第14章

Allkindsofquidproquo’sarejumbledtogetherwhenAdamSmithsays:”Wages，profit，andrent，arethethreeoriginalsourcesofallrevenueaswellasofallexchangeablevalue。Allotherrevenueisultimatelyderivedfromsomeoneorotherofthese。”(BookI，Ch。6，p。48。)

1)Allmemberofsocietynotdirectlyengagedinreproduction，withorwithoutlabour，canobtaintheirshareoftheannualcommodity-product——inotherwords，theirarticlesofconsumption——primarilyoutofthehandsofthoseclassestowhichtheproductfirstaccrues——productivelabourers，industrialcapitalists，andlandlords。Tothatextenttheirrevenuesaremateriallyderivedfromwages(oftheproductivelabourers)，profit，andrent，andappearthereforeasderivativevis-a-visthoseprimaryrevenues。Butontheotherhandtherecipientsoftheserevenues，derivedinthissense，drawthembyvirtueoftheirsocialfunctions——asaking，priest，professor，prostitute，soldier，etc。，andtheymay，therefore，regardthesefunctionsastheoriginalsourcesoftheirrevenue。

2)——andhereAdamSmith’sridiculousblunderreachesitsclimax。Afterstartingbycorrectlydefiningthecomponentpartsofthevalueofthecommoditiesandthesumofthevalue-productincorporatedinthem，andthendemonstratinghowthesecomponentpartsformsomanydifferentsourcesofrevenue，[39]afterthusderivingtherevenuesfromthevalue，heproceedsintheoppositedirection——andthisremainsthepredominantconceptionwithhim——andturnstherevenuesfrom”componentparts”into”originalsourcesofallexchangeablevalue，”therebythrowingthedoorswideopentovulgareconomy。(SeeourRoscher。[MarxhasinmindW。Roscher’sSystemderVokswirtschaft。BandI:DieGrundlagenderNationalö；konomie。Dritte，vermehrteundverbesserteAuflage。

StuttgartundAugsburg，1858——Ed。])3。TheConstantPartofCapitalLetusnowseehowAdamSmithtriestospirittheconstantpartofthecapital-valueawayfromthecommodity-value。”Inthepriceofcorn，forexample，onepartpaystherentofthelandlord。”

Theoriginofthisconstituentofvaluehasnomoretodowiththecircumstancethatitispaidtothelandlordandformsarevenueforhimintheshapeofrentthantheoriginoftheotherconstituentsofvaluehastodowiththefactthatasprofitandwagestheyformsourcesofrevenue。”Another[portion]paysthewagesormaintenanceofthelabourers”[”andlabouringcattle，”headds]”employedinproducingit，andthethirdpaystheprofitofthefarmer。Thesethreepartsseem”[theyseemindeed]”eitherimmediatelyorultimatelytomakeupthewholepriceofcorn。”[40]Thisentireprice，i。e。，thedeterminationofitsmagnitude，isabsolutelyindependentofitsdistributionamongthreekindsofpeople。”Afourthpart，itmayperhapsbethought，isnecessaryforreplacingthestockofthefarmer，orforcompensatingthewearandtearofhislabouringcattle，andotherinstrumentsofhusbandry。Butitmustbeconsideredthatthepriceofanyinstrumentofhusbandry，suchasalabouringhorse，isitselfmadeupofthesamethreeparts:therentofthelanduponwhichheisreared，thelabouroftendingandrearinghim，andtheprofitsofthefarmerwhoadvancesboththerentofthisland，andthewagesofthislabour。

Thoughthepriceofthecorn，therefore，maypaythepriceaswellasthemaintenanceofthehorse，thewholepricestillresolvesitselfeitherimmediatelyorultimatelyintothesamethreepartsofrent，labour”(hemeanswages)，”andprofit。”(BookI，Ch。6，p。42。)

ThisisverbatimallthatAdamSmithhastosayinsupportofhisastonishingdoctrine。Hisproofconsistssimplyintherepetitionofthesameassertion。

Headmits，forinstance，thatthepriceofcorndoesnotonlyconsistofv+s，butalsoofthepriceofthemeansofproductionconsumedintheproductionofcorn，henceofacapital-valuenotinvestedinlabour-powerbythefarmer。But，hesays，thepricesofallthesemeansofproductionresolvethemselvesintov+s，thesameasthepriceofcorn。Heforgets，however，toadd:and，moreover，intothepricesofthemeansofproductionconsumedintheirowncreation。Herefersusfromonebranchofproductiontoanother，andfromthattoathird。Thecontentionthattheentirepriceofcommoditiesresolvesitself”immediately”or”ultimately”intov+swouldnotbeahollowsubterfugeonlyifhewereabletodemonstratethatthecommoditieswhosepriceresolvesitselfimmediatelyintoc(priceofconsumedmeansofproduction)+v+s，areultimatelycompensatedbycommoditieswhichcompletelyreplacethose”consumedmeansofproduction，”andwhicharethemselvesproducedbythemereoutlayofvariablecapital，i。e。，byamereinvestmentofcapitalinlabour-power。Thepriceoftheselastcommodity-productswouldthenbeimmediatelyv+s。Consequentlythepriceoftheformer，c+v+s，wherecstandsfortheconstantpartofcapital，wouldalsobeultimatelyresolvableintov+s。AdamSmithhimselfdidnotbelievethathehadfurnishedsuchaproofbyhisexampleofthecollectorsofScotchpebbles，who，accordingtohim1)donotgeneratesurplus-valueofanydescription，butproduceonlytheirownwages，and2)donotemployanymeansofproduction(theydo，however，employthem，suchasbaskets，sacks，andothercontainersforcarryingthepebbles)。

WehavealreadyseenabovethatAdamSmithhimselflateronoverthrowshisowntheory，withouthoweverbeingconsciousofhiscontradictions。

Buttheirsourceistobefoundpreciselyinhisscientificpremises。Thecapitalconvertedintolabourproducesagreatervaluethanitsown。How？

SaysAdamSmith:bythelabourersimpartingduringtheprocessofproductiontothethingsonwhichtheyworkavaluewhichformsnotonlyanequivalentfortheirownpurchaseprice，butalsoasurplus-value(profitandrent)

apportionednottothembuttotheiremployers。Thatisalltheyaccomplish，andalltheycanaccomplish。Andwhatistrueoftheindustriallabourofonedayistrueofthelaboursetinmotionbytheentirecapitalistclassduringoneyear。Hencetheaggregatemassoftheannualvalueproducedbysocietycanresolveitselfonlyintov+s，intoanequivalentbywhichthelabourersreplacethecapital-valueexpendedforthepurchaseoftheirownlabour-power，andintoanadditionalvaluewhichtheymustdeliveroverandabovethistotheiremployers。Butthesetwoelementsofcommodity-valueformatthesametimesourcesofrevenueforthevariousclassesengagedinreproduction:thefirstisthesourceofwages，therevenueofthelabourers；

thesecondthatofsurplus-value，aportionofwhichisretainedbytheindustrialcapitalistintheformofprofit，whileanotherisgivenupbyhimasrent，therevenueofthelandlord。Where，then，shouldanotherpor-tionofvaluecomefrom，whentheannualvalue-productcontainsnootherelementsthanv+s？Weareproceedingherefromsimplereproduction。

