprotation。”Morethanathirdofthecultivatedareainsandydistrictsistakenupwithculturesdè；robè；es；itisjustasifthecultivatedareahadbeenincreasedbyone-third。”Apartfromrootcrops，cloverandotherfodderplantsarelikewiseusedforthispurpose。”Agriculture，beingthuscarriedtoapointwhereitturnsintohorticulture，naturallyrequiresaconsiderableinvestmentofcapital。Thiscapital，estimatedinEnglandat250francsperhectare，mustbealmost500francsinFlanders，afigurewhichgoodfarmerswillundoubtedlyconsiderfartoolow，judgingbytheirownlands。”(EmiledeLaveleye，Essaissurl’è；conomieruraledelaBelgique，Paris，1863，pp。45，46and48。)

Takefinallytimber-growing。”Theproductionoftimberdiffersfrommostoftheotherbranchesofproductionessentiallyinthatheretheforcesofnatureactindependentlyanddonotrequirethepowerofmanorcapitalwhentheincreaseisnatural。Eveninplaceswhereforestsarepropagatedartificiallytheexpenditureofhumanandcapitalenergyisinconsiderablecomparedwiththeactionofthenaturalforces。Besides，aforestwillstillthriveinsoilsandonsiteswheregrainnolongergetsalongorwhereitscultivationnolongerpays。Furthermoreforestryengagedinasaregulareconomyrequiresalargerareathangrainculture，becausesmallplotsdonotpermitofproperforestrymethods，largelypreventtheenjoymentofthesecondaryusestowhichthelandcanbeput，makeforestprotectionmoredifficult，etc。Buttheproductiveprocessextendsoversuchlongperiodsthatitexceedstheplanningofanindividualfarmandincertaincasessurpassestheentirespanofahumanlife。Thecapitalinvestedinthepurchaseofforestland”(inthecaseofcommunalproductionthiscapitalbecomesunnecessary，thequestionthenbeingsimplywhatacreagethecommunitycansparefromitssowingandgrazingareaforforestry)”willnotyieldsubstantialreturnsuntilafteralongperiod，andeventhenisturnedoveronlypartially。Withforestsproducingcertainspeciesoftreesthecompleteturnovertakesasmuchas150years。Besides，aproperlymanagedtimber-growingestablishmentitselfdemandsasupplyofstandingtimberwhichamountstotentofortytimestheannualyield。Unlessamanhasthereforestillothersourcesofincomeandownsvasttractsofforestland，hecannotengageinregularforestry。”(Kirchhof，p。58。)

Thelongproductiontime(whichcomprisesarelativelysmallperiodofworkingtime)andthegreatlengthoftheperiodsofturnoverentailedmakeforestryanindustryoflittleattractiontoprivateandthereforecapitalistenterprise，thelatterbeingessentiallyprivateeveniftheassociatedcapitalisttakestheplaceoftheindividualcapitalist。Thedevelopmentofcultureandofindustryingeneralhasevinceditselfinsuchenergeticdestructionofforestthateverythingdonebyitconverselyfortheirpreservationandrestorationappearsinfinitesimal。

ThefollowingpassageintheabovequotationfromKirchhofinparticularlyworthyofnote:”Besides，aproperlymanagedtimber-growingestablishmentitselfdemandsasupplyofstandingtimberwhichamountstotentofortytimestheannualyield。”Inotherwords，aturnoveroccursonceintentofortyormoreyears。

Thesameappliestostockraising。Apartoftheherd(supplyofcattle)remainsintheprocessofproduction，whileanotherpartissoldannuallyasaproduct。Inthiscaseonlyapartofthecapitalisturnedovereveryyear，justasinthecaseoffixedcapital:machinery，workingcattle，etc。althoughthiscapitalisacapitalfixedintheprocessofproductionforalongtime，andthusprolongstheturnoverofthetotalcapital，itisnotafixedcapitalinthestrictdefinitionoftheterm。

Whatisherecalledasupply——acertainamountofstandingtimberorlivestock——existsrelativelyintheprocessofproduction(simultaneouslyasinstrumentsoflabourandmaterialoflabour)；inaccordancewiththenaturalconditionsofitsreproductionunderpropermanagement，aconsiderablepartofthissupplymustalwaysbeavailableinthisform。

Asimilarinfluenceontheturnoverisexertedbyanotherkindofsupply，whichisproductivecapitalonlypotentially，butwhichowingtothenatureofthiseconomy，mustbeaccumulatedinmoreorlessconsiderablequantitiesandhenceadvancedforpurposesofproductionforalongterm，althoughitentersintotheactualprocessofproductiononlygradually。

