## Friday, 28 March 2014

### Capital II, Chapter 15 - Part 13

Marx then details another example where the working period is 4 weeks and the circulation period 5 weeks. This breaks down again into three capitals; Capital 1 and 2 £400 each and Capital 3 £100.

These are detailed in the following tables.
 CAPITAL I Periods of Turnover Working Periods Periods of Circulation I. 1st - 9th week 1st - 4th week 5th - 9th week II. 10th - 18th 10th - 13th 14th - 18th III. 19Th - 27th 19th - 22nd 23rd - 27th IV. 28th - 36th 28th - 31st 32nd - 36th V 37th - 45th 37th - 40th 41st - 45th VI. 46th - 54th 46th - 49th 50th - 54th

 CAPITAL II Periods of Turnover Working Periods Periods of Circulation I. 5th - 13th week 5th - 8th week 9th - 13th week II. 14th - 22nd 14th - 17th 18th - 22nd III. 23Rd - 31st 23rd - 26th 27th - 31st IV. 32nd - 40th 32nd - 35th 36th - 40th V. 41st - 49th 41st - 44th 45th - 49th VI. 50th - 58th 50th - 53rd 54th - 58th

 CAPITAL III Periods of Turnover Working Periods Periods of Circulation I. 9th - 17th week 9th 10th - 17th week II. 18th - 26th 18th 19th - 26th III. 27Th - 35th 27th 28th - 35th IV. 36th - 44th 36th 37th - 44th V. 45th - 53rd 45th 46th - 53rd

I have extended them to a full year as opposed to the 3 turnovers that Marx sets out. I've also adjusted the labelling of week numbers to conform with Marx’s previous method for consistency.

Once again, the total output is 51 weeks x £100 = £5,100, and the aggregate capital is £900. That gives 5⅔ working periods.

Looking at the capital turned over, that is

Capital 1 £400 x 5⅔ = £2266.67

Capital 2 £400 x 5 2/9= £2088.89

Capital 3 £100 x 4 7/9 = £477.78

Total = £900 x 5.37 = £4833.34

Here, the three capitals do overlap. Capital 3 has no independent existence, because its £100 is not enough to cover a working period of 4 weeks. An amount of Capital = £300 has to be added to Capital 3 to complete the working period. Having done so it sets free £100 from Capital 1, equal to the value of Capital 3. That commences the next working period.

“In all cases investigated it was assumed that both the working period and the circulation period remain the same throughout the year in any of the businesses here examined. This assumption was necessary if we wished to ascertain the influence of the time of circulation on the turnover and advancement of capital. That in reality this assumption is not so unconditionally valid, and that it frequently is not valid at all does not alter the case in the least.” (p 282)

The capital analysed here was only the working capital, rather than the fixed capital, and for good reason. As discussed previously, a portion of fixed capital is transferred as wear and tear, to the end product, throughout the production process, and returned from circulation, as is that of the circulating capital. However, unlike the circulating capital, the fixed capital is not dependent upon the continual return. The circulating capital can only be reproduced when the capital is returned. But, fixed capital continues to function even as its value is reduced, and only needs to be reproduced when it is worn out.

“The difference is merely this: In proportion to the varying length of a single working period of each period of turnover of the circulating capital, the fixed capital gives up a greater or smaller part of its original value to the product of that working period, and proportionally to the duration of the circulation time of each period of turnover this value-part of the fixed capital given up to the product returns quicker or slower in money-form. The nature of the subject we are discussing in this section — the turnover of the circulating portion of productive capital — derives from the very nature of this portion.” (p 282-3)