Sincetheentirequantityofannuallabourresolvesitselfintolabourneededforthereproductionofthecapital-valuelaidoutinlabour-power，andintolabourneededforthecreationofsurplus-value，whereshouldthelabourfortheproductionofacapital-valuenotlaidoutinlabour-powercomefrom？

Thecaseisasfollows:

1)AdamSmithdeterminesthevalueofacommoditybytheamountoflabourwhichthewage-laboureraddstothesubjectoflabour。Hecallsitliterally”materials，”sinceheisdealingwithmanufacture，whichitselfisworkingupproductsoflabour。Butthisdoesnotalterthematter。Thevaluewhichthelaboureraddstoathing(andthis”adds”istheexpressionofAdamSmith)isentirelyindependentofwhetherornotthisobjecttowhichvalueisaddedhaditselfanyvaluebeforethisaddition。Thelabourerthereforeproducesavalueintheformofacommodity。This，accordingtoAdamSmith，ispartlyanequivalentforhiswages，andthispart，then，isdeterminedbythemagnitudeofvalueofhiswages；dependingonthatmagnitudehehastoaddlabourinordertoproduceorreproduceavalueequaltothatofhiswages。Ontheotherhandthelaboureraddsmorelabouroverandabovethelimitsodrawn，andthiscreatessurplus-valueforthecapitalistemployinghim。Whetherthissurplus-valueremainsentirelyinthehandsofthecapitalistorpartsofitareyieldedbyhimtothirdpersons，doesnotintheleastaltereitherthequalitative(thatisatallsurplus-value)orthequantitative(magnitude)determinationofthesurplus-valueaddedbythewage-labourer。Itisvaluethesameasanyotherportionofthevalueoftheproduct，butitdiffersinthatthelabourerhasnotreceivedanyequivalentforit，norwillreceiveanylateron，inthat，onthecontrary，thisvalueisappropriatedbythecapitalistwithoutanyequivalent。Thetotalvalueofacommodityisdeterminedbythequantityoflabourexpendedbythelabourerinitsproduction；oneportionofthistotalvalueisdeterminedbythefactthatitisequaltothevalueofthewages，i。e。，anequivalentforthem。Thesecondpart，thesurplus-value，is，therefore，necessarilylikewisedeterminedasequaltothetotalvalueoftheproductminusthatpartofitsvaluewhichisequivalenttothewages；henceequaltotheexcessofthevalueproducedinthemakingofthecommodityoverthatpartofthevaluecontainedinitwhichisanequivalentforhiswages。

2)Thatwhichistrueofacommodityproducedinsomeindividualindustrialestablishmentbyanyindividuallaboureristrueoftheannualproductofallbranchesofbusinessasawhole。Thatwhichistrueoftheday’sworkofsomeindividualproductivelaboureristrueoftheyear’sworksetinmotionbytheentireclassofproductivelabourers。It”fixes”(AdamSmith’sexpression)intheannualproductofatotalvaluedeterminedbythequantityoftheannuallabourexpended，andthistotalvalueresolvesitselfintooneportiondeterminedbythatpartoftheannuallabourwherewiththeworking-classcreatesanequivalentofitsannualwages，infact，thesewagesthemselves；andintoanotherportiondeterminedbytheadditionalannuallabourbywhichthelabourercreatessurplus-valueforthecapitalistclass。Theannualvalue-productcontainedintheannualproductconsiststhereforeofbuttwoelements:namely，theequivalentoftheannualwagesreceivedbytheworking-class，andthesurplus-valueannuallyprovidedforthecapitalistclass。Now，theannualwagesaretherevenueoftheworking-class，andtheannualquantityofsurplus-valuetherevenueofthecapitalistclass；hencebothofthemrepresenttherelativesharesintheannualfundforconsumption(thisviewiscorrectwhendescribingsimplereproduction)andarerealisedinit。Thereis，then，noroomleftanywherefortheconstantcapital-value，forthereproductionofthecapitalfunctioningintheformofmeansofproduction。AndAdamSmithstatesexplicitlyintheintroductiontohisworkthatallportionsofthevalueofcommoditieswhichserveasrevenuecoincidewiththeannualproductoflabourintendedforthesocialfundforconsumption:”Toexplaininwhathasconsistedtherevenueofthegreatbodyofthepeople，orwhathasbeenthenatureofthosefunds，which，indifferentagesandnations，havesuppliedtheirannualconsumption，istheobjectofthesefirstFourBooks。”(P。12。)

Andintheveryfirstsentenceoftheintroductionweread:”Theannuallabourofeverynationisthefund，whichoriginallysuppliesitwithallthenecessariesandconveniencesoflifewhichitannuallyconsumes，andwhichconsistsalwayseitherintheimmediateproducedofthatlabour，orinwhatispurchasedwiththatproducefromothernations。”(P。11。)

NowAdamSmith’sfirstmistakeconsistsinequatingthevalueoftheannualproducttothenewlyproducedannualvalue。

Thelatterisonlytheproductoflabourofthepastyear，theformerincludesbesidesallelementsofvalueconsumedinthemakingoftheannualproduct，butwhichwereproducedintheprecedingandpartlyevenearlieryears:meansofproductionwhosevaluemerelyre-appears——

which，asfarastheirvalueisconcerned，havebeenneitherproducednorreproducedbythelabourexpendedinthepastyear。BythisconfusionAdamSmithspiritsawaytheconstantportionofthevalueoftheannualproduct。

Thisconfusionrestsonanothererrorinhisfundamentalconception:Hedoesnotdistinguishthetwo-foldnatureoflabouritself:oflabourwhichcreatesvaluebyexpendinglabour-power，andoflabourasconcrete，usefulwork，whichcreatesarticlesofuse(use-values)。Thetotalquantityofthecommoditiesfabricatedannually，inotherwords，thetotalannualproductistheproductoftheusefullabouractiveduringthepastyear；itisonlyduetothefactthatsociallyemployedlabourwasspentinaramifiedsystemofusefulkindsoflabourthatallthesecommoditiesexist；itisduetothisfactalonethatthevalueofthemeansofproductionconsumedintheproductionofcommoditiesandreappearinginanewbodilyformispreservedintheirtotalvalue。Thetotalannualproduct，then，istheresultoftheusefullabourexpendedduringtheyear；

butonlyapartofthevalueoftheannualproducthasbeencreatedduringtheyear；thisportionistheannualvalue-product，inwhichthequantityoflaboursetinmotionduringtheyearisrepresented。

