Capital II, Chapter 20 - Part 44

b) Here 2(i) has £200 in money, having already sold all its commodities (the total commodity-capital of Department 2 is £2,000, so we can assume it is divided £1,000 each to section (i) and (ii)). In that case, 2(i) may have sold, for example, £800 to Department 1 workers, and £200 to Department 1 capitalists. 2(ii) may have sold £200 to Department 1 workers, leaving £800 to sell to Department 1 capitalists.

(NB.  Wherever its stated that x amount of circulating or fixed capital was bought or sold, here, this is, in fact, incorrect.  In examining interest-bearing capital, in Capital III, it will be shown that it is only that form of "capital", that is bought and sold as a commodity, and its price is the rate of interest. The use of the term here is to be taken only as a more convenient means of expressing the more cumbersome, but accurate description that what is being bought and sold are the commodities that comprise the commodity-capital, the circulating-capital, and fixed capital.)

So, 2(i) will have bought £800 of circulating capital, equal to its exchange with Department 1(v). 2(ii) will have bought £200 of circulating capital equal to its exchange with 1(v). 2(i) has advanced £200 for fixed capital. It has sold its remaining £200 of commodities to 1(s), leaving it with £200 in money.

Now, 2(ii) has £800 of its commodity-capital left to sell. It does this by exchanging it with 1(s) for circulating capital of that amount.

An alternative scenario here would be that 2(i) has sold £1,000 of its commodity-capital to 1(v) having bought £800 of circulating constant capital, and thereby leaving it with £200 in money. 2(ii) has bought £200 of circulating capital, and sold £200 of consumer goods to 1(s), leaving it with £800 of consumer goods to sell. 2(i) then uses its £200 in money to buy fixed capital. This £200 flows back to Department 2, but can only flow back to 2(ii) because 2(i) has sold all its commodity-capital. 2(ii) then exchanges its remaining £800 of consumer goods with 1(s) made up of £600 of circulating capital, and plus the £200 1(s) received from 2(i) for fixed capital.

c) Here we assume again both 2(i) and 2(ii) begin with £1,000 each of commodity-capital, £1,000 of which is exchanged against 1(v) and the other with 1(s). 2(ii) has exchanged £800 with 1(v), leaving it with £200 to exchange. 2(i) has exchanged £200 with 1(v), and has £200 in money as a result. It has £800 of commodity-capital left to exchange with 1(s). 2(i) advances £1,000 in money. £200 buys its replacement fixed capital, and £800 buys its circulating capital. With the £1,000 received, Department 1(s) buys the remaining £200 of 2(ii)'s commodity-capital, and the remaining £800 of 2(ii)'s commodity-capital.

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