Thisoccursconstantlyundertheevery—dayformofprepayments。Anditisunderthisform，thattheEnglishgovernmentpurchasesopiumfromtheryotsofIndia……Inthesecases，however，themoneyalwaysactsasameansofpurchase……Ofcoursecapitalalsoisadvancedintheshapeofmoney……Thispointofview，however，doesnotfallwithinthehorizonofsimplecirculation。"（"ZurKritik，&c。，"pp。119，120。）
　　[49]Themonetarycrisisreferredtointhetext，beingaphaseofeverycrisis，mustbeclearlydistinguishedfromthatparticularformofcrisis，whichalsoiscalledamonetarycrisis，butwhichmaybeproducedbyitselfasanindependentphenomenoninsuchawayastoreactonlyindirectlyonindustryandcommerce。Thepivotofthesecrisesistobefoundinmoneyedcapital，andtheirsphereofdirectactionisthereforethesphereofthatcapital，viz。，banking，thestockexchange，andfinance。
　　[50]"Thesuddenreversionfromasystemofcredittoasystemofhardcashheapstheoreticalfrightontopofthepracticalpanic;andthedealersbywhoseagencycirculationisaffected，shudderbeforetheimpenetrablemysteryinwhichtheirowneconomicrelationsareinvolved"（KarlMarx，l。c。，p。126。）"Thepoorstandstill，becausetherichhavenomoneytoemploythem，thoughtheyhavethesamelandandhandstoprovidevictualsandclothes，asevertheyhad;……whichisthetruerichesofanation，andnotthemoney。"JohnBellers，ProposalsforRaisingaCollegeofIndustry，London，1696，p3。
　　[51]Thefollowingshowshowsuchtimesareexploitedbythe"amisducommerce。"
　　"Ononeoccasion（1839）anoldgraspingbanker（inthecity）inhisprivateroomraisedthelidofthedeskhesatover，anddisplayedtoafriendrollsofbank—notes，sayingwithintensegleetherewere£600，000
　　ofthem，theywereheldtomakemoneytight，andwouldallbeletoutafterthreeo’clockonthesameday。"（"TheTheoryofExchanges。TheBankCharterActof1844。"Lond。1864，p。81）。TheObserver，asemi—officialgovernmentorgan，containedthefollowingparagraphon24thApril，1864:
　　"Someverycuriousrumoursarecurrentofthemeanswhichhavebeenresortedtoinordertocreateascarcityofbanknotes……Questionableasitwouldseem，tosupposethatanytrickofthekindwouldbeadopted，thereporthasbeensouniversalthatitreallydeservesmention。"
　　[52]"Theamountofpurchasesorcontractsentereduponduringthecourseofanygivenday，willnotaffectthequantityofmoneyafloatonthatparticularday，but，inthevastmajorityofcases，willresolvethemselvesintomultifariousdraftsuponthequantityofmoneywhichmaybeafloatatsubsequentdatesmoreorlessdistant……Thebillsgrantedorcreditsopened，to—day，needhavenoresemblancewhatever，eitherinquantity，amountorduration，tothosegrantedorentereduponto—morrowornextday，nay，manyoftoday’sbills，andcredits，whendue，fallinwithamassofliabilitieswhoseoriginstraversearangeofantecedentdatesaltogetherindefinite，billsat12，6，3monthsor1oftenaggregatingtogethertoswellthecommonliabilitiesofoneparticularday……"（"TheCurrencyTheoryReviewed;
　　inaLettertotheScottishPeople。"ByaBankerinEngland。Edinburgh，1845，pp。29，30passim。）
　　[53]Asanexampleofhowlittlereadymoneyisrequiredintruecommercialoperations，IgivebelowastatementbyoneofthelargestLondonhousesofitsyearlyreceiptsandpayments。Itstransactionsduringtheyear1856，extendingtomanymillionsofpoundssterling，areherereducedtothescaleofonemillion。
