Whyisitbought？"Becauseofthevaluesitissupposedpotentiallytocontain。"Butifacertainthingissaidtobeacommodity，thereisnolongeranyquestionastothereasonwhyitisbought，thatis，astotheutilitytobederivedfromit，theapplicationtobemadeofit。Itisacommodityasanobjectoftraffic。AllM。Proudhon’sargumentsarelimitedtothis：laborisnotboughtasanimmediateobjectofconsumption。No，itisboughtasaninstrumentofproduction，asamachinewouldbebought。
Asacommodity，laborhasnovalueanddoesnotproduce。M。Proudhonmightjustaswellhavesaidthatthereisnosuchthingasacommodity，sinceeverycommodityisobtainedmerelyforsomeutilitarianpurpose，andneverasacommodityinitself。
Inmeasuringthevalueofcommoditiesbylabor，M。Proudhonvaguelyglimpsestheimpossibilityofexcludinglaborfromthissamemeasure，insofaraslaborhasavalue，aslaborisacommodity。Hehasamisgivingthatitisturningthewageminimumintothenaturalandnormalpriceofimmediatelabor，thatisisacceptingtheexistingstateofsociety。So，togetawayfromthisfatalconsequence，hefacesaboutandassertsthatlaborisnotacommodity，thatitcannothavevalue。Heforgetsthathehimselfhastakenthevalueoflaborasameasure，heforgetsthathiswholesystemrestsonlaborasacommodity，onlaborwhichisbartered，bought，sold，exchangedforproduce，etc。，onlabor，infact，whichisanimmediatesourceofincomefortheworker。Heforgetseverything。
Tosavehissystem，heconsentstosacrificeitsbasis。
Etproptervitamvivendiperderecausas！
Wenowcometoanewdefinitionof"constitutedvalue"。
"Valueistheproportionalrelationoftheproductswhichconstitutewealth。"
Letusnoteinthefirstplacethatthesinglephrase"relativeorexchangevalue"impliestheideaofsomerelationinwhichproductsareexchangedreciprocally。Bygivingthename"proportionalrelation"tothisrelation，nochangeismadeintherelativevalue，exceptintheexpression。Neitherthedepreciationnortheenhancementofthevalueofaproductdestroysitsqualityofbeinginsome"proportionalrelation"withtheotherproductswhichconstitutewealth。
Whythenthisnewterm，whichintroducesnonewidea？
"Proportionalrelation"suggestsmanyothereconomicrelations，suchasproportionalityinproduction，thetrueproportionbetweensupplyanddemand，etc。，andM。Proudhonisthinkingofallthatwhenheformulatesthisdidacticparaphraseofmarketablevalue。
Inthefirstplace，therelativevalueofproductsbeingdeterminedbythecomparativeamountoflaborusedintheproductionofeachofthem，proportionalrelations，appliedtothisspecialcase，standfortherespectivequotaofproductswhichcanbemanufacturedinagiventime，andwhichinconsequencearegiveninexchangeforoneanother。
LetusseewhatadvantageM。Proudhondrawsfromthisproportionalrelation。
Everyoneknowsthatwhensupplyanddemandareevenlybalanced，therelativevalueofanyproductisaccuratelydeterminedbythequantityoflaborembodiedinit，thatistosay，thatthisrelativevalueexpressestheproportionalrelationpreciselyinthesensewehavejustattachedtoit。M。Proudhoninvertstheorderofthing。Begin，hesays，bymeasuringtherelativevalueofaproductbythequantityoflaborembodiedinit，andsupplyanddemandwillinfalliblybalanceoneanother。Productionwillcorrespondtoconsumption，theproductwillalwaysbeexchangeable。Itscurrentpricewillexpressexactlyitstruevalue。Insteadofsayinglikeeveryoneelse：whentheweatherisfine，alotofpeoplearetobeseengoingoutforawalk。M。Proudhonmakeshispeoplegooutforawalkinordertobeabletoensurethemfineweather。
WhatM。Proudhongivesastheconsequenceofmarketablevaluedeterminedaprioribylabortimecouldbejustifiedonlybyalawcouchedmoreorlessinthefollowingterms：
Productswillinfuturebeexchangedintheexactratioofthelabortimetheyhavecost。Whatevermaybetheproportionofsupplytodemand，theexchangeofcommoditieswillalwaysbemadeasiftheyhadbeenproducedproportionatelytothedemand。LetM。Proudhontakeituponhimselftoformulateandlaydownsuchalaw，andweshallrelievehimofthenecessityofgivingproofs。If，ontheotherhand，heinsistsonjustifyinghistheory，notasalegislator，butasaneconomist，hewillhavetoprovethatthetimeneededtocreateacommodityindicatesexactlythedegreeofitsutilityandmarksitsproportionalrelationtothedemand，andinconsequence，tothetotalamountofwealth。Inthiscase，ifaproductissoldatapriceequaltoitscostofproduction，supplyanddemandwillalwaysbeevenlybalanced;forthecostofproductionissupposedtoexpressthetruerelationbetweensupplyanddemand。
Actually，M。Proudhonsetsouttoprovethatlabortimeneededtocreateaproductindicatesitstrueproportionalrelationtoneeds，sothatthethingswhoseproductioncoststheleasttimearethemostimmediatelyuseful，andsoon，stepbystep。Themereproductionofaluxuryobjectprovesatonce，accordingtothisdoctrine，thatsocietyhassparetimewhichallowsittosatisfyaneedforluxury。
M。Proudhonfindstheveryproofofhisthesisintheobservationthatthemostusefulthingscosttheleasttimetoproduce，thatsocietyalwaysbeginswiththeeasiestindustriesandsuccessively"startsontheproductionofobjectswhichcostmorelabortimeandwhichcorrespondtoahigherorderofneeds。"
M。ProudhonborrowsfromM。Dunoyertheexampleofextractiveindustry——fruit—gathering，pasturage，hunting，fishing，etc。——whichisthesimplest，theleastcostlyofindustries，andtheonebywhichmanbegan"thefirstdayofhissecondcreation"。ThefirstdayofhisfirstcreationisrecordedinGenesis，whichshowsGodastheworld’sfirstmanufacturer。
ThingshappeninquiteadifferentwayfromwhatM。Proudhonimagines。