Hence，ifAdamSmithsaysinthepassagejustcited:”Theannuallabourofeverynationisthefundwhichoriginallysuppliesitwithallthenecessariesandconveniencesoflifewhichitannuallyconsumes，etc。，”hetakestheone-sidedstandpointofsolelyusefullabour，whichhasindeedgivenallthesemeansofsubsistencetheirconsumableform。Butheforgetsthatthiswasimpossiblewithouttheassistanceofinstrumentsandsubjectsoflaboursuppliedbyformeryears，andthat，therefore，the”annuallabour，”whileitcreatevalue，didnotcreateallthevalueoftheproductsfabricatedbyit；thatthevaluenewlyproducedissmallerthanthevalueoftheproduct。

WhilewecannotreproachAdamSmithforgoinginthisanalysisnofartherthanallhissuccessors(althoughastepintherightdirectioncouldalreadybediscernedamongthephysiocrats)，hesubsequentlygetslostinachaosandthismainlybecausehis”esoteric”conceptionofthevalueofcommoditiesingeneralisconstantlycontravenedbyexotericconceptions，whichonthewholeprevailwithhim，andyethisscientificinstinctpermitstheesotericstandpointtore-appearfromtimetotime。4。CapitalandRevenueinAdamSmithThatportionofthevalueofeverycommodity(andthereforealsooftheannualproduct)whichisbutanequivalentofthewages，isequaltothecapitaladvancedbythecapitalistforlabour-power；i。e。，isequaltothevariableportionofthetotalcapitaladvanced。Thecapitalistrecoversthisportionofthetotalcapitalthroughaportionofthenewlyproducedvalueofthecommoditiessuppliedbythewage-labourers。Whetherthevariablecapitalisadvancedinthesensethatthecapitalistpaysthelabourerinmoneyforhisshareinaproductwhichisnotyetreadyforsaleorwhich，thoughready，hasnotyetbeensoldbythecapitalist，orwhetherhepayshimwithmoneyalreadyobtainedbythesaleofcommoditiespreviouslysuppliedbythelabourer，orwhetherhehasdrawnthismoneyinadvancebymeansofcredit——inallthesecasesthecapitalistexpendsvariablecapital，whichpassesintothehandsofthelabourersintheformofmoney，andontheotherhandhepossessestheequivalentofthiscapital-valueinthatportionofthevalueofhiscommoditiesinwhichthelabourerhasproducedanewhisshareofitstotalvalue，inotherwords，inwhichhehasproducedthevalueofhisownwages。Insteadofgivinghimthisportionofthevalueinthebodilyformofhisownproduct，thecapitalistpaysittohiminmoney。Forthecapitalistthevariableportionofhisadvancedcapital-valuenowexistsintheformofcommodities，whilethelabourerhasreceivedtheequivalentforhissoldlabour-powerintheformofmoney。

Nowwhilethatportionofthecapitaladvancedbythecapitalist，whichhasbeenconvertedbythepurchaseoflabour-powerintovariablecapital，functionsintheprocessofproductionitselfasoperativelabour-powerandbytheexpenditureofthispowerisproducedanewasanewvalue，intheformofcommodities，i。e。，isreproduced——henceareproduction，ornewproduction，ofadvancedcapital-value——thelabourerspendsthevalue，orprice，ofhissoldlabour-poweronmeansofsubsistence，onmeansforthereproductionofhislabour-power。Anamountofmoneyequaltothevariablecapitalformshisincome，hencehisrevenue，whichlastsonlysolongashecansellhislabour-powertothecapitalist。

Thecommodityofthewage-labourer——hislabourpower——servesasacommodityonlytotheextentthatitisincorporatedinthecapitalofthecapitalist，actsascapital；ontheotherhandthecapitalexpendedbythecapitalistasmoney-capitalinthepurchaseoflabour-powerfunctionsasarevenueinthehandsoftheselleroflabour-power，thewagelabourer。

Variousprocessesofcirculationandproductioninterminglehere，whichAdamSmithdoesnotdistinguish。

First:Actspertainingtotheprocessofcirculation。

Thelabourersellshiscommodity——labour-power——tothecapitalist；

themoneywithwhichthecapitalistbuysitisfromhispointofviewmoneyinvestedfortheproductionofsurplus-value，hencemoney-capital；itisnotspentbutadvanced。(Thisistherealmeaningof”advance”——theavanceofthephysiocrats——nomatterwherethecapitalistgetsthemoney。Everyvaluewhichthecapitalistpaysoutforthepurposesoftheproductiveprocessisadvancedfromhispointofview，regardlessofwhetherthistakesplacebeforeorpostfestum；itisadvancedtotheprocessofproductionitself。)Thesametakesplacehereasineveryothersaleofcommodities:

Thesellergivesawayause-value(inthiscasehislabour-power)andreceivesitsvalue(realisesitsprice)inmoney；thebuyergivesawayhismoneyandreceivesinreturnthecommodityitself——inthiscaselabour-power。

Second:Intheprocessofproductionthepurchasedlabour-powernowformsapartofthefunctioningcapital，andthelabourerhimselfservesheremerelyasaspecialbodilyformofthiscapital，distinguishedfromitselementsexistinginthebodilyformofmeansofproduction。Duringtheprocess，byexpendinghislabour-power，thelaboureraddsvaluetothemeansofproductionwhichheconvertsintoproductsequaltothevalueofhislabour-power(exclusiveofsurplus-value)；hethereforreproducesforthecapitalistintheformofcommoditiesthatportionofhiscapitalwhichhasbeen，orhastobe，advancedbyhimforwages，producesforhimanequivalentofthelatter；hencehereproducesforthecapitalistthatcapitalwhichthelattercan”advance”oncemoreforthepurchaseoflabour-power。

Third:Inthesaleofacommodityoneportionofitssellingpricereplacesthevariablecapitaladvancedbythecapitalist，wherebyontheonehandheisenabledanewtobuylabour-power，andthelabourerontheothertosellitanew。