　　Receipts。Payments。棗棗棗棗棗棗棗棗棗棗棗棗棗棗棗？;Bankers’andMerchants;;Billspayableafte;Billspayableafter;date;L533，59;dat;L302，674;ChequesonBankers，&c;ChequesonLondon;payableondeman;357，71;Banker;663，67;;CountryNote;9，62;;BankofEnglandNote;68，55;BankofEnglandNote;22，743;Gol;28，08;Gol;9，427;SilverandCoppe;1，48;SilverandCoppe;1，484;PostOfficeOrder;933;棗棗棗棗棗棗棗p;棗棗棗棗棗棗棗？sp;Tosp;L1，000，sp;Tosp;L1，000，00sp;"ReportfromtheSelectCommitteeontheBankActs，July，1858，"p。lxxi。[54]"Thecourseoftradebeingthusturned，fromexchangingofgoodsforgoods，ordeliveringandtaking，tosellingandpaying，allthebargains……arenowstateduponthefootofaPriceinmoney。"（"AnEssayuponPublickCredit。"3rdEd。Lond。，1710，p。8。）
　　[55]"L’argent……estdevenulebourreaudetouteschoses。"Financeisthe"alambic，quiafaitévaporerunequantitéeffroyabledebiensetdedenreespourfairecefatalprécis。""L’argentdéclarelaguerreàtoutlegenrehumain。"（Boisguillebert:"Dissertationsurlanaturedesrichesses，del’argentetdestribute。"Edit。Daire。
　　Economistesfinanciers。Paris，1843，t。i。，pp。413，419，417。）
　　[56]"OnWhitsuntide，1824，"saysMr。CraigbeforetheCommons’Committeeof1826，"therewassuchanimmensedemandfornotesuponthebanksofEdinburgh，thatby11o’clocktheyhadnotanoteleftintheircustody。Theysentroundtoallthedifferentbankstoborrow，butcouldnotgetthem，andmanyofthetransactionswereadjustedbyslipsofpaperonly;yetbythreeo’clockthewholeofthenoteswerereturnedintothebanksfromwhichtheyhadissued！Itwasameretransferfromhandtohand。"Althoughtheaverageeffectivecirculationofbank—notesinScotlandislessthanthreemillionssterling，yetoncertainpaydaysintheyear，everysinglenoteinthepossessionofthebankers，amountinginthewholetoabout£7，000，000，iscalledintoactivity。Ontheseoccasionsthenoteshaveasingleandspecificfunctiontoperform，andsosoonastheyhaveperformedit，theyHowbackintothevariousbanksfromwhichtheyissued。（SeeJohnFullarton，"RegulationofCurrencies。"Lond。1845，p。86，note。）Inexplanationitshouldbestated，thatinScotland，atthedateofFullarton’swork，notesandnotchequeswereusedtowithdrawdeposits。
　　[57]NotebytheInstituteofMarxism—LeninismintheRussianedition:Apparentlyaslipofthepen。Whenwritingfaversetheauthorevidentlymeantdirect。
　　[58]Tothequestion，"Iftherewereoccasiontoraise40millionsp。a。，whetherthesame6millions（gold）……wouldsufficeforsuchrevolutionsandcirculationsthereof，astraderequires，"Pettyrepliesinhisusualmasterlymanner，"Iansweryes:fortheexpensebeing40millions，iftherevolutionswereinsuchshortcircles，viz。，weekly，ashappensamongpoorartisansandlabourers，whoreceiveandpayeverySaturday，then40/52partsof1millionofmoneywouldanswertheseends，butifthecirclesbequarterly，accordingtoourcustomofpayingrent，andgatheringtaxes，then10millionswererequisite。Wherefore，supposingpaymentsingeneraltobeofamixedcirclebetweenoneweekand13，thenadd10millionsto40/52，thehalfofwhichwillbe51/2，soasifwehave51/2millionswehaveenough。"（WilliamPetty:"PoliticalAnatomyofIreland。"1672，Edit。:Lond。1691，pp。13，14。）
　　[59]Hencetheabsurdityofeverylawprescribingthatthebanksofacountryshallformreservesofthatpreciousmetalalonewhichcirculatesathome。
　　The"pleasantdifficulties"thusself—createdbytheBankofEngland，arewellknown。Onthesubjectofthegreatepochsinthehistoryofthechangesintherelativevalueofgoldandsilver，seeKarlMarx，l。c。，p。136
　　sq。SirRobertPeel，byhisBankActof1844，soughttotideoverthedifficulty，byallowingtheBankofEnglandtoissuenotesagainstsilverbullion，onconditionthatthereserveofsilvershouldneverexceedmorethanone—fourthofthereserveofgold。ThevalueofsilverbeingforthatpurposeestimatedatitspriceintheLondonmarket。