Theverymomentcivilizationbegins，productionbeginstobefoundedontheantagonismoforders，estates，classes，andfinallyontheantagonismofaccumulatedlaborandactuallabor。Noantagonism，noprogress。Thisisthelawthatcivilizationhasfolloweduptoourdays。Tillnowtheproductiveforceshavebeendevelopedbyvirtueofthissystemofclassantagonisms。Tosaynowthat，becausealltheneedsofalltheworkersweresatisfied，mencoulddevotethemselvestothecreationofproductsofahigherorder——tomorecomplicatedindustries——wouldbetoleaveclassantagonismoutofaccountandturnallhistoricaldevelopmentupsidedown。Itislikesayingthatbecause，undertheRomanemperors，muraenawerefattenedinartificialfishponds，thereforetherewasenoughtofeedabundantlythewholeRomanpopulation。Actually，onthecontrary，theRomanpeoplehadnotenoughtobuybreadwith，whiletheRomanaristocratshadslavesenoughtothrowasfoddertothemuraena。
Thepriceoffoodhasalmostcontinuouslyrisen，whilethepriceofmanufacturedandluxurygoodshasalmostcontinuouslyfallen。Taketheagriculturalindustryitself;themostindispensableobjects，likecorn，meat，etc。，riseinprice，whilecotton，sugar，coffee，etc。，fallinasurprisingproportion。Andevenamongcomestiblesproper，theluxuryarticles，likeartichokes，asparagus，etc。，aretodayrelativelycheaperthanfoodstuffsofprimenecessity。Inourage，thesuperfluousiseasiertoproducethanthenecessary。Finally，atdifferenthistoricalepochs，thereciprocalpricerelationsarenotonlydifferent，butopposedtooneanother。InthewholeoftheMiddleAges，agriculturalproductswererelativelycheaperthanmanufacturedproducts;inmoderntimestheyareininverseratio。
DoesthismeanthattheutilityofagriculturalproductshasdiminishedsincetheMiddleAges？
Theuseofproductsisdeterminedbythesocialconditionsinwhichtheconsumersfindthemselvesplaced，andtheseconditionsthemselvesarebasedonclassantagonism。
Cotton，potatoesandspiritsareobjectsofthemostcommonuse。
Potatoeshaveengenderedscrofula;cottonhastoagreatextentdrivenoutflaxandwool，althoughwoolandflaxare，inmanycases，ofgreaterutility，ifonlyfromthepointofviewofhygiene;finally，spiritshavegottheupperhandofbeerandwine，althoughspiritsusedasanalimentarysubstanceareeverywhererecognizedtobepoison。Forawholecentury，governmentsstruggledinvainagainsttheEuropeanopium;economicsprevailed，anddictateditsorderstoconsumption。
Whyarecotton，potatoesandspiritsthepivotsofbourgeoissociety？
Becausetheleastamountoflaborisneededtoproducethem，and，consequently，theyhavethelowestprice。Whydoestheminimumpricedeterminethemaximumconsumption？Isitbyanychancebecauseoftheabsoluteutilityoftheseobjects，theirintrinsicutility，theirutilityinsomuchastheycorrespond，inthemostusefulmanner，intheneedsoftheworkerasaman，andnottothemanasaworker？No，itisbecauseinasocietyfoundedonpovertythepoorestproductshavethefatalprerogativeofbeingusedbythegreatestnumber。
Tosaynowthatbecausetheleastcostlythingsareingreateruse，theymustbeofgreaterutility，issayingthatthewideuseofspirits，becauseoftheirlowcostofproduction，isthemostconclusiveproofoftheirutility;itistellingtheproletarianthatpotatoesaremorewholesomeforhimthanmeat;itisacceptingthepresentstateofaffairs;itis，inshort，makinganapology，withM。Proudhon，forasocietywithoutunderstandingit。
Inafuturesociety，inwhichclassantagonismwillhaveceased，inwhichtherewillnolongerbeanyclasses，usewillnolongerbedeterminedbytheminimumtimeofproduction;butthetimeofproductiondevotedtodifferentarticleswillbedeterminedbythedegreeoftheirsocialutility。
ToreturntoM。Proudhon’sthesis：themomentthelabortimenecessaryfortheproductionofanarticleceasestobetheexpressionofitsdegreeofutility，theexchangevalueofthissamearticle，determinedbeforehandbythelabortimeembodiedinit，becomesquiteusabletoregulatethetruerelationofsupplytodemand，thatis，theproportionalrelationinthesenseM。Proudhonatthemomentattributestoit。
Itisnotthesaleofagivenproductatthepriceofitscostofproductionthatconstitutesthe"proportionalrelation"ofsupplytodemand，ortheproportionalquotaofthisproductrelativelytothesumtotalofproduction;itisthevariationsinsupplyanddemandthatshowtheproducerwhatamountofagivencommodityhemustproduceinordertoreceiveinexchangeatleastthecostofproduction。Andasthesevariationsarecontinuallyoccurring，thereisalsoacontinualmovementofwithdrawlandapplicationofcapitalinthedifferentbranchesofindustry。
"Itisonlyinconsequenceofsuchvariationsthatcapitalisapportionedprecisely，intherequisiteabundanceandnomore，totheproductionofthedifferentcommoditieswhichhappentobeindemand。Withtheriseorfallofprice，profitsareelevatedabove，ordepressedbelowtheirgenerallevel，andcapitaliseitherencouragedtoenterinto，oriswarnedtodepartfrom，theparticularemploymentinwhichthevariationhastakenplace。"——
"Whenwelookatthemarketsofalargetown，andobservehowregularlytheyaresuppliedbothwithhomeandforeigncommodities，inthequantityinwhichtheyarerequired，underallthecircumstancesofvaryingdemand，arisingfromthecapriceoftaste，orachangeintheamountofpopulation，withoutoftenproducingeithertheeffectsofaglutfromatooabundantsupply，oranenormouslyhighpricefromthesupplybeingunequaltothedemand，wemustconfessthattheprinciplewhichapportionscapitaltoeachtradeinthepreciseamountthatisrequired，ismoreactivethanisgenerallysupposed。"
（Ricardo，Vol。I，pp。105and108）
