Capital II, Chapter 15 - Part 10

2) The Working Period Greater than the Period of Circulation 

Here the working period and turnover period overlap. For example, if the working period is six weeks, and the turnover-time is nine weeks, the working period will be weeks, 1 - 6, 7 -12, 13-18 and so on, whilst the turnover periods will be weeks 1 - 9, 10 – 18, 19 – 27 and so on. In order to make up the difference, additional Capital 2 has to be employed. So, we could treat these again as though they were two separate capitals. Capital 1 has a working period of 6 weeks, and then lies fallow for three weeks when it circulates. During those three weeks, Capital 2 operates, but then itself lies fallow for the six weeks when Capital 1 is producing.

This is set out in the next tables that Marx provides.

Table II
CAPITAL I, £600
Periods of Turnover	Working Periods	Advance	Periods of Circulation
I. 1st - 9th week	1st - 6th week	£600	7th - 9th week
II. 10th - 18th "	10th - 15th "	£600	16th - 18th"
III. 19Th - 27th "	19th - 24th "	£600	25th - 27th "
IV. 28th - 36th "	28th - 33rd "	£600	34th - 36th "
V. 37th - 45th "	37th - 42nd "	£600	43rd - 45th "
VI. 46th - [54th] "	46th - 51st "	£600	[52nd - 54th] "

ADDITIONAL CAPITAL II, £300
Periods of Turnover	Working Periods	Advance	Periods of Circulation
I. 7th - 15th week	7th - 9th week	£300	10th - 15th week
II. 16th - 24th "	16th - 18th "	£300	19th - 24th "
III. 25Th - 33rd "	25th - 27th "	£300	28th - 33rd "
IV. 34th - 42nd "	34th - 36th "	£300	37th - 42nd "
V. 43rd - 51st "	43rd - 45th "	£300	46th - 51st "

But, as Marx says, this is, in reality, a false picture because here Capital 2 has no real separate existence from Capital 1. The working period is six weeks, but Capital 2 only has sufficient capital to operate for three weeks, on the basis of the scale of production assumed. Its period of circulation is listed as being for 6 weeks, even though it is only 3 weeks, the same as that for Capital 1. The additional 3 weeks, is actually time when it is forced to lie fallow, for lack of capital to advance.

This is the same situation as that described in the first example at the beginning of the chapter. In reality, whilst the additional capital allows production to continue, during the circulation period, of Capital 1, it is not sufficient to continue production for the whole working period.

When Capital 1 completes its turnover, it realises sufficient value to enable the working period of Capital 2, to be completed, and leaves sufficient capital free to commence a new working period. The capital free to do so, is equal to the size of Capital 2. That is the same as previously described here:

Working Period	Weeks	Circulation Time	Financed By
1	1 - 6	7 - 9	£600 Capital
2	7 - 12	13 - 15	£300 Capital + £300 (sale week 9)
3	13 -18	19 - 21	£300 (sale week 9) + £300 (sale week 15)
4	19 - 24	25 - 27	£300 (sale week 15) + £300 (sale week 21)
5	25 - 30	31 - 33	£300 (sale week 21) + £300 (sale week 27)
6	31 - 36	37 - 39	£300 (sale week 27) + £300 (sale week 33)
7	37 - 42	43 - 45	£300 (week 33) + £300 (sale week 39)
8	43 - 48	49 - 51	£300 (week 39) + £300 (sale week 45)
9	49 - 54	55 - 57	£300 (week 45) + £300 (sale week 51)

This demonstrates two of the propositions alluded to. Firstly, it demonstrates that Capital is returned every 6 weeks, equal to the working period, not the turnover period, and secondly, that the amount of Capital freed up in each of these returns is equal to the additional Capital 2, required to cover the circulation period – here £300.

£600 of Capital 1, is returned at the end of its turnover period – week 9. £300 of this supplements the £300 of Capital 2 that starts operation in week 7, so that production can continue for six weeks up to the end of week 12. The other £300 is freed up, and starts the second working period of Capital 1, which begins in week 13. The £300 of Capital 1, that supplemented Capital 2, is returned alongside the £300 of Capital 2, when its turnover is completed at the end of week 15.

Consequently, £600 of capital is turned over every six weeks after week 9, i.e. weeks 9, 15, 21, 27, 33, 39, 45, 51. That is 8 turnovers. But, at week 51, there is also the output of weeks 49- 51. That is worth £300, but has completed only ⅓ of its turnover. So, in 51 weeks, £4,900 has been turned over – 8 x £600 = £4,800 + ⅓ x £300 = £100 = £4,900.

The aggregate capital is £900 (£600 Capital 1 plus £300 Capital 2), so the number of turnovers of the aggregate capital is £4,900 / £900 = 5 4/9 times.

Looking at the total output it is £5,100, i.e. 51 weeks x £100. The difference in this figure, and the value of the turned over capital - £200 – is equal to the output in weeks 49 - 51, which had not completed its turnover. Using the previous formula the number of working periods, amounts to £5,100/£900 = 5⅔.

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