Inthisclassbelongsforinstancemanurebeforeitishauledtothefield，furthermoregrain，hay，etc。，andsuchsuppliesofmeansofsubsistenceasareemployedintheproductionofcattle。”Aconsiderablepartoftheworkingcapitaliscontainedinthefarm’ssupplies。Butthesemaylosemoreorlessoftheirvalue，iftheprecautionarymeasuresnecessaryfortheirpreservationingoodconditionarenotproperlyobserved。Lackofattentionmayevenresultinthetotallossofapartoftheproducesuppliesforthefarm。Forthisreason，acarefulinspectionofthebarns，feedandgrainlofts，andcellarsbecomesindispensable，thestoreroomsmustalwaysbewellclosed，keptclean，ventilated，etc。Thegrainandothercropsheldinstoragemustbethoroughlyturnedoverfromtimetotime，potatoesandbeetsmustbeprotectedagainstfrost，rainandrot。”(Kirchhof，p。292。)”Incalculatingone’sownrequirements，especiallyforthekeepingofcattle，thedistributionmustbemadeaccordingtotheproductobtainedanditsintendeduse。Onemustnotonlyconsidercoveringone’sordinaryneedsbutalsoseetoitthatthereisaproportionatereserveforextraordinarycases。Ifitisthenfoundthatthedemandcannotbefullymetbyone’sownproduction，itbecomesnecessarytoreflectfirstwhetherthedeficiencycannotbecoveredbyotherproducts(substitutes)，orbythecheaperprocurementofsuchinplaceofthedeficientones。Forinstanceifthereshouldhappentobeashortageofhay，thismightbemadegoodbyrootsandanadmixtureofstraw。Ingeneral，theintrinsicvalueandmarket-priceofthevariouscropsmustalwaysbekeptinmindinsuchcases，andconsumptionregulatedaccordingly。Ifforinstanceoatsarehigh，whilepeasandryearerelativelylow，itwillpaytosubstitutespeasorryeforapartoftheoatsintendedforhorsesandtoselltheoatsthussaved。”(Ibid。，p。300。)

Itwaspreviouslystate，whendiscussingtheformationofasupply，[Seepp。140-146ofthisbook——Ed。]thatadefinitequantity，bigorsmall，ofpotentialproductivecapitalisrequired，i。e。，ofmeansofproductionintendedforuseinproduction，whichmustbeavailableinbiggerorsmallerquantitiesforthepurposeofenteringbyandbyintotheproductiveprocess。

Theremarkwasincidentallymadethat，givenacertainbusinessorcapitalistenterpriseofdefiniteproportions，themagnitudeofthisproductivesupplydependsonthegreaterorlesserdifficultiesofitsrenewal，therelativenearnessofmarketsofsupply，thedevelopmentoftransportationandcommunicationfacilities，etc。Allthesecircumstancesaffecttheminimumofcapitalwhichmustbeavailableintheformofaproductivesupply，henceaffectthelengthoftimeforwhichthecapitalmustbeadvancedandtheamountofcapitaltobeadvancedatonetime。Thisamount，whichaffectsalsotheturnover，isdeterminedbythelongerorshortertimeduringwhichacirculatingcapitalistiedupintheformofaproductivesupplyasmerelypotentialproductivecapital。Ontheotherhand，inasmuchasthisstagnationdependsonthegreaterorsmallerpossibilityofrapidreplacement，onmarketconditions，etc。，itarisesitselfoutofthetimeofcirculation，outofcircumstancesthatbelonginthesphereofcirculation。”Further-more，allsuchimplementsandaccessoriesashandtools，sieves，baskets，ropes，wagongrease，nails，etc。，mustbethemoreavailableforimmediatereplacement，thelessthereisopportunityforpurchasingthemnearbywithoutdelay。

Finally，theentiresupplyofimplementsmustbecarefullyoverhauledeverywinter，andnewpurchasesorrepairsfoundnecessarymustbeprovidedforatonce。Whetherornotoneistokeepagreatorsmallsupplyofarticlesofequipmentistobesettledmainlybylocalconditions。Wherevertherearenoartisansorstoresinthevicinity，itisnecessarytokeeplargersuppliesthaninplaceswherethesearetobehadonthespotornearby。

Butifthenecessarysuppliesareprocuredinlargequantitiesatatime，thenothercircumstancesbeingequal，onegenerallygetsthebenefitofcheaperpurchases，providedanappropriatetimehasbeenchosentomakethem。True，therotatingworkingcapitalistherebyshornofacorrespondinglylargersum，allatonce，whichcannotalwaysbewellsparedinthebusiness。”

(Kirchhof，p。301。)

Thedifferencebetweenproductiontimeandworkingtimeadmitsofmanyvariations，aswehaveseen。Forthecirculatingcapitalitmaybeproductiontimebeforeitentersintothelabour-processproper(productionoflasts)；oritmaybeproductiontimeafterithaspassedthroughthelabour-processproper(wine，seedgrain)；ortheproductiontimeisoccasionallyinterruptedbyworkingtime(agriculture，timber-growing)。Alargeportionoftheproductfitforcirculationremainsincorporatedintheactiveprocessofproduction，whileamuchsmallerpartentersintoannualcirculation(timber-growingandcattleraising)；thelongerorshorterperiodoftimeforwhichacirculatingcapitalmustbeinvestedintheformofpotentialproductivecapital，hencealsothelargerorsmalleramountofthiscapitaltobeadvancedatonetime，dependspartlyonthekindofproductiveprocess(agriculture)，andpartlyontheproximityofmarkets，etc。，inshort，oncircumstancespertinenttothesphereofcirculation。

Weshallseelater(BookIII)，whatsenselesstheoriesMacCulloch，JamesMill，etc。，arrivedatasaresultoftheattempttoidentifytheproductiontimedivergingfromworkingtimewiththelatter，anattemptwhichinturnisduetoamisapplicationofthetheoryofvalue。

Theturnovercyclewhichweconsideredaboveisdeterminedbythedurabilityofthefixedcapitaladvancedfortheprocessofproduction。

Sincethiscycleextendsoveranumberofyearsitcomprisesaseriesofeitherannualturnoversoffixedcapitalorofturnoversrepeatedduringtheyear。