IfM。Proudhonadmitsthatthevalueofproductsisdeterminedbylabortime，heshouldequallyadmitthatitisthefluctuatingmovementalonethatinsocietyfoundedonindividualexchangesmakelaborthemeasureofvalue。Thereisnoready—madeconstituted"proportionalrelation"，butonlyaconstitutingmovement。
Wehavejustseeninwhatsenseitiscorrecttospeakof"proportion"
asofaconsequenceofvaluedeterminedbylabortime。Weshallseenowhowthismeasurebytime，calledbyM。Proudhonthe"lawofproportion"，becomestransformedintoalawofdisproportion。
Everynewinventionthatenablestheproductioninonehourofthatwhichhashithertobeenproducedintwohoursdepreciatesallsimilarproductsonthemarket。Competitionforcestheproducertoselltheproductoftwohoursascheaplyastheproductofonehour。Competitioncarriesintoeffectthelawaccordingtowhichtherelativevalueofaproductisdeterminedbythelabortimeneededtoproduceit。Labortimeservingasthemeasureofmarketablevaluebecomesinthiswaythelawofthecontinualdepreciationoflabor。Wewillsaymore。Therewillbedepreciationnotonlyofthecommoditiesbroughtintothemarket，butalsooftheinstrumentsofproductionandofwholeplants。ThisfactwasalreadypointedoutbyRicardowhenhesaid：
"Byconstantlyincreasingthefacilityofproduction，weconstantlydiminishthevalueofsomeofthecommoditiesbeforeproduced。"
（Vol。II，p。59）
Sismondigoesfurther。Heseesinthis"valueconstituted"bylabortime，thesourceofallthecontradictionsofmodernindustryandcommerce。
"Mercantilevalue，"hesays，"isalwaysdeterminedinthelongrunbythequantityoflaborneededtoobtainthethingevaluated：itisnotwhatithasactuallycost，butwhatitwouldcostinthefuturewith，perhaps，perfectedmeans;andthisquantity，althoughdifficulttoevaluate，isalwaysfaithfullyestablishedbycompetition……
"Itisonthisbasisthatthedemandoftheselleraswellasthesupplyofthebuyerisreckoned。Theformerwillperhapsdeclarethatthethinghascosthim10days’labor;butifthelatterrealizesthatitcanhenceforthbeproducedwitheightdays’labor，intheeventofcompetitionprovingthistothetwocontractingparties，thevaluewillbereduced，andthemarketpricefixedateightdaysonly。Ofcourse，eachofthepartiesbelievesthatthethingisuseful，thatitisdesired，thatwithoutdesiretherewouldbenosale;butthefixingofthepricehasnothingtodowithutility。"
（Etudes，etc。，Vol。II，p。267）
Itisimportanttoemphasizethepointthatwhatdeterminesvalueisnotthetimetakentoproduceathing，buttheminimumtimeitcouldpossiblybeproducedin，andtheminimumisascertainedbycompetition。Supposeforamomentthatthereisnomorecompetitionandconsequentlynolongeranymeanstoascertaintheminimumoflabornecessaryfortheproductionofacommodity;whatwillhappen？Itwillsufficetospendsixhours’ontheproductionofanobject，inordertohavetheright，accordingtoM。
Proudhon，todemandinexchangesixtimesasmuchastheonewhohastakenonlyonehourtoproducethesameobject。
Insteadofa"proportionalrelation"，wehaveadisproportionalrelation，atanyrateifweinsistonstickingtorelations，goodorbad。
Thecontinualdepreciationoflaborisonlyoneside，oneconsequenceoftheevaluationofcommoditiesbylabortime。Theexcessiveraisingofprices，overproductionandmanyotherfeaturesofindustrialanarchyhavetheirexplanationinthismodeofevaluation。
ButdoeslabortimeusedasameasureofvaluegiveriseatleasttotheproportionalvarietyofproductsthatsodelightsM。Proudhon？
Onthecontrary，monopolyinallitsmonotonyfollowsinitswakeandinvadestheworldofproducts，justastoeverybody’sknowledgemonopolyinvadestheworldoftheinstrumentsofproduction。Itisonlyinafewbranchesofindustry，likethecottonindustry，thatveryrapidprogresscanbemade。Thenaturalconsequenceofthisprocessisthattheproductsofcottonmanufacture，forinstance，fallrapidlyinprice：butasthepriceofcottongoesdown，thepriceofflaxwillbereplacedbycotton。
Inthisway，flaxhasbeendrivenoutofalmostthewholeofNorthAmerica。
Andwehaveobtained，insteadoftheproportionalvarietyofproducts，thedominanceofcotton。
Whatisleftofthis"proportionalrelation"？Nothingbutthepiouswishofanhonestmanwhowouldlikecommoditiestobeproducedinproportionswhichwouldpermitoftheirbeingsoldatanhonestprice。
Inallagesgood—naturedbourgeoisandphilanthropiceconomistshavetakenpleasureinexpressingthisinnocentwish。
LetushearwhatoldBoisguillebertsays：
"Thepriceofcommodities，"hesays，"mustalwaysbeproportionate;
foritissuchmutualunderstandingalonethatcanenablethemtoexisttogethersoastogivethemselvestooneanotheratanymoment（hereisM。Proudhon’scontinualexchangeability）andreciprocallygivebirthtooneanother……
"Aswealth，then，isnothingbutthiscontinualintercoursebetweenmanandman，craftandcraft，etc。，itisafrightfulblindnesstogolookingforthecauseofmiseryelsewherethaninthecessationofsuchtrafficbroughtaboutbyadisturbanceofproportioninprices。"
（Dissertationsurlanaturedesrichesses，Daire’sed。[pp。405and408]）
[Boisguillebert’sworkisquotedfromthesymposiumEconomistes—financiersduXVIIIsiecle。PrefacedbyahistoricalsketchoneachauthorandaccompaniedbycommentariesandexplanatorynotesbyEugeneDaire;
Paris1843。]
Letuslistenalsotoamoderneconomist：
"Thegreatlawasnecessarytobeaffixedtoproduction，thatis，thelawofproportion，whichalonecanpreservethecontinuityofvalue……
"Theequivalentmustbeguaranteed……
"Allnationshaveattempted，atvariousperiodsoftheirhistory，byinstitutingnumerouscommercialregulationsandrestrictions，toeffect，insomedegree，theobjecthereexplained……
Butthenaturalandinherentselfishnessofman……hasurgedhimtobreakdownallsuchregulations。ProportionateProductionistherealizationoftheentiretruthoftheScienceofSocialEconomy。"