　　Addedinthe4thGermanedition。？Wefindourselvesoncemoreinaperiodofseriouschangeintherelativevaluesofgoldandsilver。About25yearsagotheratioexpressingtherelativevalueofgoldandsilverwas15—1/2:1;nowitisapproximately22:1，andsilverisstillconstantlyfallingasagainstgold。Thisisessentiallytheresultofarevolutioninthemodeofproductionofbothmetals。Formerlygoldwasobtainedalmostexclusivelybywashingitoutfromgold—bearingallovialdeposits，productsoftheweatheringofauriferousrocks。Nowthismethodhasbecomeinadequateandhasbeenforcedintothebackgroundbytheprocessingofthequartzlodesthemselves，awayofextractionwhichformerlywasonlyofsecondaryimportance，althoughwellknowntotheancients（Diodorus，111，12—14）（Diodor’sv。Sicilien"HistorischeBibliothek，"bookIII，12—14。
　　Stuttgart1828，pp。258—261）。Moreover，notonlywerenewhugesilverdepositsdiscoveredinNorthAmerica，intheWesternpartoftheRockyMountains，buttheseandtheMexicansilvermineswerereallyopenedupbythelayingofrailways，whichmadepossibletheshipmentofmodernmachineryandfuelandinconsequencetheminingofsilveronaverylargescaleatalowcost。Howeverthereisagreatdifferenceinthewaythetwometalsoccurinthequartzlodes。Thegoldismostlynative，butdisseminatedthroughoutthequartzinminutequantities。Thewholemassoftheveinmustthereforebecrushedandthegoldeitherwashedoutorextractedbymeansofmercury。
　　Often1，000，000grammesofquartzbarelyyield1—3andveryseldom30—60
　　grammesofgold。Silverisseldomfoundnative，howeveritoccursinspecialquartzthatisseparatedfromthelodewithcomparativeeaseandcontainsmostly40—90%silver;oritiscontained，insmallerquantities，incopper，leadandotheroreswhichinthemselvesareworthwhileworking。Fromthisaloneitisapparentthatthelabourexpendedontheproductionofgoldisratherincreasingwhilethatexpendedonsilverproductionhasdecidedlydecreased，whichquitenaturallyexplainsthedropinthevalueofthelatter。Thisfallinvaluewouldexpressitselfinastillgreaterfallinpriceifthepriceofsilverwerenotpeggedevento—daybyartificialmeans。ButAmerica’srichsilverdepositshavesofarbarelybeentapped，andthustheprospectsarethatthevalueofthismetalwillkeepondroppingforratheralongtimetocome。Astillgreatercontributingfactorhereistherelativedecreaseintherequirementofsilverforarticlesofgeneraluseandforluxuries，thatisitsreplacementbyplatedgoods，aluminium，etc。Onemaythusgaugetheutopianismofthebimetallistideathatcompulsoryinternationalquotationwillraisesilveragaintotheoldvalueratioof1:15—1/2。Itismorelikelythatsilverwillforfeititsmoneyfunctionmoreandmoreinthemarketsoftheworld。？FE。]
　　[60]Theopponents，themselves，ofthemercantilesystem，asystemwhichconsideredthesettlementofsurplustradebalancesingoldandsilverastheaimofinternationaltrade，entirelymisconceivedthefunctionsofmoneyoftheworld。IhaveshownbytheexampleofRicardoinwhatwaytheirfalseconceptionofthelawsthatregulatethequantityofthecirculatingmedium，isreflectedintheirequallyfalseconceptionoftheinternationalmovementofthepreciousmetals（l。c。，pp。150sq。）。Hiserroneousdogma:"Anunfavourablebalanceoftradeneverarisesbutfromaredundantcurrency……Theexportationofthecoiniscausedbyitscheapness，andisnottheeffect，butthecauseofanunfavourablebalance，"alreadyoccursinBarbon:"TheBalanceofTrade，iftherebeone，isnotthecauseofsendingawaythemoneyoutofanation;butthatproceedsfromthedifferenceofthevalueofbullionineverycountry。"（N。Barbon;l。c。，pp。59，60。）MacCullochin"TheLiteratureofPoliticalEconomy，aclassifiedcatalogue，Lond。1845，"praisesBarbonforthisanticipation，butprudentlypassesoverthenaiveforms，inwhichBarbonclothestheabsurdsuppositiononwhichthe"currencyprinciple"