Inagriculturesuchacycleofturnoversarisesoutofthesystemofcroprotation。”Thedurationoftheleasemustinnocasebelessthanthetimeofcompletionoftheadoptedsystemofcroprotation。Henceonealwayscalculates3，6，9，etc。，inthethree-fieldsystem。Inthatsystemwithcleanfallow，afieldiscultivatedonlyfourtimesinsixyears，beingsowntowinterandsummergrainintheyearsofcultivation，and，ifthepropertiesofthesoilrequireorpermitit，towheatandrye，barleyandoatssuccessively。Everyspeciesofgraindiffersinitsyieldfromtheothersonthesamesoil，everyoneofthemhasadifferentvalueandissoldatadifferentprice。Forthisreasontheyieldofafieldisdifferenteveryyearitiscultivated，anddifferentinthefirsthalfoftherotation(thefirstthreeyears)fromthatofthesecond。Eventheaverageyieldofoneperiodofrotationisnotequaltothatofanother，forfertilitydoesnotdependsolelyonthegoodqualityofthesoil，butalsoontheweathereachyear，justaspricesdependonamultitudeofchangingconditions。

Ifonenowcalculatestheincomefromafieldbytakingintoaccounttheaveragefertilityandtheaveragepricesfortheentiresix-yearrotationperiod，onefindsthetotalincomeofoneyearineitherperiodoftherotation。Butthisisnotsoiftheproceedsarecalculatedonlyforhalfofthetimerotation，thatistosay，forthreeyears；forthenthetotalincomefigureswouldnotcoincide。Itfollowsfromtheforegoingthataleaseoflandworkedbythethree-fieldsystemshouldrunforatleastsixyears。Itishoweveralwaysstillmoredesirableforlessorandlesseethatthedurationoftheleaseshouldbemultipleofthedurationofthelease(sic！)；hencethatitshouldbe12，18，andevermoreyearsinsteadof6yearsinasystemofthreefieldsand14，28yearsinsteadof7inasystemofsevenfields。”(Kirchhof，pp。117，118。)

(Atthisplacethemanuscriptcontainsthenote:”TheEnglishsystemofcroprotation。Giveanotehere。”)

1885:CapitalII——Chapter14

partII

THETURNOVEROFCAPITAL

CHAPTERXIV

THETIMEOFCIRCULATIONAllcircumstancesconsideredsofarwhichdistinguishtheperiodsofturnoverofdifferentcapitalsinvestedindifferentbranchesofindustryandhencealsotheperiodsforwhichcapitalmustbeadvanced，originateintheprocessofproductionitself，suchasthedifferencebetweenfixedandcirculatingcapital，thedifferenceintheworkingperiods，etc。Butthetimeofturnoverofcapitalisequaltothesumofitproductiontimeplusitscirculation，orrotation，time。Itisthereforeamatterofcoursethatadifferenceinthetimeofcirculationcausesadifferenceinthetimeofturnoverandhenceinthelengthoftheperiodofturnover。Thisbecomesmoreevidenteitheroncomparingtwodifferentinvestmentsofcapitalinwhichallcircumstancesmodifyingtheturnoverareequalexceptthetimeofcirculation，oronselectingagivencapitalwithagivenproportionoffixedandcirculatingcapital，agivenworkingperiod，etc。，withonlythetimesofcirculationvarying，hypothetically。

Oneofthesectionsofthetimeofcirculation——relativelythemostdecisive——consistsofthetimeofselling，theperiodduringwhichcapitalexistsinthestateofcommodity-capital。Thetimeofcirculation，andhencetheperiodofturnoveringeneral，arelongorshortdependingontherelativelengthofthissellingtime。Anadditionaloutlayofcapitalmaybecomenecessaryasaresultofexpensesofstorage，etc。Itisclearattheverystartthatthetimerequiredforthesaleoffinishedgoodsmaydifferconsiderablyfortheindividualcapitalistsinoneandthesamebranchofindustry。Henceitmaydiffernotonlyfortheaggregatecapitalsinvestedinthevariousbranchesofindustry，butalsoforthevariousindependentcapitals，whichareinfactmerelypartsoftheaggregatecapitalinvestedinthesamesphereofproductionbutwhichhavemadethemselvesindependent。Othercircumstancesremainingequal，theperiodofsellingwillvaryforthesameindividualcapitalwiththegeneralfluctuationsofthemarketorwithitsfluctuationsinthatparticularlineofbusiness。

Weshallnotdwellonthispointanylonger。Wemerelystatethissimplefact:Allcircumstanceswhichingeneralgiverisetodifferencesintheperiodsofturnoverofthecapitalsinvestedindifferentbranchesofindustrybringintheirtraindifferencesalsointheturnoverofthevariousindividualcapitalsoperatinginthesamebusiness，providedthesecircumstancesoperateindividually(forinstance，ifonecapitalisthasanopportunitytosellmorerapidlythanhiscompetitor，ifoneemploysmoremethodsshorteningtheworkingperiodsthantheother，etc。)

Onecausewhichactspermanentlyindifferentiatingthetimesofselling，andthustheperiodsofturnoveringeneral，isthedistanceofthemarketinwhichacommodityissoldfromitsplaceofproduction。

