THE TURNOVER OF CAPITAL
THE TIME OF CIRCULATIONAll circumstances considered so far which distinguish the periods of turnover of different capitals invested in different branches of industry and hence also the periods for which capital must be advanced, originate in the process of production itself, such as the difference between fixed and circulating capital, the difference in the working periods, etc. But the time of turnover of capital is equal to the sum of it production time plus its circulation, or rotation, time. It is therefore a matter of course that a difference in the time of circulation causes a difference in the time of turnover and hence in the length of the period of turnover. This becomes more evident either on comparing two different investments of capital in which all circumstances modifying the turnover are equal except the time of circulation, or on selecting a given capital with a given proportion of fixed and circulating capital, a given working period, etc., with only the times of circulation varying, hypothetically.
One of the sections of the time of circulation -- relatively the most decisive -- consists of the time of selling, the period during which capital exists in the state of commodity-capital. The time of circulation, and hence the period of turnover in general, are long or short depending on the relative length of this selling time. An additional outlay of capital may become necessary as a result of expenses of storage, etc. It is clear at the very start that the time required for the sale of finished goods may differ considerably for the individual capitalists in one and the same branch of industry. Hence it may differ not only for the aggregate capitals invested in the various branches of industry, but also for the various independent capitals, which are in fact merely parts of the aggregate capital invested in the same sphere of production but which have made themselves independent. Other circumstances remaining equal, the period of selling will vary for the same individual capital with the general fluctuations of the market or with its fluctuations in that particular line of business.
We shall not dwell on this point any longer. We merely state this simple fact: All circumstances which in general give rise to differences in the periods of turnover of the capitals invested in different branches of industry bring in their train differences also in the turnover of the various individual capitals operating in the same business, provided these circumstances operate individually (for instance, if one capitalist has an opportunity to sell more rapidly than his competitor, if one employs more methods shortening the working periods than the other, etc.)One cause which acts permanently in differentiating the times of selling, and thus the periods of turnover in general, is the distance of the market in which a commodity is sold from its place of production.
During the entire trip to the market, capital finds itself fettered in the state of commodity-capital. If goods are made to order, up to the time of delivery; if they are not made to order, there must be added to the time of the trip to the market the time during which the goods are in the market waiting to be sold. The improvement of the means of communication and transportation cuts down absolutely the wandering period of the commodities but does not eliminate the relative difference in the time of circulation of different commodity-capitals arising from their peregrinations, nor that of different portions of the same commodity-capital which migrate to different markets. For instance the improved sailing vessels and steamships, which shorten travelling, do so equally for near and distant ports. The relative difference remains, although often diminished. But the relative difference may be shifted about by the development of the means of transportation and communication in a way that does not correspond to the geographical distances. For instance a railway which leads from a place of production to an inland centre of population may relatively or absolutely lengthen the distance to a nearer inland point not connected by rail, as compared to the one which geographically is more remote. In the same way the same circumstances may alter the relative distance of places of production from the larger markets, which explains the deterioration of old and the rise of new centres of production because of changes in communication and transportation facilities. (To this must be added the circumstances that long hauls are relatively cheaper than short ones.) Moreover with the development of transport facilities not only is the velocity of movement in space accelerated and thereby the geographic distance shortened in terms of time. Not only is there a development of the mass of communication facilities so that for instance many vessels sail simultaneously for the same port, or several trains travel simultaneously on different railways between the same two points, but freight vessels may clear on consecutive days of the same week from Liverpool for New York, or goods trains may start at different hours of the same day from Manchester to London. True, the absolute velocity -- hence this part of the time of circulation -- is not altered by this latter circumstance, a certain definite capacity of the means of transportation being given. But successive shipments of commodities can start their passage at shorter intervals of time and thus reach the market one after another without accumulating in large quantities as potential commodity-capital before actual shipment. Hence the return of capital likewise is distributed over shorter successive periods of time, so that a part is continually transformed into money-capital, while the other circulates as commodity-capital.