　　isbased。Theabsenceofrealcriticismandevenofhonesty，inthatcatalogueculminatesinthesectionsdevotedtothehistoryofthetheoryofmoney;
　　thereasonisthatMacCullochinthispartoftheworkisflatteringLordOverstonewhomhecalls"facileprincepsargentanorum。"
　　[61]Forinstance，insubsidies，moneyloansforcarryingonwarsorforenablingbankstoresumecashpayments，&c。，itisthemoney—form，andnoother，ofvaluethatmaybewanted。
　　[62]"Iwoulddesire，indeed，nomoreconvincingevidenceofthecompetencyofthemachineryofthehoardsinspecie—payingcountriestoperformeverynecessaryofficeofinternationaladjustment，withoutanysensibleaidfromthegeneralcirculation，thanthefacilitywithwhichFrance，whenbutjustrecoveringfromtheshockofadestructiveforeigninvasion，completedwithinthespaceof27monthsthepaymentofherforcedcontributionofnearly20millionstothealliedpowers，andaconsiderableproportionofthesuminspecie，withoutanyperceptiblecontractionorderangementofherdomesticcurrency，orevenanyalarmingfluctuationofherexchanges。"
　　（Fullerton，l。c。，p。141。）[Addedinthe4thGermanedition。？WehaveastillmorestrikingexampleinthefacilitywithwhichthesameFrancewasablein1871—73topayoffwithin30monthsaforcedcontributionmorethantentimesasgreat，aconsiderablepartofitlikewiseinspecie。？F。E。]
　　[63]"L’argentsepartageentrelesnationsrelativementaubesoinqu’ellesenont……étanttoujoursattiréparlesproductions。"（LeTrosne，l。c。，p。916。）"Themineswhicharecontinuallygivinggoldandsilver，dogivesufficienttosupplysuchaneedfulbalancetoeverynation。"
　　（J。Vanderlint，l。c。，p。40。）
　　[64]"Exchangesriseandfalleveryweek，andatsomeparticulartimesintheyearrunhighagainstanation，andatothertimesrunashighonthecontrary。"
　　（N。Barbon，l。c。，p。39）
　　[65]Thesevariousfunctionsareliabletocomeintodangerousconflictwithoneanotherwhenevergoldandsilverhavealsotoserveasafundfortheconversionofbank—notes。
　　[66]"WhatmoneyismorethanofabsolutenecessityforaHomeTrade，isdeadstock……andbringsnoprofittothatcountryit’skeptin，butasitistransportedintrade，aswellasimported。"（JohnBellers，"Essays"，p。13。）"Whatifwehavetoomuchcoin？Wemaymeltdowntheheaviestandturnitintothesplendourofplate，vesselsorutensilsofgoldorsilver，orsenditoutasacommodity，wherethesameiswantedordesired;orletitoutatinterest，whereinterestishigh。"（W。Petty:"Quantulumcunque，"
　　p。39。）"MoneyisbutthefatoftheBodyPolitick，whereoftoomuchclothasoftenhinderitsagility，astoolittlemakesitsick……asfatlubricatesthemotionofthemuscles，feedsinwantofvictuals，fillsuptheunevencavities，andbeautifiesthebody;soclothmoneyinthestatequickenitsaction，feedsfromabroadintimeofdearthathome，evensaccounts……andbeautifiesthewhole;althomoreespeciallytheparticularpersonsthathaveitinplenty。"（W。Petty，"PoliticalAnatomyofIreland，"p。
　　14。）
　　ChapterFourKarlMarxCapitalVolumeOnePartII:
　　TheTransformationofMoneyandCapitalCHAPTERFOUR:
　　THEGENERALFORMULAFORCAPITAL