Duringtheentiretriptothemarket，capitalfindsitselffetteredinthestateofcommodity-capital。Ifgoodsaremadetoorder，uptothetimeofdelivery；iftheyarenotmadetoorder，theremustbeaddedtothetimeofthetriptothemarketthetimeduringwhichthegoodsareinthemarketwaitingtobesold。Theimprovementofthemeansofcommunicationandtransportationcutsdownabsolutelythewanderingperiodofthecommoditiesbutdoesnoteliminatetherelativedifferenceinthetimeofcirculationofdifferentcommodity-capitalsarisingfromtheirperegrinations，northatofdifferentportionsofthesamecommodity-capitalwhichmigratetodifferentmarkets。Forinstancetheimprovedsailingvesselsandsteamships，whichshortentravelling，dosoequallyfornearanddistantports。Therelativedifferenceremains，althoughoftendiminished。Buttherelativedifferencemaybeshiftedaboutbythedevelopmentofthemeansoftransportationandcommunicationinawaythatdoesnotcorrespondtothegeographicaldistances。Forinstancearailwaywhichleadsfromaplaceofproductiontoaninlandcentreofpopulationmayrelativelyorabsolutelylengthenthedistancetoanearerinlandpointnotconnectedbyrail，ascomparedtotheonewhichgeographicallyismoreremote。Inthesamewaythesamecircumstancesmayaltertherelativedistanceofplacesofproductionfromthelargermarkets，whichexplainsthedeteriorationofoldandtheriseofnewcentresofproductionbecauseofchangesincommunicationandtransportationfacilities。(Tothismustbeaddedthecircumstancesthatlonghaulsarerelativelycheaperthanshortones。)Moreoverwiththedevelopmentoftransportfacilitiesnotonlyisthevelocityofmovementinspaceacceleratedandtherebythegeographicdistanceshortenedintermsoftime。Notonlyisthereadevelopmentofthemassofcommunicationfacilitiessothatforinstancemanyvesselssailsimultaneouslyforthesameport，orseveraltrainstravelsimultaneouslyondifferentrailwaysbetweenthesametwopoints，butfreightvesselsmayclearonconsecutivedaysofthesameweekfromLiverpoolforNewYork，orgoodstrainsmaystartatdifferenthoursofthesamedayfromManchestertoLondon。True，theabsolutevelocity——hencethispartofthetimeofcirculation——isnotalteredbythislattercircumstance，acertaindefinitecapacityofthemeansoftransportationbeinggiven。Butsuccessiveshipmentsofcommoditiescanstarttheirpassageatshorterintervalsoftimeandthusreachthemarketoneafteranotherwithoutaccumulatinginlargequantitiesaspotentialcommodity-capitalbeforeactualshipment。Hencethereturnofcapitallikewiseisdistributedovershortersuccessiveperiodsoftime，sothatapartiscontinuallytransformedintomoney-capital，whiletheothercirculatesascommodity-capital。

Byspreadingthereturnoverseveralsuccessiveperiodsthetotaltimeofcirculationandhencealsotheturnoverareabridged。Thefirsttoincreaseisthefrequencywithwhichthemeansoftransportationfunction，forinstancethenumberofrailwaytrains，asexistingplacesofproductionproducemore，becomegreatercentresofproduction。Thedevelopmenttendsinthedirectionofthealreadyexistingmarket，thatistosay，towardsthegreatcentresofproductionandpopulation，towardsportsofexports，etc。Ontheotherhandtheseparticularlygreattrafficfacilitiesandtheresultantaccelerationofthecapitalturnover(sinceitisconditionalonthetimeofcirculation)giverisetoquickerconcentrationofboththecentresofproductionandthemarkets。Alongwiththisconcentrationofmassesofmenandcapitalthusacceleratedatcertainpoints，thereistheconcentrationofthesemassesofcapitalinthehandsofafew。Simultaneouslyonemaynoteagainashiftingandrelocationofplacesofproductionandofmarketsasaresultofthechangesintheirrelativepositionscausedbythetransformationsintransportfacilities。Aplaceofproductionwhichoncehadaspecialadvantagebybeinglocatedonsomehighwayorcanalmaynotfinditselfrelegatedtoasingleside-track，whichrunstrainsonlyatarelativelylongintervals，whileanotherplace，whichformerlywasremotefromthemainarteriesoftraffic，maynowbesituatedatthejunctionofseveralrailways。Thissecondlocalityisontheupgrade，theformeronthedowngrade。

Changesinthemeansoftransportationthusengenderlocaldifferencesinthetimeofcirculationofcommodities，intheopportunitytobuy，sell，etc。，oranalreadyexistinglocaldifferentiationisdistributeddifferently。

Theimportanceofthiscircumstancefortheturnoverofcapitalisevidencedbythewranglingofthecommercialandindustrialrepresentativesofthevariouslocalitieswiththerailwaymanagements。(Seeforinstancetheabove-quotedBluebookoftheRailwayCommittee。[Seep。154ofthisbook——

Ed。])

Allbranchesofproductionwhichbythenatureoftheirproductaredependentmainlyonlocalconsumption，suchasbreweries，arethereforedevelopedtothegreatestextentintheprincipalcentresofpopulation。

Themorerapidturnoverofcapitalcompensateshereinpartforthecircumstancethatanumberofconditionsofproduction，buildinglots，etc。，aremoreexpensive。