（W。Atkinson，PrinciplesofPoliticalEconomy，London1840，pp。170—95）
FuitTroja。[Troyisnomore。]Thistrueproportionbetweensupplyanddemand，whichisbeginningoncemoretobetheobjectofsomanywishes，ceasedlongagotoexist。Ithaspassedintothestageofsenility。Itwaspossibleonlyatatimewhenthemeansofproductionwerelimited，whenthemovementofexchangetookplacewithinveryrestrictedbounds。
Withthebirthoflarge—scaleindustrythistrueproportionhadtocometoanend，andproductionisinevitablycompelledtopassincontinuoussuccessionthroughvicissitudesofprosperity，depression，crisis，stagnation，renewedprosperity，andsoon。
Thosewho，likeSismondi，wishtoreturntothetrueproportionofproduction，whilepreservingthepresentbasisofsociety，arereactionary，since，tobeconsistent，theymustalsowishtobringbackalltheotherconditionsofindustryofformertimes。
Whatkeptproductionintrue，ormoreorlesstrue，proportions？
Itwasdemandthatdominatedsupply，thatprecededit。Productionfollowedcloseontheheelsofconsumption。Large—scaleindustry，forcedbytheveryinstrumentsatitsdisposaltoproduceonanever—increasingscale，cannolongerwaitfordemand。Productionprecedesconsumption，supplycompelsdemands。
Inexistingsociety，inindustrybasedonindividualexchange，anarchyofproduction，whichisthesourceofsomuchmisery，isatthesametimethesourceofallprogress。
Thus，oneortheother：
Eitheryouwantthetrueproportionsofpastcenturieswithpresent—daymeansofproduction，inwhichcaseyouarebothreactionaryandutopian。
Oryouwantprogresswithoutanarchy：inwhichcase，inordertopreservetheproductiveforces，youmustabandonindividualexchange。
Individualexchangeissuitedonlytothesmall—scaleindustryofpastcenturieswithitscorollaryof"trueproportion"，orelsetolarge—scaleindustrywithallitstrainofmiseryandanarchy。
Afterall，thedeterminationofvaluebylabortime——theformulaM。Proudhongivesusastheregeneratingformulaofthefuture——isthereforemerelythescientificexpressionoftheeconomicrelationsofpresent—daysociety，aswasclearlyandpreciselydemonstratedbyRicardolongbeforeM。Proudhon。
Butdoesthe"equalitarian"applicationofthisformulaatleastbelongtoM。Proudhon？Washethefirsttothinkofreformingsocietybytransformingallmenintoactualworkersexchangingequalamountsoflabor？
IsitreallyforhimtoreproachtheCommunists——thesepeopledevoidofallknowledgeofpoliticaleconomy，these"obstinatelyfoolishmen"，these"paradisedreamers"——withnothavingfound，beforehim，this"solutionoftheproblemoftheproletariat"？
AnyonewhoisinanywayfamiliarwiththetrendofpoliticaleconomyinEnglandcannotfailtoknowthatalmostalltheSocialistsinthatcountryhave，atdifferentperiods，proposedtheequalitarianapplicationoftheRicardiantheory。WequoteforM。Proudhon：Hodgskin，PoliticalEconomy，1827;WilliamThompson，AnInquiryintothePrinciplesoftheDistributionofWealthMostConducivetoHumanHappiness，1824;
T。R。Edmonds，PracticalMoralandPoliticalEconomy，1828[18]，etc。，etc。，andfourpagesmoreofetc。WeshallcontentourselveswithlisteningtoanEnglishCommunist，Mr。Bray。Weshallgivethedecisivepassagesinhisremarkablework，Labor’sWrongsandLabor’sRemedy，Leeds，1839，andweshalldwellsometimeuponit，firstly，becauseMr。
BrayisstilllittleknowninFrance，andsecondly，becausewethinkthatwehavediscoveredinhimthekeytothepast，presentandfutureworksofM。Proudhon。
"TheonlywaytoarriveattruthistogoatoncetoFirstPrinciples……
Letus……goatoncetothesourcefromwhencegovernmentsthemselveshavearisen……Bythusgoingtotheoriginofthething，weshallfindthateveryformofgovernment，andeverysocialandgovernmentalwrong，owesitsrisetotheexistingsocialsystem——totheinstitutionofpropertyasitatpresentexists——andthat，therefore，ifwewouldendourwrongsandourmiseriesatonceandforever，thepresentarrangementsofsocietymustbetotallysubverted……Bythusfightingthemupontheirownground，andwiththeirownweapons，weshallavoidthatsenselessclatterrespecting’visionaries’and’theorists’，withwhichtheyaresoreadytoassailallwhodaremoveonestepfromthatbeatentrackwhich’byauthority’，hasbeenpronouncedtobetherightone。Beforetheconclusionsarrivedatbysuchacourseofproceedingcanbeoverthrown，theeconomistsmustunsayordisprovethoseestablishedtruthsandprinciplesonwhichtheirownargumentsarefounded。"
（Bray，pp。17and41）
"Itislaboralonewhichbestowsvalue……
"EverymanhasanundoubtedrighttoallthathishonestlaborcanprocurehiM。Whenhethusappropriatesthefruitsofhislabor，hecommitsnoinjusticeuponanyotherhumanbeing;forheinterfereswithnootherman’srightofdoingthesamewiththeproduceofhislabor……
"Alltheseideasofsuperiorandinferior——ofmasterandman——maybetracedtotheneglectofFirstPrinciples，andtotheconsequentriseofinequalityofpossessions;andsuchideaswillneverbesubverted，solongasthisinequalityismaintained。Menhavehithertoblindlyhopedtoremedythepresentunnaturalstateofthings……bydestroyingexistinginequality;butitwillbeshortlyseen……thatmisgovernmentisnotacause，butaconsequence——thatitisnotthecreator，butthecreated——thatisistheoffspringofinequalityofpossessions;andthattheinequalityofpossessionsisinseparablyconnectedwithourpresentsocialsystem。"
（Bray，pp。33，36and37）
"Notonlyarethegreatestadvantages，butstrictjusticealso，onthesideofasystemofequality……Everymanisalink，inthechainofeffects——thebeginningofwhichisbutanidea，andtheend，perhaps，theproductionofapieceofcloth。Thus，althoughwemayentertaindifferentfeelingstowardstheseveralparties，itdoesnotfollowthatoneshouldbebetterpaidforhislaborthananother。Theinventorwilleverreceive，inadditiontohisjustpecuniaryreward，thatwhichgeniusonlycanobtainfromus——thetribuneofouradmiration……