　　Thecirculationofcommoditiesisthestarting—pointofcapital。Theproductionofcommodities，theircirculation，andthatmoredevelopedformoftheircirculationcalledcommerce，theseformthehistoricalground—workfromwhichitrises。Themodernhistoryofcapitaldatesfromthecreationinthe16thcenturyofaworld—embracingcommerceandaworld—embracingmarket。
　　Ifweabstractfromthematerialsubstanceofthecirculationofcommodities，thatis，fromtheexchangeofthevarioususe—values，andconsideronlytheeconomicformsproducedbythisprocessofcirculation，wefinditsfinalresulttobemoney:thisfinalproductofthecirculationofcommoditiesisthefirstforminwhichcapitalappears。
　　Asamatterofhistory，capital，asopposedtolandedproperty，invariablytakestheformatfirstofmoney;itappearsasmoneyedwealth，asthecapitalofthemerchantandoftheusurer。[1]Butwehavenoneedtorefertotheoriginofcapitalinordertodiscoverthatthefirstformofappearanceofcapitalismoney。Wecanseeitdailyunderourveryeyes。Allnewcapital，tocommencewith，comesonthestage，thatis，onthemarket，whetherofcommodities，labour，ormoney，eveninourdays，intheshapeofmoneythatbyadefiniteprocesshastobetransformedintocapital。
　　Thefirstdistinctionwenoticebetweenmoneythatismoneyonly，andmoneythatiscapital，isnothingmorethanadifferenceintheirformofcirculation。
　　ThesimplestformofthecirculationofcommoditiesisC—M—C，thetransformationofcommoditiesintomoney，andthechangeofthemoneybackagainintocommodities;orsellinginordertobuy。Butalongsideofthisformwefindanotherspecificallydifferentform:M—C—M，thetransformationofmoneyintocommodities，andthechangeofcommoditiesbackagainintomoney;orbuyinginordertosell。Moneythatcirculatesinthelattermanneristherebytransformedinto，becomescapital，andisalreadypotentiallycapital。
　　NowletusexaminethecircuitM—C—Malittlecloser。Itconsists，liketheother，oftwoantitheticalphases。Inthefirstphase，M—C，orthepurchase，themoneyischangedintoacommodity。Inthesecondphase，C—M，orthesale，thecommodityischangedbackagainintomoney。Thecombinationofthesetwophasesconstitutesthesinglemovementwherebymoneyisexchangedforacommodity，andthesamecommodityisagainexchangedformoney;wherebyacommodityisboughtinordertobesold，or，neglectingthedistinctioninformbetweenbuyingandselling，wherebyacommodityisboughtwithmoney，andthenmoneyisboughtwithacommodity。[2]Theresult，inwhichthephasesoftheprocessvanish，istheexchangeofmoneyformoney，M—M。IfIpurchase2，000lbs。ofcottonfor£100，andresellthe2，000lbs。ofcottonfor£110，Ihave，infact，exchanged£100for£110，moneyformoney。
　　NowitisevidentthatthecircuitM—C—Mwouldbeabsurdandwithoutmeaningiftheintentionweretoexchangebythismeanstwoequalsumsofmoney，£100for£100。Themiser’splanwouldbefarsimplerandsurer;hestickstohis£100insteadofexposingittothedangersofcirculation。Andyet，whetherthemerchantwhohaspaid£100forhiscottonsellsitfor£110，orletsitgofor£100，oreven£50，hismoneyhas，atallevents，gonethroughacharacteristicandoriginalmovement，quitedifferentinkindfromthatwhichitgoesthroughinthehandsofthepeasantwhosellscorn，andwiththemoneythussetfreebuysclothes。WehavethereforetoexaminefirstthedistinguishingcharacteristicsoftheformsofthecircuitsM—C—MandC—M—C，andindoingthistherealdifferencethatunderliesthemeredifferenceofformwillrevealitself。
　　Letussee，inthefirstplace，whatthetwoformshaveincommon。