Inallpurchasesandsalesofcommodities——sofarasonlythesetransactionsareunderdiscussion——itisquiteimmaterialwhatbecomesoftheproceedsthesellerreceivesforhiscommodities，andwhatbecomesoftheboughtarticlesofuseinthehandsofthebuyer。Hence，sofarasthemereprocessofcirculationisconcerned，itisquiteimmaterialthatthelabour-powerboughtbythecapitalistreproducescapital-valueforhim，andthatontheotherhandthemoneyreceivedbythelabourerasthepurchase-priceofhislabour-powerconstituteshisrevenue。Themagnitudeofvalueofthelabourer’sarticleofcommerce，hislabour-power，isnotaffectedeitherbyitsforming”revenue”forhimorbythefactthattheuseofthisarticleofcommercebythebuyerreproducescapital-valueforthisbuyer。

Sincethevalueoflabour-power——i。e。，theadequatesellingpriceofthiscommodity——isdeterminedbythequantityoflabourrequiredforitsreproduction，andthisquantityoflabouritselfisheredeterminedbythatneededfortheproductionofthenecessarymeansofsubsistenceofthelabourer，henceforthemaintenanceofhisexistence，thewagesbecometherevenueonwhichthelabourerhastolive。

Itisentirelywrong，whenAdamSmithsays(p。223):”Thatportionofthestockwhichislaidoutinmaintainingproductivehands……

afterhavingservedinthefunctionofacapitaltohim[thecapitalist]……constitutesarevenuetothem”[thelabourers]。Themoneywithwhichthecapitalistpaysforthelabour-powerpurchasedbyhim”servesinthefunctionofacapitaltohim，”sincehetherebyincorporateslabour-powerinthematerialconstituentsofhiscapitalandthusenableshiscapitaltofunctionaltogetherasproductivecapital。Wemustmakethisdistinction:

Thelabour-powerisacommodity，notcapital，inthehandsofthelabourer，anditconstitutesforhimarevenuesolongashecancontinuouslyrepeatitssale；itfunctionsascapitalafteritssale，inthehandsofthecapitalist，duringtheprocessofproductionitself。Thatwhichhereservestwiceislabour-power:asacommoditywhichissoldatitsvalue，inthehandsofthelabourer；asapower-producingvalueanduse-value，inthehandsofthecapitalistwhohasboughtit。Butthelabourerdoesnotreceivethemoneyfromthecapitalistuntilafterhehasgivenhimtheuseofhislabour-power，afterithasalreadybeenrealisedinthevalueoftheproductoflabour。Thecapitalistpossessesthisvaluebeforehepaysforit。Henceitisnotthemoneywhichfunctionstwice:

first，asthemoney-formofthevariablecapital，andthenaswages。Onthecontraryitislabour-powerwhichhasfunctionedtwice:first，asacommodityinthesaleoflabour-power(instipulatingtheamountofwagestobepaid，moneyactsmerelyasanidealmeasureofvalueandneednotevenbeinthehandsofthecapitalist)；secondly，intheprocessofproduction，inwhichitfunctionsascapital，i。e。，asanelement，inthehandsofthecapitalist，creatinguse-valueandvalue。Labour-poweralreadysupplied，intheformofcommodities，theequivalentwhichistobepaidtothelabourer，beforeitispaidbythecapitalisttothelabourerinmoney-form。Hencethelabourerhimselfcreatesthefundoutofwhichthecapitalistpayshim。Butthisisnotall。

Themoneywhichthelabourerreceivesisspentbyhiminordertopreservehislabour-power，or——viewingthecapitalistclassandtheworking-classintheirtotality——inordertopreserveforthecapitalisttheinstrumentbymeansofwhichalonehecanremainacapitalist。

Thusthecontinuouspurchaseandsaleoflabour-powerperpetuatesontheonehandlabour-powerasanelementofcapital，byvirtueofwhichthelatterappearsasthecreatorofcommodities，articlesofusehavingvalue，byvirtueofwhich，furthermore，thatportionofcapitalwhichbuyslabour-poweriscontinuallyrestoredbylabour-power’sownproduct，andconsequentlythelabourerhimselfconstantlycreatesthefundofcapitaloutofwhichheispaid。Ontheotherhandtheconstantsaleoflabour-powerbecomesthesource，everrenewingitself，ofthemaintenanceofthelabourerandhencehislabour-powerappearsasthatfacultythroughwhichhesecurestherevenuebywhichhelives。Revenueinthiscasesignifiesnothingelsethanaappropriationofvalueseffectedbyeverrepeatedsalesofacommodity(labour-power)，thesevaluesservingonlyforthecontinualreproductionofthecommoditytobesold。AndtothisextentSmithisrightwhenhesaysthattheportionofthevalueoftheproductcreatedbythelabourerhimselfforwhichthecapitalistpayshimanequivalentintheformofwages，becomesthesourceofrevenueforthelabourer。Butthisdoesnotalterthenatureormagnitudeofthisportionofthevalueofthecommodityanymorethanthevalueofthemeansofproductionischangedbythefactthattheyfunctionascapital-values，orthenatureandmagnitudeofastraightlinearechangedbythefactthatitservesasthebaseofsometriangleorasthediameterofsomeellipse。Thevalueoflabour-powerremainsquiteasindependentlydefiniteasthatofthosemeansofproduction。

Thisportionofthevalueofacommodityneitherconsistsofrevenueasanindependentfactorconstitutingthisvalue-partnordoesitresolveitselfintorevenue。Whilethisnewvalueconstantlyreproducedbythelabourerconstitutesasourceofrevenueforhim，hisrevenueconverselyisnotaconstituentofthenewvalueproducedbyhim。Themagnitudeofthesharepaidtohimofthenewvaluecreatedbyhimdeterminesthevalue-magnitudeofhisrevenue，notviceversa。Thefactthatthispartofthenewlycreatedvalueformsarevenueforhim，indicatesmerelywhatbecomesofit，showsthecharacterofitsapplication，andhasnomoretodowithitsformationthanwiththatofanyothervalue。Ifmyreceiptsaretenshillingsaweekthatchangesnothinginthenatureofthevalueofthetenshillings，norinthemagnitudeoftheirvalue。Asinthecaseofeveryothercommoditysointhatoflabour-poweritsvalueisdeterminedbytheamountofthislabourisnecessaryforitsreproduction；thattheamountofthislabourisdeterminedbythevalueofthelabourer’snecessarymeansofsubsistence，henceisequaltothelabourrequiredforthereproductionoftheveryconditionsofhislife——thatispeculiarforthiscommodity(labour-power)，butnomorepeculiarthanthefactthatthevalueoflabouringcattleisdeterminedbythevalueofthemeansofsubsistencenecessaryforitsmaintenance，i。e。，bytheamountofhumanlabournecessarytoproducethesemeansofsubsistence。