"Fromtheverynatureoflaborandexchange，strictjusticenotonlyrequiresthatallexchangersshouldbemutually，butthattheyshouldlikewisebeequally，benefited。Menhaveonlytwothingswhichtheycanexchangewitheachother，namely，labor，andtheproduceoflabor……
"Ifajustsystemofexchangeswereactedupon，thevalueofarticleswouldbedeterminedbytheentirecostofproduction;andequalvaluesshouldalwaysexchangeforequalvalues。If，forinstance，ittakesahatteronedaytomakeahat，andashoemakerthesametimetomakeapairofshoes——supposingthematerialusedbyeachtobeofthesamevalue——
andtheyexchangethesearticleswitheachother，theyarenotonlymutuallybutequallybenefited：theadvantagederivedbyeitherpartycannotbeadisadvantagetotheother，aseachhasgiventhesameamountoflabor，andthematerialsmadeuseofbyeachwereofequalvalue。Butifthehattershouldobtaintwopairofshoesforonehat——timeandvalueofmaterialbeingasbefore——theexchangewouldclearlybeanunjustone。Thehatterwoulddefraudtheshoemakerofoneday’slabor;andweretheformertoactthusinallhisexchanges，hewouldreceive，forthelaborofhalfayear，theproductofsomeotherperson’swholeyear。Wehaveheretoforeacteduponnootherthanthismostunjustsystemofexchanges——theworkmenhavegiventhecapitalistthelaborofawholeyear，inexchangeforthevalueofonlyhalfayear——andfromthis，andnotfromtheassumedinequalityofbodilyandmentalpowersinindividuals，hasarisentheinequalityofwealthandpowerwhichatpresentexistsaroundus。Itisaninevitableconditioninequalityofexchanges——ofbuyingatonepriceandsellingatanother——thatcapitalistsshallcontinuetobecapitalists，andworkingmentobeworkingmen——theoneaclassoftyrantsandtheotheraclassofslaves——toeternity……
"Thewholetransaction，therefore，plainlyshewsthatthecapitalistsandproprietorsdonomorethangivetheworkingman，forhislaborofoneweek，apartofthewealthwhichtheyobtainedfromhimtheweekbefore！
——whichamountstogivinghimnothingforsomething……
"Thewholetransaction，therefore，betweentheproducerandthecapitalistisapalpabledeception，amerefarce：itis，infact，inthousandsofinstances，nootherthanabarefacedthoughlegalizedrobbery。"
（Bray，pp。45，48，49and50）
"……thegainoftheemployerwillneverceasetobethelossoftheunemployed——untiltheexchangesbetweenthepartiesareequal;andexchangesnevercanbeequalwhilesocietyisdividedintocapitalistsandproducers——thelastlivingupontheirlaborandthefirstbloatingupontheprofitofthatlabor。
"Itisplain[continuesMr。Bray]that，establishwhateverformofgovernmentwewill……wemaytalkofmoralityandbrotherlylove……
noreciprocitycanexistwherethereareunequalexchanges。Inequalityofexchanges，asbeingthecauseofinequalityofpossessions，isthesecretenemythatdevoursus。"
（Bray，pp。51and52）
"Ithasbeendeduced，also，fromaconsiderationoftheintentionandendofsociety，notonlythatallmenshouldlabor，andtherebybecomeexchangers，butthatequalvaluesshouldalwaysexchangeforequalvalues——andthat，asthegainofonemanoughtnevertobethelossofanother，valueshouldbedeterminedbycostofproduction。butwehaveseen，that，underthepresentarrangementsofsociety……thegainofthecapitalistandtherichmanisalwaysthelossoftheworkman——thatthisresultwillinvariablytakeplace，andthepoormanbeleftentirelyatthemercyoftherichman，underanyandeveryformofgovernment，solongasthereisinequalityofexchanges——andthatequalityofexchangescanbeensuredonlyundersocialarrangementsinwhichlaborisuniversal……
"Ifexchangeswereequal，wouldthewealthofthepresentcapitalistsgraduallygofromthemtotheworkingclasses。"
（Bray，pp。53—55）
"Solongasthissystemofunequalexchangesistolerated，theproducerswillbealmostaspoorandasignorantandashardworkedastheyareatpresent，evenifeverygovernmentalburthenbesweptawayandalltaxesbeabolished……nothingbutatotalchangeofthissystem——anequalityoflaborandexchanges——canalterthisstateofrights……
"Theproducershavebuttomakeaneffort——andbythemmusteveryeffortfortheirownredemptionbemade——andtheirchainswillbesnappedasunderforever……
"Asanend，thepoliticalequalityisthereafailure，asameans，also，itisthereafailure。
"Whereequalexchangesaremaintained，thegainofonemancannotbethelossofanother;foreveryexchangeisthensimplyatransfer，andnotasacrificeoflaborandwealth。Thus，althoughunderasocialsystembasedonequalexchanges，aparsimoniousmanmaybecomerich，hiswealthwillbenomorethantheaccumulatedproduceofhisownlabor。Hemayexchangehiswealth，orhemaygiveittoothers……butarichmancannotcontinuewealthyforanylengthoftimeafterhehasceasedtolabor。Underequalityofexchanges，wealthcannothave，asitnowhas，aprocreativeandapparentlyself—generatingpower，suchasreplenishesallwastefromconsumption;
for，unlessitberenewedbylabor，wealth，whenonceconsumed，isgivenupforever。Thatwhichisnowcalledprofitandinterestcannotexistassuchinconnectionwithequalityofexchanges;forproduceranddistributorwouldbealikeremunerated，andthesumtotaloftheirlaborwoulddeterminethevalueofthearticlecreatedandbroughttothehandsoftheconsumer……
"Theprincipleofequalexchanges，therefore，mustfromitsverynatureensureuniversallabor。"
（Bray，pp。67，88，89，94，109—10）
Afterhavingrefutedtheobjectionsoftheeconomiststocommunism，Mr。
Braygoesontosay：
