## Wednesday, 26 March 2014

### Capital II, Chapter 15 - Part 11

Marx then shows that these rules apply where a different length of working period applies. He describes the case where the working period is 5 weeks, and the circulation period 4 weeks, and one where it is 7 weeks, and the circulation period 2 weeks.

In the first case, £400 of Capital 2, makes up weeks 6-9, when Capital 1 is circulating. At the end of week 9, £500 returns to Capital 1. Capital 2 only has sufficient capital to cover 4 weeks of a 5 week working period. So, £100 of the capital returned to Capital 1, goes to supplement Capital 2, to cover the fifth week. That leaves £400 free for Capital 1, to commence its own next working period. £400 continues to be set free every 5 weeks.

In the second case, £700 is advanced by Capital 1, and £200 by Capital 2.

“In that case the first period of turnover lasts from the 1st to the 9th week; its first working period from the 1st to the 7th week, with an advance of £700, its first circulation period from the 8th to the 9th week. End of the 9th week, £700 flow back in money-form.

The second period of turnover, from the 8th to the 16th week, contains the second working period of the 8th to the 14th week. The requirements of the 8th and 9th weeks of this period are covered by capital II. End of the 9th week, the above £700 return. Up to the close of this working period (10th-14th week), £500 of this sum are used up; £200 remain free for the next working period. The second circulation period lasts from the 15th to the 16th week. End of the 16th week £700 return once more. From now on, the same thing is repeated in every working period. The need for capital during the first two weeks is covered by the £200 set free at the close of the preceding working period; at the close of the second week £700 return; but only 5 weeks remain of the working period, so that it can consume only £500; therefore £200 always remain free for the next working period.

We find, then, that in the given case, where the working period has been assumed to be greater than the circulation period, a money-capital will at all events have been set free at the close of each working period, which is of the same magnitude as capital II advanced for the circulation period. In our three illustrations capital II was £300 in the first, £400 in the second, and £200 in third. Accordingly, the capital set free at the close of each working period was £300, £400 and £200 respectively.” (p 278-9)