The Subject of Capital, Book II, "The Process of Circulation of Capital" : a Consideration on Process of Formation of Capital

Abstract

The subject of Capital, book II, "The Process of Circulation of Capital" is hitherto regarded on one side as the circulation process proper, and on the other side as the circular movement of capital which includes production and circulation. These two opinions have been opposed each other, in Japan. We stand by the latter basically, but we think it contains a weakness in it. Because it lumps production process with circulation process, so that the concept of circulation is obscure. Well, we believe we can solve this problem by inquiring into the process of formation of Capital. The theory of the circulation in Grundrisse (1857〜1858) was influenced by Adam Smith's category of "fixed capital" and "circulating capital", accordingly the process of circulation and the process of moving in circuits were jumbled together. In the manuscript (1861〜1863), Marx analyzed machinery in the direct process of production, based on the two-fold nature of labour. It laid a foundation for the Marxian economic system. On that foundation, Marx studied directly the reproduction of the aggregate social capital, without the investigation of the metamorphoses and turnover of capital. Therefore, between Grundrisse and Ms. (1861〜1863), we presume, there is a fault or a dislocation. This fault was repaired when the theory of "the metamorphoses of capital and their circuits" is almost carried out. In Capital, the subject of "The process of Circulation of Capital" is the circular movement of capital. But the term of "circulation" only means the circulation process proper. Capital's movement in circuits is the unity of circulation and production. And the process of reproduction of capital comprises the direct process of production as well as the circulation process proper.