Butitisthiscategoryof”revenue”whichistoblameforalltheharmfulconfusioninAdamSmith。Thevariouskindsofrevenueformwithhimthe”componentparts”oftheannuallyproduced，newlycreatedcommodity-value，while，viceversa，thetwopartsintowhichthiscommodity-valueresolvesitselfforthecapitalist——theequivalentofhisvariablecapitaladvancedintheformofmoneywhenpurchasinglabour，andtheotherportionofthevalue，thesurplus-value，whichlikewisebelongstohimbutdidnotcosthimanything——formsourcesofrevenue。Theequivalentofthevariablecapitalisadvancedagainforlabour-powerandtothatextentformsarevenueforthelabourerintheshapeofwages；sincetheotherportion，thesurplus-value，doesnotservetoreplaceanyadvanceofcapitalforthecapitalist，itmaybespentbyhiminarticlesofconsumption(bothnecessitiesandluxuries)orconsumedasrevenueinsteadofformingcapital-valueofanydescription。Commodity-valueitselfisthepreliminaryconditionofthisrevenueanditscomponentpartsdiffer，fromthepointofviewofthecapitalist，onlytotheextentthattheyconstituteeitheranequivalentforanexcessoverthevariablecapital-valueadvancedbyhim。Bothofthemconsistofnothingbutlabour-powerexpendedduringtheproductionofcommodities，renderedfluentinlabour。Theyconsistofoutlay，notincomeorrevenue——ofoutlayoflabour。

Inaccordancewiththequidproquo，bywhichtherevenuebecomesthesourceofcommodity-valueinsteadofthecommodity-valuebeingthesourceofrevenue，thevalueofcommoditiesnewhastheappearanceofbeing”composed”ofthevariouskindsofrevenue；theserevenuesaredeterminedindependentlyofoneanother，andthetotalvalueofcommoditiesisdeterminedbytheadditionofthevaluesoftheserevenues。Butnowthequestionishowtodeterminethevalueofeachoftheserevenueswhicharesupposedtoformcommodity-value。Inthecaseofwagesitcanbedone，forwagesrepresentthevalueoftheircommodity，labour-power，andthisvalueisdeterminable(thesameasthatofallothercommodities)bythelabourrequiredforthereproductionofthiscommodity。Butsurplus-value，or，asAdamSmithhasit，itstwoforms，profitandrent，howaretheydetermined？

HereAdamSmithhasbutemptyphrasestooffer。Atonetimeherepresentswagesandsurplus-value(orwagesandprofit)ascomponentpartsofthevalue，orprice，ofcommodities；atanother，andalmostinthesamebreath，aspartsintowhichthepriceofcommodities”resolvesit-self”；butthismeansonthecontrarythatthecommodity-valueisthethinggivenfirstandthatdifferentpartsofthisgivenvaluefallintheformofdifferentrevenuestotheshareofdifferentpersonsengagedintheproductiveprocess。

Thisisbynomeansidenticalwiththenotionthatvalueis”composed”

ofthesethree”componentparts。”IfIdeterminethelengthsofthreedifferentstraightlinesindependently，andthenformoutofthesethreelinesas”componentparts”afourthstraightlineequaltotheirsum，itisbynomeansthesameprocedureaswhenIhavesomegivenstraightlinebeforemeandforsomepurposedivideit，”resolve”it，sotosay，intothreedifferentparts。Inthefirstcase，thelengthofthelinechangesthroughoutwiththelengthsofthethreelineswhosesumitis；inthesecondcase，thelengthsofthethreepartsofthelinearefromtheoutsetlimitedbythefactthattheyarepartsofalineofgivenlength。

Asamatteroffact，ifweadheretothatpartofSmith’sexpositionwhichiscorrect，namely，thatthevaluenewlycreatedbytheannuallabourandcontainedintheannualsocialcommodity-product(thesameasineveryindividualcommodity，oreverydaily，weekly，etc。，product)

isequaltothevalueofthevariablecapitaladvanced(i。e。，tothevalue-partintendedtopurchasenewlabour-power)plusthesurplus-valuewhichthecapitalistcanrealiseinmeansofhisindividualconsumption——simplereproductionbeingassumedandothercircumstancesremainingthesame；

ifwefurthermorekeepinmindthatAdamSmithlumpstogetherlabour，sofarasitcreatesvalueandisanexpenditureoflabour-power，andlabour，sofarasitcreatesusevalue，i。e。，isexpendedinauseful，appropriatemanner——thentheentireconceptionamountstothis:Thevalueofeverycommodityistheproductoflabour；hencethisisalsotrueofthevalueoftheproductoftheannuallabourorofthevalueofsociety’sannualcommodity-product。Butsincealllabourresolvesitself1)intonecessarylabour-time，inwhichthelabourerreproducesmerelyanequivalentforthecapitaladvancedinthepurchaseofhislabour-power，and2)intosurplus-labour，bywhichhesuppliesthecapitalistwithavalueforwhichthelatterdoesnotgiveanyequivalent，hencesurplus-value，itfollowsthatallcommodityvaluecanresolveitselfonlyintothesetwocomponentparts，sothatultimatelyitformsarevenuefortheworking-classintheformofwages，andforthecapitalistclassintheformofsurplus-value。Asfortheconstantcapital-value，i。e。，thevalueofthemeansofproductionconsumedinthecreationoftheannualproduct，itcannotbeexplainedhowthisvaluegetsintothatofthenewproduct(exceptforthephrasethatthecapitalistchargesthebuyerwithitinthesaleofhisgoods)，butultimately，sincethemeansofproductionarethemselvesproductsoflabour，thisportionofvaluecan，inturn，consistonlyofanequivalentofthevariablecapitalandofsurplus-value，ofaproductofnecessarylabourandofsurplus-labour。

Thefactthatthevaluesofthesemeansofproductionfunctioninthehandsoftheiremployersascapital-valuesdoesnotpreventthemfromhaving”originally，”inthehandsofothersifwegotothebottomofthematter——eventhoughatsomeprevioustime——resolvedthemselvesintothesametwoportionsofvalue，henceintotwodifferentsourcesofrevenue。