Whereasontheonehandtheimprovementofthemeansoftransportationandcommunicationbroughtaboutbytheprogressofcapitalistproductionreducesthetimeofcirculationofparticularquantitiesofcommodities，thesameprogressandtheopportunitiescreatedbythedevelopmentoftransportandcommunicationfacilitiesmakeitimperative，conversely，toworkforevermoreremotemarkets，inaword——fortheworld-market。Themassofcommoditiesintransitfordistantplacesgrowsenormously，andwithitthereforegrows，bothabsolutelyandrelatively，thatpartofsocialcapitalwhichremainscontinuallyforlongperiodsinthestageofcommodity-capital，withinthetimeofcirculation。Thereisasimultaneousgrowthofthatportionofsocialwealthwhich，insteadofservingasdirectmeansofproduction，isinvestedinmeansoftransportationandcommunicationandinthefixedandcirculatingcapitalrequiredfortheiroperation。

Themererelativelengthofthetransitofthecommoditiesfromtheirplaceofproductiontotheirmarketproducesadifferencenotonlyinthefirstpartofthecirculationtime，thesellingtime，butalsoinitssecondpart，thereconversionofthemoneyintotheelementsoftheproductivecapital，thebuyingtime。SupposeacommodityisshippedtoIndia。Thisrequires，say，fourmonths。Letusassumethatthesellingtimeisequaltozero，i。e。，thecommoditiesaremadetoorderandarepaidforondeliverytotheagentoftheproducer。Thereturnofthemoney(nomatterinwhatform)requiresanotherfourmonths。Thusittakesaltogethereightmonthsbeforeacapitalcanagainfunctionasproductivecapital，renewthesameoperation。Thedifferencesintheturnoverthusoccasionedformoneofthematerialbasesofthevarioustermsofcredit，justasoverseacommerceingeneral，forinstanceinVeniceandGenoa，isoneofthesourcesofthecreditsystem，properlyspeaking。”Thecrisisof1847

enabledthebankingandmercantilecommunityofthattimetoreducetheIndiaandChinausance”(timeallowedforthecurrencyofbillsofexchangebetweenthereandEurope)”fromtenmonths’datetosixmonths’sight，andthelapseoftwentyyearswithalltheaccelerationsofspeedandestablishmentoftelegraphs……rendersnecessary……afurtherreduction”fromsixmonths’sighttofourmonths’dateasafirssteptofourmonths’sight。”ThevoyageofasailingvesselviatheCapefromCalcuttatoLondonisontheaverageunder90days。Ausanceoffourmonths’sightwouldbeequaltoacurrencyofsay150days。Thepresentusanceofsixmonths’sightisequaltoacurrencyofsay210days。”(LondonEconomist，June16，1866。)

Ontheotherhand:”TheBrazilianusanceremainsattwoandthreemonths’sight，billsfromAntwerparedrawn”(onLondon)”atthreemonths’

date，andevenManchesterandBradforddrawuponLondonatthreemonthsandlongerdates。Bytacitconsent，afairopportunityisaffordedtothemerchantofrealisingtheproceedsofhismerchandise，notindeedbefore，butwithinareasonabletimeof，thebillsdrawnagainstitfalldue。Inthisview，thepresentusanceforIndianbillscannotbeconsideredexcessive。

IndianproduceforthemostpartbeingsoldinLondonwiththreemonths’

prompt，andallowingforlossoftimeineffectingsales，cannotberealisedmuchwithinfivemonths，whileanotherperiodoffivemonthswillhavepreviouslyelapsed(onanaverage)betweenthetimeofpurchaseinIndiaandofdeliveryintheEnglishwarehouse。Wehavehereaperiodoftenmonths，whereasthebilldrawnagainstthegoodsdoesnotlivebeyondsevenmonths。”(Ibid。，June30，1866。)OnJuly2，1866，fivebigLondonbanksdealingmainlywithIndiaandChina，andtheParisComptoird’Escompte，gavenoticethat”fromthe1stJanuary，1867，theirbranchesandagenciesintheEastwillonlybuyandsellbillsofexchangeatatermnotexceedingfourmonths’sight。”(Ibid。，July7，1866。)Howeverthisreductionmiscarriedandhadtobeabandoned。(SincethentheSuezCanalhasrevolutionisedallthis。)

Itisamatterofcoursethatwiththelongertimeofcommoditycirculationtheriskofachangeofpricesinthemarketincreases，sincetheperiodinwhichpricechangescantakeplaceislengthened。

Differencesinthetimeofcirculation，partlyindividualbetweenthevariousseparatecapitalsofthesamebranchofbusiness，partlybetweendifferentbranchesofbusinessaccordingtothedifferentusances，whenpaymentisnotmadeinspotcash，arisefromthedifferenttermsofpaymentinbuyingandselling。Weshallnotdwellanylongerhereonthispointwhichisofimportancetothecreditsystem。