"If，thenachangedcharacterbeessentialtothesuccessofthesocialsystemofcommunityinitsmostperfectform——andif，likewise，thepresentsystemaffordsnocircumstancesandnofacilitiesforeffectingtherequisitechangeofcharacterandpreparingmanforthehigherandbetterstatedesired——itisevidentthatthesethingsmustnecessarilyremainastheyare……
orelsesomepreparatorystepmustbediscoveredandmadeuseof——somemovementpartakingpartlyofthepresentandpartlyofthedesiredsystem——someintermediaterestingplace，towhichsocietymaygowithallitsfaultsanditsfollies，andfromwhichitmaymoveforward，imbuedwiththosequalitiesandattributeswithoutwhichthesystemofcommunityandequalitycannotassuchhaveexistence。"
（Bray，p。134）
"Thewholemovementwouldrequireonlyco—operationinitssimplestform……Costofproductionwouldineveryinstancedeterminevalue;andequalvalueswouldalwaysexchangeforequalvalues。Ifonepersonworkedawholeweek，andanotherworkedonlyhalfaweek，thefirstwouldreceivedoubletheremunerationofthelast;butthisextrapayoftheonewouldnotbeattheexpenseoftheother，norwouldthelossincurredbythelastmanfallinanywayuponthefirst。Eachpersonwouldexchangethewagesheindividuallyreceivedforcommoditiesofthesamevalueashisrespectivewages;andinnocasecouldthegainofonemanoronetradebealosstoanothermanoranothertrade。Thelaborofeveryindividualwouldalonedeterminedhisgainsofhislosses……
"……Bymeansofgeneralandlocalboardsoftrade……thequantititiesofthevariouscommoditiesrequiredforconsumption——therelativevalueofeachinregardtoeachother——thenumberofhandsrequiredinvarioustradesanddescriptionsoflabor——andallothermattersconnectedwithproductionanddistribution，couldinashorttimebeaseasilydeterminedforanationasforanindividualcompanyunderthepresentarrangements……
"Asindividualscomposefamilies，andfamiliestowns，undertheexistingsystem，solikewisewouldtheyafterthejoint—stockchangehadbeeneffected。Thepresentdistributionofpeopleintownsandvillages，badasitis，wouldnotbedirectlyinterferedwith……
"Underthisjoint—stocksystem，thesameasunderthatnowexisting，everyindividualwouldbeatlibertytoaccumulateasmuchashepleased，andtoenjoysuchaccumulationswhenandwherehemightthinkproper……
"Thegreatproductivesectionofthecommunity……isdividedintoanindefinitenumberofsmallersections，allworking，producingandexchangingtheirproductsonafootingofthemostperfectequality……
"Andthejoint—stockmodification（whichisnothingbutaconcessiontopresent—daysocietyinordertoobtaincommunism），bybeingsoconstitutedastoadmitofindividualpropertyinproductionsinconnectionwithacommonpropertyinproductivepowers——makingeveryindividualdependentonhisownexertions，andatthesametimeallowinghimanequalparticipationineveryadvantageaffordedbynatureandart——isfittedtotakesocietyasitis，andtopreparethewayforotherandbetterchanges。"
（Bray，pp。158，160，162，168and194）
WenowonlyneedtoreplyinafewwordstoMr。BraywhowithoutusandinspiteofushadmanagedtosupplantM。Proudhon，exceptthatMr。Bray，farfromclaimingthelastwordonbehalfofhumanity，proposesmerelymeasureswhichhethinkgoodforaperiodoftransitionbetweenexistingsocietyandacommunityregime。
OnehourofPeter’slaborexchangesforonehourofPaul’slabor。
ThatisMr。Bray’sfundamentalaxiom。
LetussupposePeterhas12hours’laborbeforehim，andPaulonlysix。Peterwillconsequentlyhavesixhours’laborleftover。Whatwillhedowiththesesixhours’labor？
Eitherhewilldonothingwiththem——inwhichcasehewillhaveworkedsixhoursfornothing;orelsehewillremainidleforanothersixhourstogeteven;orelse，asalastresource，hewillgivethesesixhours’labor，whichhehasnousefor，toPaulintothebargain。
WhatintheendwillPeterhaveearnedmorethanPaul？Somehoursoflabor？No！Hewillhavegainedonlyhoursofleisure;hewillbeforcedtoplaytheloaferforsixhours。Andinorderthatthisnewrighttoloafmightbenotonlyrelishedbutsoughtafterinthenewsociety，thissocietywouldhavetofindinidlenessitshighestbliss，andtolookuponlaborasaheavyshacklefromwhichitmustbreakfreeatallcosts。
Andindeed，toreturntoourexample，ifonlythesehoursofleisurethatPeterhadgainedinexcessofPaulwerereallyagain！Notintheleast。Paul，beginningbyworkingonlysixhours，attainsbysteadyandregularworkaresultthatPetersecuresonlybybeginningwithanexcessofwork。EveryonewillwanttobePaul，therewillbeacompetitiontooccupyPaul’sposition，acompetitioninidleness。
Well，then！Whathastheexchangeofequalquantitiesoflaborbroughtus？Overproduction，depreciation，excessoflaborfollowedbyunemployment;
inshort，economicrelationssuchasweseeinpresent—daysociety，minusthecompetitionoflabor。
No！Wearewrong！TheseisstillanexpedientwhichmaysavethisnewsocietyofPetersandPauls。Peterwillconsumebyhimselftheproductofthesixhours’laborwhichhehasleft。Butfromthemomenthehasnolongertoexchangebecausehehasproduced，hehasnoneedtoproduceforexchange;andthewholehypothesisofasocietyfoundedontheexchangeanddivisionoflaborwillfalltotheground。Equalityofexchangewillhavebeensavedbythesimplefactthatexchangewillhaveceasedtobe：
PaulandPeterwouldarriveatthepositionofRobinson。
Thus，ifallthemembersofsocietyaresupposedtobeactualworkers，theexchangeofequalquantitiesofhoursoflaborispossibleonlyonconditionthatthenumberofhourstobespentonmaterialproductionisagreedonbeforehand。Butsuchanagreementnegatesindividualexchange。
Westillcometothesameresult，ifwetakeasourstartingpointnotthedistributionoftheproductscreatedbuttheactofproduction。