Onepointhereiniscorrect:thatthematterpresentsitselfdifferentlyinthemovementofsocialcapital，i。e。，ofthetotalityofindividualcapitals，fromthewayitpresentsitselfforeachindividualcapitalconsideredseparately，hencefromthestandpointofeachindividualcapitalist。Forthelatterthevalueofcommoditiesresolvesitselfinto1)aconstantelement(afourthone，asAdamSmithsays)，and2)thesumofwagesandsurplus-value，orwages，profitandrent。ButfromthepointofviewofsocietythefourthelementofAdamSmith，theconstantcapital-value，disappears。5。RecapitulationTheabsurdformulathatthethreerevenues，wages，profitandrent，formthethree”componentparts”ofthevalueofcommoditiesoriginateswithAdamSmithfromthemoreplausibleideathatthevalueofcommodities”resolvesitself”intothesethreecomponentparts。Thisislikewiseincorrect，evengrantedthatthevalueofcommoditiesisdivisibleonlyintoanequivalentoftheconsumedlabour-powerandthesurplus-valuecreatedbyit。Butthemistakerestsheretooonadeeper，atruefoundation。Capitalistproductionisbasedonthefactthattheproductivelabourersellshisownlabour-power，ashiscommodity，tothecapitalist，inwhosehandsitthenfunctionsmerelyasanelementofhisproductivecapital。Thistransaction，whichpertainstocirculation——thesaleandpurchaseoflabour-power——notonlyinauguratestheprocessofproduction，butalsodeterminesimplicitlyitsspecificcharacter。Theproductionofause-value，andeventhatofacommodity(forthiscanbecarriedonalsobyindependentproductivelabourers)，ishereonlyameansofproducingabsoluteandrelativesurplus-valueforacapitalist。Forthisreasonwehaveseenintheanalysisoftheprocessofproductionthattheproductionofabsoluteandrelativesurplus-valuedetermines1)thedurationofthedailylabour-processand2)theentiresocialandtechnicalconfigurationofthecapitalistprocessofproduction。

Withinthisprocessthereisrealisedthedistinctionbetweenthemereconservationofvalue(oftheconstantcapital-value)，theactualreproductionofadvancedvalue(equivalentoflabour-power)，andtheproductionofsurplus-value，i。e。，ofvalueforwhichthecapitalisthasneitheradvancedanequivalentpreviouslynorwilladvanceonepostfestum。

Theappropriationofsurplus-value——avalueinexcessoftheequivalentofthevalueadvancedbythecapitalist——althoughinauguratedbythepurchaseandsaleoflabour-power，isanactperformedwithintheprocessofproductionitself，andformsanessentialelementofit。

Theintroductoryact，whichconstitutesanactofcirculation——thepurchaseandsaleoflabour-power——itselfrestsonadistributionoftheelementsofproductionwhichprecededandpresupposedthedistributionofthesocialproducts，namelyontheseparationoflabour-powerasacommodityofthelabourerfromthemeansofproductionasthepropertyofnon-labourers。

Howeverthisappropriationofsurplus-value，orthisseparationoftheproductionofvalueintoareproductionofadvancedvalueandaproductionofnewvalue(surplus-value)whichdoesnotreplaceanyequivalent，doesnotalterinanywaythesubstanceofvalueitselforthenatureoftheproductionofvalue。Thesubstanceofvalueisandremainsnothingbutexpendedlabour-power——labourindependentofthespecific，usefulcharacterofthisexpenditure。Aserfforinstanceexpendshislabour-powerforsixdays，laboursforsixdays，andthefactofthisexpenditureassuchisnotalteredbythecircumstancethathemaybeworkingthreedaysforhimself，onhisownfield，andthreedaysforhislord，onthefieldofthelatter。

Bothhisvoluntarylabourforhimselfandhisforcedlabourforhislordareequallylabour；sofarasthislabourisconsideredwithreferencetothevalues，ortotheusefularticlescreatedbyit，thereisnodifferenceinhissixdaysoflabour。Thedifferencerefersmerelytothedifferentconditionsbywhichtheexpenditureofhislabour-powerduringbothhalvesofhislabour-timeofsixdaysiscalledforth。Thesameappliestothenecessaryandsurplus-labourofthewage-labourer。

Theprocessofproductionexpiresinthecommodity。Thefactthatlabour-powerwasexpendedinitsfabricationnowappearsasamaterialpropertyofthecommodity，asthepropertyofpossessingvalue。Themagnitudeofthisvalueismeasuredbytheamountoflabourexpended；thevalueofacommodityresolvesitselfintonothingelsebesidesandisnotcomposedofanythingelse。IfIhavedrawnastraightlineofdefinitelength，Ihave，tostartwith，”produced”astraightline(true，onlysymbolically，asIknowbeforehand)

byresorttotheartofdrawing，whichispractisedinaccordancewithcertainrules(laws)independentofmyself。IfIdividethislineintothreesections(whichmaycorrespondtoacertainproblem)，everyoneofthesesectionsremainsastraightline，andtheentireline，whosesectionstheyare，doesnotresolveitselfbythisdivisionintoanythingdifferentfromastraightline，forinstanceintosomekindofcurve。NeithercanIdividealineofagivenlengthinsuchawaythatthesumofitspartsisgreaterthantheundividedlineitself；hencethelengthoftheundividedlineisnotdeterminedbyanyarbitrarilyfixedlengthsofitsparts。Viceversa，therelativelengthsofthesepartsarelimitedfromtheoutsetbythesizeofthelinewhosepartstheyare。

Inthisacommodityproducedbyacapitalistdoesnotdiffereinanywayfromthatproducedbyanindependentlabourerorbycommunitiesofworking-peopleorbyslaves。Butinthepresentcasetheentireproductoflabour，aswellasitsentirevalue，belongstothecapitalist。Likeeveryotherproducerhehastoconverthiscommoditybysaleintomoneybeforehecanmanipulateitfurther；hemustconvertitintotheformoftheuniversalequivalent。

Letusexaminethecommodity-productbeforeitisconvertedintomoney。

Itbelongswhollytothecapitalist。Ontheotherhandasausefulproductoflabour，ause-value，itisentirelytheproductofapastlabour-process。

Notsoitsvalue。Oneportionofthisvalueisbutthevalueofthemeansofproductionexpendedintheproductionofthiscommodityandre-appearinginanewform。Thisvaluehasnotbeenproducedduringtheprocessofproductionofthiscommodity，forthemeansofproductionpossessedthisvaluebeforetheprocessofproduction，independentlyofit；theyenteredintothisprocessasthevehiclesofthisvalue；itisonlyitsformofappearancethathasbeenrenewedandaltered。Thisportionofthevalueofthecommodityconstitutesforthecapitalistanequivalentoftheportionoftheconstantcapital-valueadvancedandconsumedintheproductionofthecommodity。

Itexistedpreviouslyintheformofmeansofproduction；itexistsnowasacomponentpartofthevalueofthenewlyproducedcommodity。Assoonasthiscommodityhasbeenturnedintomoney，thevaluenowexistingintheformofmoneymustbereconvertedintomeansofproduction，intoitsoriginalformdeterminedbytheprocessofproductionanditsfunctioninit。Nothingisalteredinthecharacterofthevalueofacommoditybythefunctionofthisvalueascapital。