　　Bothcircuitsareresolvableintothesametwoantitheticalphases，C—M，asale，andM—C，apurchase。Ineachofthesephasesthesamematerialelements—acommodity，andmoney，andthesameeconomicdramatispersonae，abuyerandaseller—confrontoneanother。Eachcircuitistheunityofthesametwoantitheticalphases，andineachcasethisunityisbroughtaboutbytheinterventionofthreecontractingparties，ofwhomoneonlysells，anotheronlybuys，whilethethirdbothbuysandsells。
　　What，however，firstandforemostdistinguishesthecircuitC—M—CfromthecircuitM—C—M，istheinvertedorderofsuccessionofthetwophases。
　　Thesimplecirculationofcommoditiesbeginswithasaleandendswithapurchase，whilethecirculationofmoneyascapitalbeginswithapurchaseandendswithasale。Intheonecaseboththestarting—pointandthegoalarecommodities，intheothertheyaremoney。Inthefirstformthemovementisbroughtaboutbytheinterventionofmoney，inthesecondbythatofacommodity。
　　InthecirculationC—M—C，themoneyisintheendconvertedintoacommodity，thatservesasause—value;itisspentonceforall。Intheinvertedform，M—C—M，onthecontrary，thebuyerlaysoutmoneyinorderthat，asaseller，hemayrecovermoney。Bythepurchaseofhiscommodityhethrowsmoneyintocirculation，inordertowithdrawitagainbythesaleofthesamecommodity。Heletsthemoneygo，butonlywiththeslyintentionofgettingitbackagain。Themoney，therefore，isnotspent，itismerelyadvanced。[3]
　　InthecircuitC—M—C，thesamepieceofmoneychangesitsplacetwice。
　　Thesellergetsitfromthebuyerandpaysitawaytoanotherseller。Thecompletecirculation，whichbeginswiththereceipt，concludeswiththepayment，ofmoneyforcommodities。ItistheverycontraryinthecircuitM—C—M。Hereitisnotthepieceofmoneythatchangesitsplacetwice，butthecommodity。Thebuyertakesitfromthehandsofthesellerandpassesitintothehandsofanotherbuyer。Justasinthesimplecirculationofcommoditiesthedoublechangeofplaceofthesamepieceofmoneyeffectsitspassagefromonehandintoanother，soherethedoublechangeofplaceofthesamecommoditybringsabouttherefluxofthemoneytoitspointofdeparture。
　　Suchrefluxisnotdependentonthecommoditybeingsoldformorethanwaspaidforit。Thiscircumstanceinfluencesonlytheamountofthemoneythatcomesback。Therefluxitselftakesplace，sosoonasthepurchasedcommodityisresold，inotherwords，sosoonasthecircuitM—C—Miscompleted。
　　Wehavehere，therefore，apalpabledifferencebetweenthecirculationofmoneyascapital，anditscirculationasmeremoney。
　　ThecircuitC—M—Ccomescompletelytoanend，sosoonasthemoneybroughtinbythesaleofonecommodityisabstractedagainbythepurchaseofanother。
　　If，nevertheless，therefollowsarefluxofmoneytoitsstarting—point，thiscanonlyhappenthrougharenewalorrepetitionoftheoperation。
　　IfIsellaquarterofcornfor£3，andwiththis£3buyclothes，themoney，sofarasIamconcerned，isspentanddonewith。Itbelongstotheclothesmerchant。IfInowsellasecondquarterofcorn，moneyindeedflowsbacktome，nothoweverasasequeltothefirsttransaction，butinconsequenceofitsrepetition。Themoneyagainleavesme，sosoonasIcompletethissecondtransactionbyafreshpurchase。Therefore，inthecircuitC—M—C，theexpenditureofmoneyhasnothingtodowithitsreflux。Ontheotherhand，inM—C—M，therefluxofthemoneyisconditionedbytheverymodeofitsexpenditure。Withoutthisreflux，theoperationfails，ortheprocessisinterruptedandincomplete，owingtotheabsenceofitscomplementaryandfinalphase，thesale。