Inlarge—scaleindustry，Peterisnotfreetofixforhimselfthetimeofhislabor，forPeter’slaborisnothingwithouttheco—operationofallthePetersandallthePaulswhomakeuptheworkshop。ThisexplainsverywellthedoggedresistancewhichtheEnglishfactoryownersputuptotheTenHours’Bill。Theyknewonlytoowellthatatwo—hours’reductionoflaborgrantedtowomenandchildren[5]wouldcarrywithitanequalreductionofworkinghoursforadultmen。Itisinthenatureoflarge—scaleindustrythatworkinghoursshouldbeequalforall。
Whatistodaytheresultofcapitalandthecompetitionofworkersamongthemselveswillbetomorrow，ifyousevertherelationbetweenlaborandcapital，anactualagreementbasedupontherelationbetweenthesumofproductiveforcesandthesumofexistingneeds。
Butsuchanagreementisacondemnationofindividualexchange，andwearebackagainatourfirstconclusion！
Inprinciple，thereisnoexchangeofproducts——butthereistheexchangeofthelaborwhichco—operatedinproduction。Themodeofexchangeofproductsdependsuponthemodeofexchangeoftheproductiveforces。Ingeneral，theformofexchangeofproductscorrespondstotheformofproduction。Changethelatter，andtheformerwillchangeinconsequence。
Thusinthehistoryofsocietyweseethatthemodeofexchangingproductsisregulatedbythemodeofproducingthem。IndividualexchangecorrespondsalsotoadefinitemodeofproductionwhichitselfcorrespondstoclassantagonisM。Thereisthusnoindividualexchangewithouttheantagonismofclasses。
Buttherespectableconsciencerefusestoseethisobviousfact。
Solongasoneisabourgeois，onecannotbutseeinthisrelationofantagonismarelationofharmonyandeternaljustice，whichallowsnoonetogainattheexpenseofanother。Forthebourgeois，individualexchangecanexistwithoutanyantagonismofclasses。Forhim，thesearetwoquiteunconnectedthing。Individualexchange，asthebourgeoisconceivesit，isfarfromresemblingindividualexchangeasitactuallyexistsinpractice。
Mr。Brayturnstheillusionoftherespectablebourgeoisintoanidealhewouldliketoattain。Inapurifiedindividualexchange，freedfromalltheelementsofantagonismhefindsinit，heseesan"equalitarian"
relationwhichhewouldlikesocietytoadoptgenerally。
Mr。Braydoesnotseethatthisequalitarianrelation，thiscorrectiveidealthathewouldliketoapplytotheworld，isitselfnothingbutthereflectionoftheactualworld;andthatthereforeitistotallyimpossibletoreconstitutesocietyonthebasisofwhatismerelyanembellishedshadowofit。Inproportionasthisshadowtakesonsubstanceagain，weperceivethatthissubstance，farfrombeingthetransfigurationdreamtof，istheactualbodyofexistingsociety。[6]
3。
APPLICATIONOFTHE
LAWOFTHEPROPORTIONALITYOFVALUE
A）Money"Goldandsilverwerethefirstcommoditiestohavetheirvalueconstituted。"
[I69]
Thus，goldandsilverarethefirstapplicationsof"valueconstituted"……byM。Proudhon。AndasM。Proudhonconstitutesthevalueofproductsdeterminingitbythecomparativeamountoflaborembodiedinthem，theonlythinghehadtodowastoprovethatvariationsinthevalueofgoldandsilverarealwaysexplainedbyvariationsinthelabortimetakentoproducethem。M。Proudhonhasnointentionofdoingso。Hespeaksofgoldandsilvernotascommodities，butasmoney。
Hisonlylogic，iflogicitbe，consistsinjugglingwiththecapacityofgoldandsilvertobeusedasmoneyforthebenefitofallthecommoditieswhichhavethepropertyofbeingevaluatedbylabortime。
Decidedlythereismorenaivetethanmaliceinthisjugglery。
Ausefulproduct，onceithasbeenevaluatedbythelabortimeneededtoproduceit，isalwaysacceptableinexchange;witness，criesM。Proudhon，goldandsilver，whichexistinmydesiredconditionsof"exchangeability"！
Goldandsilver，then，arevaluewhichhasreachedastateofconstitution：
theyaretheincorporationofM。Proudhon’sidea。Hecouldnothavebeenhappierinhischoiceofanexample。Goldandsilver，apartfromtheircapacityofbeingcommodities，evaluatedlikeothercommodities，inlabortime，havealsothecapacityofbeingtheuniversalagentsofexchange，ofbeingmoney。Bynowconsideringgoldandsilverasanapplicationof"valueconstituted"bylabortime，nothingiseasierthantoprovethatallcommoditieswhosevalueisconstitutedbylabortimewillalwaysbeexchangeable，willbemoney。
AverysimplequestionoccurstoM。Proudhon。Whyhavegoldandsilvertheprivilegeoftypifying"constitutedvalue"？
"Thespecialfunctionwhichusagehasdevolveduponthepreciousmetal，thatofservingasamediumfortrade，ispurelyconventional，andanyothercommoditycould，lessconvenientlyperhaps，butjustasreliably，fulfilthisfunction。Economistsrecognizethis，andcitemorethanoneexample。Whatthenisthereasonforthisuniversalpreferenceformetalsasmoney？Andwhatistheexplanationofthisspecializationofthefunctionofmoney——whichhasnoanalogyinpoliticaleconomy？……Isitpossibletoreconstructtheseriesfromwhichmoneyseemstohavebrokenaway，andhencetotraceitbacktoitstrueprinciple？"
[I68—69]
Straightaway，byformulatingthequestionintheseterms，M。Proudhonhaspresupposedtheexistenceofmoney。Thefirstquestionheshouldhaveaskedhimselfwas，why，inexchangesastheyareactuallyconstituted，ithasbeennecessarytoindividualizeexchangeablevalue，sotospeak，bythecreationofaspecialagentofexchange。Moneyisnotathing，itisasocialrelation。Whyisthemoneyrelationaproductionrelationlikeanyothereconomicrelation，suchasthedivisionoflabor，etc。？IfM。
Proudhonhadproperlytakenaccountofthisrelation，hewouldnothaveseeninmoneyanexception，anelementdetachedfromaseriesunknownorneedingreconstruction。