Asecondportionofthevalueofacommodityisthevalueofthelabour-powerwhichthewage-workersellstothecapitalist。Itisdetermined，thesameasthatofthemeansofproduction，independentlyoftheprocessofproductionintowhichlabour-poweristoenter，anditisfixedinanactofcirculation，thepurchaseandsaleoflabour-power，beforethelatterenterstheprocessofproduction。Bymeansofhisfunction——theexpenditureoflabour-power——thewage-labourerproducesacommodity-valueequaltothevaluewhichthecapitalisthastopayhimfortheuseofhislabour-power。Hegivesthisvaluetothecapitalistintheformofacommodityandispaidforitbyhiminmoney。Thatthisportionofthecommodity-valueisforthecapitalistbutanequivalentforthevariablecapitalwhichhehastoadvanceinwagesdoesnotalterinanywaythefactthatitisacommodity-valuenewlycreatedduringtheprocessofproductionandconsistingofnothingbutwhatsurplus-valueconsistsof，namely，pastexpenditureoflabour-power。

Noristhistruthaffectedbythefactthatthevalueofthelabour-powerpaidbythecapitalisttothelabourerintheformofwagesandassumestheformofarevenueforthelabourer，andthatnotonlylabour-poweriscontinuallyreproducedtherebybutalsotheclassofwage-labourersassuch，andthusthebasisoftheentirecapitalistproduction。

However，thesumofthesetwoportionsofvaluedoesnotcomprisethewholeofcommodity-value。Thereremainsanexcessoverbothofthem——

thesurplus-value。This，liketheportionofvaluewhichreplacesthevariablecapitaladvancedinwages，isavaluenewlycreatedbythelabourerduringtheprocessofproduction——congealedlabour。Butitdoesnotcosttheowneroftheentireproduct，thecapitalist，anything。Thiscircumstanceactuallypermitsthecapitalisttoconsumethesurplus-valueentirelyasrevenue，unlesshehastosurrenderpartsofittootherparticipants——

suchasground-renttothelandlord，inwhichcasesuchportionsconstitutearevenueofsuchthirdpersons。Thissamecircumstancewasthecompellingmotivethatinducedourcapitalisttoengageatallinthemanufactureofcommodities。Butneitherhisoriginalbenevolentintentionofsnatchingsurplus-value，noritssubsequentexpenditureasrevenuebyhimorothersaffectsthesurplus-valueassuch。Theydonotimpairthefactthatitiscongealedunpaidlabour，northemagnitudeofthissurplus-value，whichisdeterminedbyentirelydifferentconditions。

However，ifAdamSmithwantedtooccupyhimself，ashedid，withtheroleofthevariouspartsofthisvalueinthetotalprocessofreproduction，evenwhilehewasinvestigatingthevalueofcommodities，itwouldbeevidentthatwhilesomeparticularpartsfunctionasrevenue，othersfunctionjustascontinuallyascapital——andconsequently，accordingtohislogic，shouldhavebeendesignatedasconstituentpartsofthecommodity-value，orpartsintowhichthisvalueresolvesitself。

AdamSmithidentifiestheproductionofcommoditiesingeneralwithcapitalistcommodityproduction；themeansofproductionaretohimfromtheoutset”capital，”labourisfromtheoutsetwage-labour，andtherefore”thenumberofusefulandproductivelabourers……iseverywhereinproportiontothequantityofcapitalstockwhichemployedinsettingthemtowork。”

(Introduction，p。12。)Inshort，thevariousfactorsofthelabour-process——bothobjectiveandpersonal——appearfromthefirstwiththemaskscharacteristicoftheperiodofcapitalistproduction。Theanalysisofthevalueofcommoditiesthereforecoincidesdirectlywiththeconsiderationoftheextenttowhichthisvalueisontheonehandamereequivalentofcapitallaidout，andontheother，towhatextentitforms”free”value，valuenotreplacinganyadvancedcapital-value，orsurplus-value。Comparedfromthispointofview，partsofcommodity-valuethustransformthemselvesimperceptiblyintoitsindependent”componentparts，”andfinallyintothe”sourcesofallvalue。”Afurtherconclusionisthatcommodity-valueiscomposedof，or”resolvesitself”into，revenuesofvariouskinds，sothattherevenuesdonotconsistofcommodity-valuesbutthecommodity-valueconsistsof”revenues。”Aslittle，however，asthenatureofacommodity-valueassuch，orofmoneyassuch，ischangedthroughtheirfunctioningascapital-value，justsolittleisthenatureofacommodity-valueascapital-value，justsolittleisthenatureofacommodity-valuechangedonaccountofitsfunctioninglaterasarevenueforsomeparticularperson。ThecommoditywithwhichAdamSmithhastodealisfromtheoutsetcommodity-capital(whichcomprisessurplus-valueinadditiontothecapital-valueconsumedintheproductionofthecommodity)；itisthereforeacommodityproducedcapitalistically，theresultofthecapitalistprocessofproduction。Itwouldhavebeennecessary，then，toanalysefirstthisprocess，andalsotheprocessofself-expansionandoftheformationofvalue，whichitincludes。

Sincethisprocessisinitsturnpremisedbythecirculationofcommodities，itsdescriptionrequiresalsoapreliminaryandindependentanalysisofthecommodity。However，evenwhereAdamSmithattimeshits”esoterically”

uponthecorrectthinghealwaystakesintoconsiderationtheformationofvalueonlyasincidentaltotheanalysisofcommodities，i。e。，totheanalysisofcommodity-capital。III。LATERECONOMISTS[41]

RicardoreproducesthetheoryofAdamSmithalmostverbatim:”Itmustbeunderstoodthatalltheproductionsofacountryareconsumed；butitmakesthegreatestdifferenceimaginablewhethertheyareconsumedbythosewhoreproduced，orbythosewhodonotreproduceanothervalue。Whenwesaythatrevenueissaved，andaddedtocapital，whatwemeanis，thattheportionofrevenue，sosaidtobeaddedtothecapital，isconsumedbyproductiveinsteadofunproductivelabourers。”(Principles，p。

163。)

InfactRicardofullyacceptedthetheoryofAdamSmithconcerningtheresolutionofthepriceofcommoditiesintowagesandsurplus-value(orvariablecapitalandsurplus-value)。Thepointsofdisputewithhimare1)thecomponentpartsofthesurplus-value:heeliminatesground-rentasanessentialelementofit；2)Ricardosplitsthepriceofthecommodityintothesecomponentparts。Themagnitudeofvalueis，then，theprius。Thesumofcomponentpartsisassumedasagivenmagnitude，itisthestartingpoint，whileAdamSmithfrequentlyactstothecontrary，againsthisownbetterjudgement，bysubsequentlydeducingthemagnitudeofvalueofthecommoditythroughthesumofthecomponentparts。