　　ThecircuitC—M—Cstartswithonecommodity，andfinisheswithanother，whichfallsoutofcirculationandintoconsumption。Consumption，thesatisfactionofwants，inoneword，use—value，isitsendandaim。ThecircuitM—C—M，onthecontrary，commenceswithmoneyandendswithmoney。Itsleadingmotive，andthegoalthatattractsit，isthereforemereexchange—value。
　　Inthesimplecirculationofcommodities，thetwoextremesofthecircuithavethesameeconomicform。Theyarebothcommodities，andcommoditiesofequalvalue。Buttheyarealsouse—valuesdifferingintheirqualities，as，forexample，cornandclothes。Theexchangeofproducts，ofthedifferentmaterialsinwhichthelabourofsocietyisembodied，formsherethebasisofthemovement。ItisotherwiseinthecirculationM—C—M，whichatfirstsightappearspurposeless，becausetautological。Bothextremeshavethesameeconomicform。Theyarebothmoney，andthereforearenotqualitativelydifferentuse—values;formoneyisbuttheconvertedformofcommodities，inwhichtheirparticularuse—valuesvanish。Toexchange£100forcotton，andthenthissamecottonagainfor£100，ismerelyaroundaboutwayofexchangingmoneyformoney，thesameforthesame，andappearstobeanoperationjustaspurposelessasitisabsurd。[4]Onesumofmoneyisdistinguishablefromanotheronlybyitsamount。ThecharacterandtendencyoftheprocessM—C—M，isthereforenotduetoanyqualitativedifferencebetweenitsextremes，bothbeingmoney，butsolelytotheirquantitativedifference。Moremoneyiswithdrawnfromcirculationatthefinishthanwasthrownintoitatthestart。Thecottonthatwasboughtfor£100isperhapsresoldfor£100£10or£100。TheexactformofthisprocessisthereforeM—C—M’，whereM’=MdeltaM=theoriginalsumadvanced，plusanincrement。ThisincrementorexcessovertheoriginalvalueIcall"surplus—value"。
　　Thevalueoriginallyadvanced，therefore，notonlyremainsintactwhileincirculation，butaddstoitselfasurplus—valueorexpandsitself。Itisthismovementthatconvertsitintocapital。
　　Ofcourse，itisalsopossible，thatinC—M—C，thetwoextremesC—C，saycornandclothes，mayrepresentdifferentquantitiesofvalue。Thefarmermaysellhiscornaboveitsvalue，ormaybuytheclothesatlessthantheirvalue。Hemay，ontheotherhand，"bedone"bytheclothesmerchant。
　　Yet，intheformofcirculationnowunderconsideration，suchdifferencesinvaluearepurelyaccidental。Thefactthatthecornandtheclothesareequivalents，doesnotdeprivetheprocessofallmeaning，asitdoesinM—C—M。Theequivalenceoftheirvaluesisratheranecessaryconditiontoitsnormalcourse。
　　Therepetitionorrenewaloftheactofsellinginordertobuy，iskeptwithinboundsbytheveryobjectitaimsat，namely，consumptionorthesatisfactionofdefinitewants，anaimthatliesaltogetheroutsidethesphereofcirculation。Butwhenwebuyinordertosell，we，onthecontrary，beginandendwiththesamething，money，exchange—value;andtherebythemovementbecomesinterminable。Nodoubt，MbecomesMdeltaM，£100become£110。Butwhenviewedintheirqualitativeaspectalone，£110arethesameas£100，namelymoney;andconsideredquantitatively，£110is，like£100，asumofdefiniteandlimitedvalue。Ifnow，the£110bespentasmoney，theyceasetoplaytheirpart。Theyarenolongercapital。Withdrawnfromcirculation，theybecomepetrifiedintoahoard，andthoughtheyremainedinthatstatetilldoomsday，notasinglefarthingwouldaccruetothem。
　　If，then，theexpansionofvalueisonceaimedat，thereisjustthesameinducementtoaugmentthevalueofthe£110asthatofthe£100;forbotharebutlimitedexpressionsforexchange—value，andthereforebothhavethesamevocationtoapproach，byquantitativeincrease，asnearaspossibletoabsolutewealth。Momentarily，indeed，thevalueoriginallyadvanced，the£100isdistinguishablefromthesurplus—valueof£10thatisannexedtoitduringcirculation;