Hewouldhaverealized，onthecontrary，thatthisrelationisalink，and，assuch，closelyconnectedwithawholechainofothereconomicrelations;thatthisrelationcorrespondstoadefinitemodeofproductionneithermorenorlessthandoesindividualexchange。Whatdoeshedo？Hestartsoffbydetachingmoneyfromtheactualmodeofproductionasawhole，andthenmakesitthefirstmemberofanimaginaryseries，ofaseriestobereconstructed。
Oncethenecessityforaspecificagencyofexchange，thatis，formoney，hasbeenrecognized，allthatremainstobeexplainediswhythisparticularfunctionhasdevelopedupongoldandsilverratherthanuponanycommodity。Thisisasecondaryquestion，whichisexplainednotbythechainofproductionrelations，butbythespecificqualitiesinherentingoldandsilverassubstances。Ifallthishasmadeeconomistsforonce"gooutsidethedomainsoftheirownscience，todabbleinphysics，mechanics，historyandsoon"，asM。Proudhonreproachesthemwithdoing，theyhavemerelydonewhattheywerecompelledtodo。Thequestionwasnolongerwithinthedomainofpoliticaleconomy。
"Whatnoeconomist，"saysM。Proudhon，"haseitherseenorunderstoodistheeconomicreasonwhichhasdetermined，infavorofthepreciousmetals，thefavortheyenjoy。"
[I69]
Thiseconomicreasonwhichnobody——withgoodgroundindeed——hasseenofunderstood，M。Proudhonhasseen，understoodandbequeathedtoposterity。
"Whatnobodyelsehasnoticedisthat，ofallcommodities，goldandsilverwerethefirsttohavetheirvalueattainconstitution。Inthepatriarchalperiod，goldandsilverwerestillbarteredandexchangediningotsbuteventhentheyshowedavisibletendencytobecomedominantandreceivedamarkeddegreeofpreference。Littlebylittlethesovereignstookpossessionofthemandaffixedtheirsealtothem：andofthissovereignconsecrationwasbornmoney，thatis，thecommodityparexcellence。which，notwithstandingalltheshocksofcommerce，retainsadefiniteproportionalvalueandmakesitselfacceptedforallpayments……
"Thedistinguishingcharacterofgoldandsilverisdue，Irepeat，tothefactthat，thankstotheirmetallicproperties，tothedifficultiesoftheirproduction，andabovealltotheinterventionofstateauthority，theyearlywonstabilityandauthenticityascommodities。"
Tosaythat，ofallcommodities，goldandsilverwerethefirsttohavetheirvalueconstituted，istosay，afterallthathasgonebefore，thatgoldandsilverwerethefirsttoattainthestatusofmoney。ThisisM。
Proudhon’sgreatrevelation，thisisthetruththatnonehaddiscoveredbeforehim。
If，bythesewords，M。Proudhonmeansthatofallcommodities，goldandsilveraretheoneswhosetimeofproductionwasknowntheearliest，thiswouldbeyetanotherofthesuppositionswithwhichheissoreadytoregalehisreaders。Ifwewishedtoharponthispatriarchalerudition，wewouldinformM。Proudhonthatitwasthetimeneededtoproduceobjectsofprimenecessity，suchasiron，etc。，whichwasthefirsttobeknown。
WeshallsparehimAdamSmith’sclassicbow。
But，afterallthat，howcanM。Proudhongoontalkingabouttheconstitutionofavalue，sinceavalueisneverconstitutedbyitself？
Itisconstituted，notbythetimeneededtoproduceitbyitself，butinrelationtothequotaofeachandeveryotherproductwhichcanbecreatedinthesametime。Thustheconstitutionofthevalueofgoldandsilverpresupposesanalreadycompletedconstitutionofanumberofotherproducts。
Itisthennotthecommoditythathasattained，ingoldandsilver，thestatusof"constitutedvalue"，itisM。Proudhon’s"constitutedvalue"
thathasattained，ingoldandsilver，thestatusofmoney。
Letusnowmakeacloserexaminationofthese"economicreasons"
which，accordingtoM。Proudhon，havebestowedupongoldandsilvertheadvantageofbeingraisedtothestatusofmoneysoonerthanotherproducts，thankstotheirhavingpassedthroughtheconstitutivephaseofvalue。
Theseeconomicreasonsare：the"visibletendencytobecomedominant"，the"markedpreferences"eveninthe"patriarchalperiod"，andothercircumlocutionsabouttheactualfact——whichincreasethedifficulty，sincetheymultiplythefactbymultiplyingtheincidentswhichM。Proudhonbringsintoexplainthefact。M。Proudhonhasnotyetexhaustedalltheso—calledeconomicreasons。Hereisoneofsovereign，irresistibleforce：
"Moneyisbornofsovereignconsecration：thesovereignstakepossessionofgoldandsilverandaffixtheirsealtothem。"
[I69]
Thus，thewhimofsovereignsisforM。Proudhonthehighestreasoninpoliticaleconomy。
Truly，onemustbedestituteofallhistoricalknowledgenottoknowthatitisthesovereignswhoinallageshavebeensubjecttoeconomicconditions，buttheyhaveneverdictatedlawstotheM。Legislation，whetherpoliticalorcivil，neverdoesmorethanproclaim，expressinwords，thewillofeconomicrelations。
Wasitthesovereignwhotookpossessionofgoldandsilvertomakethemtheuniversalagentsofexchangebyaffixinghissealtothem？
Orwasitnot，rather，theseuniversalagentsofexchangewhichtookpossessionofthesovereignandforcedhimtoaffixhissealtothemandthusgivethemapoliticalconsecration？
Theimpresswhichwasandisstillgiventomoneyisnotthatofitsvaluebutofitsweight。ThestabilityandauthenticityM。Proudhonspeaksofapplyonlytothestandardofthemoney;andthisstandardindicateshowmuchmetallicmatterthereisinacoinedpieceofmoney。
"Thesoleintrinsicvalueofasilvermark，"saysVoltaire，withhishabitualgoodsense，"isamarkofsilver，halfapoundweighingeightounces。Theweightandthestandardaloneformthisintrinsicvalue。"
（Voltaire，SystemedeLaw）
[MarxquotesachapterfromVoltaire’sHistoriedeparlement。Itisentitled"FranceinthePeriodoftheRegencyandLaw’sSystem"。]
Butthequestion：howmuchisanounceofgoldorsilverworth，remainsnonetheless。IfacashmerefromtheGrandColbertstoresborethetrademarkpurewool，thistrademarkwouldnottellyouthevalueofthecashmere。Therewouldstillremainthequestion：howmuchiswoolworth？