Differencesintheturnovertimearisealsofromthesizeofcontractsforthedeliveryofgoods，andtheirsizegrowswiththeextentandscaleofcapitalistproduction。Acontractofdelivery，beingatransactionbetweenbuyerandseller，isanoperationpertainingtothemarket，thesphereofcirculation。Thedifferencesinthetimeofturnoverarisingherestemthereforefromthesphereofcirculation，butreactimmediatelyonthesphereofproduction，anddosoapartfromalltermsofpaymentandconditionsofcredit，hencealsointhecaseofcashpayment。Forinstancecoal，cotton，yarn，etc。，arediscreteproducts。Everydaysuppliesitsquantumoffinishedproduct。Butifthemaster-spinnerorthemine-owneracceptscontractsforthedeliveryofsuchlargequantitiesofproductsasrequire，say，aperiodoffourorsixweeksofconsecutiveworking-days，thenthisisquitethesame，sofarasthetimeofadvancementofcapitalisconcerned，asifacontinuousworkingperiodoffourorsixweekshadbeenintroducedinthislabour-process。Itisofcourseassumedherethattheentirequantityorderedistobedeliveredinonebulk，oratleastispaidforonlyaftertotaldelivery。Individuallyconsidered，everydayhasthusfurnisheditsdefinitequantumoffinishedproduct。Butthisfinishedquantumisonlyapartofthequantitycontractedfor。Whileinthiscasetheportionfinishedsofarisnolongerintheprocessofproduction，stillitliesinthewarehouseaspotentialcapitalonly。

Nowletustakeupthesecondstageofthetimeofcirculation，thebuyingtime，orthatperiodinwhichcapitalisreconvertedfromthemoney-formintotheelementsofproductivecapital。Duringthisperioditmustpersistforashorterorlongertimeinitsconditionofmoney-capital，henceacertainportionofthetotalcapitaladvancedmustallthetimebeintheconditionofmoney-capital，althoughthisportionconsistsofconstantlychangingelements。Forinstance，ofthetotalcapitaladvancedinacertainbusiness，ntimes£；100mustbeavailableintheformofmoney-capital，sothat，whilealltheconstituentpartsofthesentimess£；100arecontinuallyconvertedintoproductivecapital，thissumisneverthelessjustascontinuallyreplenishedbytheinfluxfromthecirculation，fromtherealisedcommodity-capital。Adefinitepartoftheadvancedcapital-valueisthereforecontinuallyintheconditionofmoney-capital，i。e。，aformnotpertainingtoitssphereofproductionbutitssphereofcirculation。

Wehavealreadyseenthattheprolongationofthetimeforwhichcapitalisfetteredintheformofcommodity-capitalonaccountofthedistanceofthemarketresultsindirectdelayofthereturnofthemoneyandconsequentlyalsothetransformationofthecapitalfrommoney-capitalintoproductivecapital。

Wehavefurthermoreseen(ChapterVI)withreferencetothepurchaseofcommodities，thatthetimeofbuying，thegreaterorsmallerdistancefromthemainsourcesoftherawmaterial，makesitnecessarytopurchaserawmaterialforalongerperiodandhaveitavailableintheformofaproductivesupply，oflatentorpotentialproductivecapital；thatinconsequenceitincreasestheamountofcapitaltobeadvancedatonetime，andthetimeforwhichitmustbeadvanced，ifthescaleofproductionremainsotherwisethesame。

Asimilareffectisproducedinvariousbranchesofbusinessbythemoreorlessprolongedperiodsinwhichratherlargequantitiesofrawmaterialarethrownonthemarket。InLondonforexamplegreatauctionsalesofwooltakeplaceeverythreemonths，andthewoolmarketiscontrolledbythem。Thecottonmarketontheotherhandisonthewholerestockedcontinuously，ifnotuniformly，fromharvesttoharvest。Suchperiodsdeterminetheprincipaldateswhentheserawmaterialsarebought。Theireffectisparticularlygreatonspeculativepurchasesnecessitatingadvancesforlongerorshorterperiodsfortheseelementsofproduction，justasthenatureoftheproducedcommoditiesactsonthespeculative，intentionalwithholdingofaproductforalongerorshortertermintheformofpotentialcommodity-capital。”Theagriculturistmustalsobeaspeculatortoacertainextentandthereforeholdbackthesaleofhisproductsifprevailingconditionssosuggest……”Herefollowafewgeneralrules。”……Howeverinthesaleoftheproducts，italldependsmainlyontheperson，theproductitself，andthelocality。Anyonewho，besidesbeingskilfulandlucky(！)，isprovidedwithsufficientworkingcapitalwillnotbeblamedifforoncehekeepshisgraincropstoredaslongasayearwhenpricesareunusuallylow。Ontheotherhandamanwholacksworkingcapitalorisaltogetherdevoid(！)ofspeculativespiritwilltrytogetthecurrentaveragepricesandwillbecompelledtosellassoonandasoftenasopportunitypresentsitself。Itwillalmostalwaysmeanalosstokeepwoolstoredlongerthanayear，whilecornandoilseedmaybestoredforseveralyearswithoutdetrimenttotheirpropertiesandhighquality。Productsgenerallysubjecttoseverfluctuationatshortintervals，forinstanceoilseed，hops，teaselandthelike，maybestoredtogoodadvantageduringyearsinwhichthesellingpriceisfarbelowthepriceofproduction。Itisleastpermissibletopostponethesaleofarticleswhosepreservationinvolvesdailyexpense，suchasfattedcattle，orwhichareperishable，suchasfruit，potatoes，etc。Invariouslocalitiesacertainproductfetchesitslowestaveragepriceincertainseasons，itshighestinothers。Thus，insomepartstheaveragepriceofcornisloweraroundSt。Martin’sDaythanbetweenChristmasandEaster。Furthermoresomeproductssellwellincertainlocalitiesonlyatcertaintimes，asisthecasewithwoolinthewoolmarketsofthoselocalitieswherethewooltradeatothertimesisdull，etc。”(Kirchhof，p。302。)

