But if the capital of £500 were regularly interrupted in its productive activity by a 5-week circulation time, so that it would again become capable of production only after the close of the entire 10-week turnover period, we should have 5 turnovers of ten weeks each in the 50weeks of the year. These would comprise five 5-week periods of production, or a sum of 25 productive weeks with a total product worth 5 times £500or £2,500, and five 5-week periods of circulation, or a total circulation time of likewise 25 weeks. If we say in this case that the capital of £500has been turned over 5 times in the year, it will be clear and obvious that during half of each period of turnover this capital of £500did not function at all as a production capital and that, all in all, it performed its functions only during one half of the year, but did not function at all during the other half.
In our illustration the replacement capital of £500 appears on the scene during those five periods of circulation and the turnover is thus expanded from £2,500 to £5,000. But now the advanced capital is £1,000 instead of £500. 5,000 divided by 1,000 is 5. Hence, there are five turnovers instead of ten. And that is just the way people figure. But when it is said that the capital of £1,000has been turned over five times during the year, the recollection of the time of circulation disappears from the hollow skulls of the capitalists and a confused idea is formed that this capital has served continuously in the production process curing the five successive turnovers. But if we say that the capital of £1,000 has been turned over five times this includes both the time of circulation and the time of production.
Indeed, if £1,000 had really been continuously active in the process of production, the product would, according to our assumptions, have to be £10,000 instead of £50,000. But in order to have £1,000continuously in the process of production, £2,000 would have to be advanced. The economists, who as a general rule have nothing clear to say in reference to the mechanism of the turnover, always overlook this main point, to wit, that only a part of the industrial capital can actually be engaged in the process of production if production is to proceed uninterruptedly.
While one part is in the period of production, another must always be in the period of circulation. Or in other words, one part can perform the function of productive capital only on condition that another part is withdrawn from production proper in the form of commodity- or money-capital. In overlooking this, the significance and role of money-capital is entirely ignored.
We have now to ascertain what differences in the turnover arise if the two sections of the period of turnover, the working period and the circulation period, are equal, or if the working period is greater or smaller than the circulation period, and, furthermore, what effect this has on the tie-up of capital in the form of money-capital.
We assume the capital advanced weekly to be in all cases £100, and the period of turnover 9 weeks, so that the capital to be advanced in each period of turnover is £900.
I. THE WORKING PERIOD EQUAL TO THE CIRCULATION PERIODAlthough this case occurs in reality only as an accidental exception, it must serve as our point of departure in this investigation, because here relations shape themselves in the simplest and most intelligible way.
The two capitals (capital I advanced for the first working period, and supplemental capital II, which functions during the circulation period of capital I) relieve one another in their movements without crossing.
With the exception of the first period, either of the two capitals is therefore advanced only for its own period of turnover. Let the period of turnover be 9 weeks, as indicated in the following illustrations, so that the working period and the circulation period are each 4 1/2 weeks. Then we have the following annual diagram.
T a b l e I C A P I T A L I
Periods of Turnover Working Periods AdvancePeriods of Circulation I. 1st- 9th week II. 10th-18th "III. 19th-27th "
IV. 28th-36th "
V. 37th-45th "
VI. 46th-[54th] " 1st- 4th 1/2 week 10th-13th 1/2 "19th-22nd 1/2 "
28th-31st 1/2 "
37th-40th 1/2 "
46th-49th 1/2 " £450
£450
£450
£450
£450
£450 4th 1/2- 9th week 13th 1/2-18th "22nd 1/2-27th "
31st 1/2-36th "
40th 1/2-45th "
49th 1/2-[54th] " [31]C A P I T A L I IPeriods of Turnover Working Periods AdvancePeriods of Circulation I. 1st- 9th week II. 10th-18th "III. 19th-27th "
IV. 28th-36th "
V. 37th-45th "
VI. 46th-[54th] "4th 1/2- 9th week 13th 1/2-18th "22nd 1/2-27th "
31st 1/2-36th "
40th 1/2-45th "
49th 1/2-[54th] " £450
£450
£450
£450
£450
£45010th-13th 1/2 week 19th-22nd 1/2 "28th-31st 1/2 "
37th-40th 1/2 "
46th-49th 1/2 "