　　butthedistinctionvanishesimmediately。Attheendoftheprocess，wedonotreceivewithonehandtheoriginal£100，andwiththeother，thesurplus—valueof£10。Wesimplygetavalueof£110，whichisinexactlythesameconditionandfitnessforcommencingtheexpandingprocess，astheoriginal£100was。Moneyendsthemovementonlytobeginitagain。[5]Therefore，thefinalresultofeveryseparatecircuit，inwhichapurchaseandconsequentsalearecompleted，formsofitselfthestarting—pointofanewcircuit。
　　Thesimplecirculationofcommodities—sellinginordertobuy—isameansofcarryingoutapurposeunconnectedwithcirculation，namely，theappropriationofuse—values，thesatisfactionofwants。Thecirculationofmoneyascapitalis，onthecontrary，anendinitself，fortheexpansionofvaluetakesplaceonlywithinthisconstantlyrenewedmovement。Thecirculationofcapitalhasthereforenolimits。[6]
　　Astheconsciousrepresentativeofthismovement，thepossessorofmoneybecomesacapitalist。Hisperson，orratherhispocket，isthepointfromwhichthemoneystartsandtowhichitreturns。
　　Theexpansionofvalue，whichistheobjectivebasisormain—springofthecirculationM—C—M，becomeshissubjectiveaim，anditisonlyinsofarastheappropriationofevermoreandmorewealthintheabstractbecomesthesolemotiveofhisoperations，thathefunctionsasacapitalist，thatis，ascapitalpersonifiedandendowedwithconsciousnessandawill。Use—valuesmustthereforeneverbelookeduponastherealaimofthecapitalist;[7]neithermusttheprofitonanysingletransaction。Therestlessnever—endingprocessofprofit—makingaloneiswhatheaimsat。[8]Thisboundlessgreedafterriches，thispassionatechaseafterexchange—value[9]，iscommontothecapitalistandthemiser;butwhilethemiserismerelyacapitalistgonemad，thecapitalistisarationalmiser。Thenever—endingaugmentationofexchange—value，whichthemiserstrivesafter，byseekingtosave[10]hismoneyfromcirculation，isattainedbythemoreacutecapitalist，byconstantlythrowingitafreshintocirculation。[11]
　　Theindependentform，i。e。，themoney—form，whichthevalueofcommoditiesassumesinthecaseofsimplecirculation，servesonlyonepurpose，namely，theirexchange，andvanishesinthefinalresultofthemovement。Ontheotherhand，inthecirculationM—C—M，boththemoneyandthecommodityrepresentonlydifferentmodesofexistenceofvalueitself，themoneyitsgeneralmode，andthecommodityitsparticular，or，sotosay，disguisedmode。[12]Itisconstantlychangingfromoneformtotheotherwithouttherebybecominglost，andthusassumesanautomaticallyactivecharacter。Ifnowwetakeinturneachofthetwodifferentformswhichself—expandingvaluesuccessivelyassumesinthecourseofitslife，wethenarriveatthesetwopropositions:
　　Capitalismoney:Capitaliscommodities。[13]Intruth，however，valueisheretheactivefactorinaprocess，inwhich，whileconstantlyassumingtheforminturnofmoneyandcommodities，itatthesametimechangesinmagnitude，differentiatesitselfbythrowingoffsurplus—valuefromitself;theoriginalvalue，inotherwords，expandsspontaneously。Forthemovement，inthecourseofwhichitaddssurplus—value，isitsownmovement，itsexpansion，therefore，isautomaticexpansion。
　　Becauseitisvalue，ithasacquiredtheoccultqualityofbeingabletoaddvaluetoitself。Itbringsforthlivingoffspring，or，attheleast，laysgoldeneggs。