Inthestudyofthesecondhalfofthetimeofcirculation，duringwhichthemoneyisreconvertedintotheelementsofproductivecapital，itisnotonlythistransformation，takenbyitself，thatshouldbegivenconsideration，notonlythetimewithinwhichthemoneyreturns，accordingtothedistanceofthemarketinwhichtheproductissold。Whatmustalsobeconsidered，andprimarilyso，istheamountofthatpartoftheadvancedcapitalwhichisalwaystobeavailableintheformofmoney，intheconditionofmoney-capital。

Apartfromallspeculation，thevolumeofthepurchasesofthosecommoditieswhichmustalwaysbeavailableasaproductivesupplydependsonthetimesoftherenewalofthissupply，henceoncircumstanceswhichintheirturnaredependentonmarketconditionsandwhichthereforearedifferentfordifferentrawmaterials。Inthesecasesmoneymustbeadvancedfromtimetotimeinratherlargequantitiesandinlumpsums。Itreturnsmoreorlessrapidly，butalwaysininstalments，accordingtotheturnoverofcapital。Oneportionofit，namelythepartreconvertedintowages，isjustascontinuallyexpendedagainatshortintervals。Butanotherportion，namelythatwhichistobereconvertedintorawmaterial，etc。，mustbeaccumulatedforratherlongperiods，asareservefundforeitherbuyingorpaying。Thereforeitexistsintheformofmoney-capital，althoughthevolumeinwhichitexistsassuch，changes。

Weshallseeinthenextchapterthatothercircumstancesarisingeitherfromtheprocessofproductionorthatofcirculationmakeitnecessaryforacertainportionoftheadvancedcapitaltobeavailableintheformofmoney。Ingeneralitmustbenotedthattheeconomistsareverypronetoforgetnotonlythatapartofthecapitalrequiredinabusinesspassessuccessivelythroughthethreestagesofmoney-capital，productivecapital，andcommodity-capital，butalsothatdifferentportionsofitcontinuouslyandsimultaneouslypossesstheseforms，althoughtherelativemagnitudesoftheseportionsvaryallthetime。Itisespeciallythepartalwaysavailableasmoney-capitalthatisforgottenbytheeconomists，althoughpreciselythiscircumstanceishighlyessentialforanunderstandingofbourgeoiseconomyandconsequentlymakesitsimportancefeltassuchalsoinpractice。

1885:CapitalII——Chapter15

partII

THETURNOVEROFCAPITAL

CHAPTERXV

EFFECTOFTHETIME

OFTURNOVERONTHEMAGNITUDE

OFADVANCEDCAPITALInthischapterandinthenext，thesixteenth，weshalltreatoftheinfluenceofthetimeofturnoverontheself-expansionofcapital。

Takethecommodity-capitalwhichistheproductofaworkingperiodof，say，nineweeks。Letus，forthetimebeing，leaveasidethatportionofthevalueoftheproductwhichisaddedtoitbytheaveragewearandtearofthefixedcapital，andalsothesurplus-valueaddedtotheproductduringtheprocessofproduction。Thevalueofthisproductisthenequaltothatofthecirculatingcapital，advancedforitsproduction，i。e。，ofthewagesandtherawandauxiliarymaterialsconsumedinitsproduction。

Letthisvaluebe£；9000，sothattheweeklyoutlayis£；100。

Theperiodofproduction，whichherecoincideswiththeworkingperiod，isthereforenineweeks。Itisimmaterialwhetheritisassumedthatthisistheworkingperiodofacontinuousproduct，orwhetheritisacontinuousworkingperiodforadiscreteproduct，solongasthequantityofdiscreteproductbroughttomarketatonetimecostsnineweeks’labour。Letthetimeofcirculationbethreeweeks。Thentheentireperiodofturnoveristwelveweeks。Attheendofnineweekstheadvancedproductivecapitalisconvertedintocommodity-capital，butnotitstaysforthreeweeksintheperiodofcirculation。Thenewperiodofproductionthereforecannotstartbeforethebeginningofthethirteenthweek，andproductionwouldbeatastandstillforthreeweeks，orforaquarteroftheentireperiodofturnover。Itagaindoesnotmakeanydifferencewhetheritisassumedthatittakessolongonanaveragetoselltheproduct，orthatthislengthoftimeisboundupwiththeremotenessofthemarketorthetermsofpaymentforthegoodssold。Productionwouldbestandingstillforthreeweekseverythreemonths，makingitfourtimesthree，ortwelveweeksinayear，whichmeansthreemonths，orone-quarter，oftheannualperiodofturnover。

Hence，ifproductionistobecontinuousandcarriedalongthesamescaleweekafterweek，thereisonlythisalternative:

Eitherthescaleofproductionmustbereduced，sothatthe£；900

sufficetokeeptheworkgoingbothduringtheworkingperiodandthetimeofcirculationofthefirstturnover，isthencommencedwiththetenthweek，beforethefirstperiodofturnoveriscompleted，fortheperiodofturnoveristwelveweeks，andtheworkingperiodnineweeks。Asumof£；900distributedovertwelveweeksmakes£；75perweek。Itisevidentinthefirstplacethatsuchareducedscaleofbusinesspresupposeschangeddimensionsofthefixedcapitalandtherefore，onthewhole，acurtailmentofthebusiness。Inthesecondplace，itisquestionablewhethersuchareductioncantakeplaceatall，forineachbusinessthereexists，commensuratewiththedevelopmentofitsproduction，anormalminimumofinvestedcapitalessentialtomaintainitscapacitytocomplete。Thisnormalminimumgrowssteadilywiththeadvanceofcapitalistproduction，andhenceitisnotfixed。Therearenumerousintermediategradesbetweenthenormalminimumexistingatanyparticulartimeandtheeverincreasingnormalmaximum，amediumwhichpermitsofmanydifferentscalesofcapitalinvestment。