RamsaymakesthefollowingremarkagainstRicardo:”……Heseemsalwaystoconsiderthewholeproduceasdividedbetweenwagesandprofits，forgettingthepartnecessaryforreplacingfixedcapital。”(AnEssayontheDistributionofWealth，Edinburgh，1836，p。174。)ByfixedcapitalRamsaymeansthesamethingthatImeanbyconstantcapital:”Fixedcapitalexistsinaforminwhich，thoughassistingtoraisethefuturecommodity，itdoesnotmaintainlabourers。”(Ibid。，p。59。)

AdamSmithopposedthenecessaryconclusionofhisresolutionofthevalueofcommodities，andthereforealsoofthevalueofthesocialannualproductintowagesandsurplus-valueandthereforeintomererevenue——

theconclusionthatinthiseventtheentireannualproductmightbeconsumed。

Itisnevertheoriginalthinkersthatdrawtheabsurdconclusions。TheyleavethattotheSaysandMacCullochs。

Say，indeed，settlesthemattereasyenough。Thatwhichisanadvanceofcapitalforone，isorwasarevenueandnetproductforanother。Thedifferencebetweenthegrossandthenetproductispurelysubjective，and”thusthetotalvalueofallproducts，hasbeendistributedinsocietyasrevenue。”(Say，Traitè；d’EconomiePolitique，1817，II，p。64。)”Thetotalvalueofeveryproductiscomposedoftheprofitsofthelandowners，thecapitalists，andthosewhoplyindustrialtrades”[wagesfigurehereasprofitsdesindustrieux！]”whohavecontributedtowardsitsproduction。Thismakestherevenueofsocietyequaltothegrossvalueproduced，notequaltothenetproductsofthesoil，aswasbelievedbythesectoftheeconomists”[thephysiocrats]。(P。63。)

Amongothers，ProudhonhasappropriatedthisdiscoveryofSay。

Storch，wholikewiseacceptsAdamSmith’sdoctrineinprinciple，findshoweverthatSay’spracticalapplicationofitdoesnotholdwater。”Ifitisadmittedthattherevenueofanationisequaltoitsgrossproduct，i。e。，thatnocapital”[itshouldsay:noconstantcapital]”istobededucted，thenitmustalsobeadmittedthatthisnationmayconsumeunproductivelytheentirevalueofitsannualproductwithouttheleastdetrimenttoitsfuturerevenue……Theproductswhichrepresentthe”[constant]”capitalofanationarenotconsumable。”(Storch，Considerationssurlanaturedurevenunational，Paris，1824，pp。147，150。)

However，StorchforgottotellushowtheexistenceofthisconstantportionofcapitalharmoniseswiththeSmithiananalysisofpricesacceptedbyhim，accordingtowhichthevalueofcommoditiescontainsonlywagesandsurplus-value，butnopartofanyconstantcapital。HerealisesonlythroughSaythatthisanalysisofpricesleadstoabsurdresults，andhisownlastwordonthesubjectis”thatitisimpossibletoresolvethenecessarypriceintoitssimplestelements。”(Coursd’EconomiePolitique，Petersburg，1815，II，p。141。)

Sismondi，whooccupieshimselfparticularlywiththerelationofcapitaltorevenue，andinactualfactmakesthepeculiarformulationofthisrelationthedifferentiaspecificaofhisNouveauxPrincipes，didnotsayonescientificword，didnotcontributeoneiotatotheclarificationoftheproblem。

Barton，Ramsay，andCherbuliezattempttogobeyondtheformulationofAdamSmith。Theyfounderbecausetheyposetheproblemone-sidedlyfromtheoutsetbyfailingtomakeclearthedistinctionbetweenconstantandvariablecapital-valueandbetweenfixedandcirculatingcapital。

JohnStuartMilllikewisereproduces，withhisusualpomposity，thedoctrinehandeddownbyAdamSmithtohisfollowers。Asaresult，theSmithianconfusionofthoughtpersiststothishourandhisdogmaisoneoftheorthodoxarticlesoffaithofPoliticalEconomy。

NOTES

[35]BeginningofManuscriptVIII——F。

E。

[36]Kapital，BandI，2。Ausgabe，S。

612，Note32。[Eng。ed。，Moscow，1954，p。591，Note1。]

[37]Somephysiocratshadpavedthewayforhimevenhere，especiallyTurgot。ThelatterusesthetermcapitalforavancesmorefrequentlythanQuesnayandtheotherphysiocratsandidentifiesstillmoretheavances，orcapitaux，ofthemanufacturerswiththoseofthefarmers。Forinstance:”Likethese(theentrepreneurs-manufacturers)，they(lesfermiers，i。e。，thecapitalistfarmers)mustreceiveinadditiontoreturningcapitals，etc。”(Turgot，Oeuvres，Daireedition，Paris，1844，Vol。I，p。40。)

[38]Inorderthatthereadermaynotmisconstruethemeaningofthephrase”thepriceofthefargreaterpartofcommodities，”

thefollowingshowshowAdamSmithhimselfexplainsthisterm。Forinstance，norententersintothepriceofseafish，onlywagesandprofit，onlywagesenterintothepriceofScotchpebbles。Hesays:”InsomepartsofScotlandafewpoorpeoplemakeatradeofgathering，alongthesea-shore，thoselittlevariegatedstonescommonlyknownbythenameofScotchpebbles。

Thepricewhichispaidtothembythestone-cutterisaltogetherthewagesoftheirlabour；neitherrentnorprofitmakesanypartofit。”

[39]Ireproducethissentenceverbatimfromthemanuscript，althoughitseemstocontradict，initspresentcontext，bothwhatprecedesandimmediatelyfollow。ThisapparentcontradictionisresolvedfurtherdowninNo。4:CapitalandRevenueinAdamSmith——F。E。

[40]WeignorethefactthatAdamSmithwashereparticularlyunfortunateinthechoiceofhisexample。Thevalueofthecornresolvesitselfintowages，profit，andrentonlybecausethefoodconsumedbythelabouringcattleisdepictedaswagesofthelabouringcattle，andthelabouringcattleaswage-labourers，sothatthewage-laboureronhispartisalsodepictedaslabouringcattle。(AddedfromtheManuscriptII——F。E。)

[41]Fromheretotheendofthechapter，asupplementfromManuscriptII——F。E。