Withinthelimitsofthismediumreductionsmaytakeplace，theirlowestlimitbeingtheprevailingnormalminimum。

Whenthereisahitchinproduction，whenthemarketsareoverstocked，andwhenrawmaterialsriseinprice，etc。，thenormaloutlayofcirculatingcapitalisrestricted——oncethepatternofthefixedcapitalhasbeenset——bycuttingdownworkingtimeto，say，onehalf。Ontheotherhand，intimesofprosperity，thepatternofthefixedcapitalgiven，thereisanabnormalexpansionofthecirculatingcapital，partlythroughtheextensionofworkingtimeandpartlythroughitsintensification。Inbusinesseswhichhave，fromtheoutset，toreckonwithsuchfluctuations，thesituationisrelievedpartlybyrecoursetotheabovemeasuresandpartlybyemployingsimultaneouslyagreaternumberoflabourers，incombinationwiththeapplicationofreservefixedcapital，suchasreservelocomotivesonrailways，etc。

However，suchabnormalfluctuationsarenotconsideredhere，whereweassumenormalconditions。

Inordertomakeproductioncontinuous，therefore，theexpenditureofthesamecirculatingcapitalisheredistributedoveralongerperiod，overtwelveweeksinsteadofnine。Ineverysectionoftimethereconsequentlyfunctionsareducedproductivecapital。Thecirculatingportionoftheproductivecapitalisreducedfrom100to75，orone-quarter。Thetotalamountbywhichtheproductivecapitalfunctioningforaworkingperiodofnineweeksisreducedequals9times25，or£；225，orone-quarterof£；900。Buttheratioofthetimeofcirculationtothatofturnoverislikewisethree-twelfths，orone-quarter。Itfollowstherefore:circulationoftheproductivecapitaltransformedintocommodity-capital，ifitisrathertobecarriedonsimultaneouslyandcontinuouslyweekafterweek，andifnospecialcirculatingcapitalisavailableforthispurpose，itcanbedoneonlybycurtailingproductiveoperations，byreducingthecirculatingcomponentofthefunctioningproductivecapital。Theportionofcirculatingcapitalthussetfreeforproductionduringthetimeofcirculationistothetotaladvancedcirculatingcapitalasthetimeofcirculationistotheperiodofturnover。Thisapplies，ashasalreadybeenstated，onlytobranchesofproductioninwhichthelabour-processiscarriedononthesamescaleweekafterweek，wherethereforenovaryingamountsofcapitalaretobeinvestedindifferentworkingperiods，asforinstanceinagriculture。

Ifontheotherhandweassumethatthenatureofthebusinessexcludesareductionofthescaleofproduction，andthusofthecirculatingcapitaltobeadvancedeachweek，thencontinuityofproductioncanbesecuredonlybyadditionalcirculatingcapital，intheabove-namedcaseof£；300。Duringthetwelve-weekturnoverperiod，£；1，200aresuccessivelyinvested，and£；300isone-quarterofthissumasthreeweeksisoftwelve。Attheendoftheworkingtimeofnineweeksthecapital-valueof£；900hasbeenconvertedfromtheformofproductiveintothatofcommodity-capital。Itsworkingperiodisconcluded，butitcannotbere-openedwiththesamecapital。Duringthethreeweeksinwhichitstaysinthesphereofcirculation，functioningascommodity-capital，itisinthesamestate，sofarastheprocessofproductionisconcerned，asifitdidnotexistatall。Weruleoutinthepresentcaseallcreditrelationsandtakeforgrantedthatthecapitalistoperatesonlywithhisownmoney。

Butduringthetimethecapitaladvancedforthefirstworkingperiod，havingcompleteditsprocessofproduction，staysthreeweeksintheprocessofcirculation，therefunctionsanadditionalcapitalinvestmentof£；300，sothatthecontinuityofproductionisnotbroken。

Now，thefollowingmustbenotedinthisconnection:

Firstly:Theworkingperiodofthecapitalof£；900firstadvancediscompletedatthecloseofnineweeksanditdoesnotreturnuntilafterthreeweeksareup，thatistosay，atthebeginningofthethirteenthweek。Butanewworkingperiodisimmediatelybegunwiththeadditionalcapitalof£；300。Bythismeanscontinuityofproductionismaintained。

Secondly:Thefunctionsoftheoriginalcapitalof£；900

andofthecapitalof£；300newlyaddedatthecloseofthefirstnine-weekworkingperiod，inauguratingthesecondworkingperiodaftertheconclusionofthefirstwithoutanyinterruption，are，oratleastcouldbe，clearlydistinguishedinthefirstperiodofturnover，whiletheycrosseachothereachotherinthecourseofthesecondperiodofturnover。

Letusmakethismatterplainer。

Firstperiodofturnoverof12weeks。Firstworkingperiodof9weeks；theturnoverofthecapitaladvancedforthisiscompletedatthebeginningofthe13thweek。Duringthelast3weekstheadditionalcapitalof£；300functions，openingthesecondworkingperiodof9

weeks。