We find, then, that in the given case, where the working period has been assumed to be greater than the circulation period, a money-capital will at all events have been set free at the close of each working period, which is of the same magnitude as capital II advanced for the circulation period. In our three illustrations capital II was £300 in the first, £400 in the second, and £200 in third. Accordingly, the capital set free at the close of each working period was £300, £400and £200 respectively.
III. THE WORKING PERIOD SMALLER THAN THE CIRCULATION PERIODWe begin by assuming once more a period of turnover of 9 weeks, of which 3 weeks are assigned to the working period with an available capital Iof £300. Let the circulation period be 6 weeks. For these 6 weeks, an additional capital of £600 is required, which we may divide in turn into two capitals of £300, each of them meeting the requirements of one working period. We then have three capitals of £300 each, of which £300 are always engaged in production, while £600circulate.
T a b l e I I I C A P I T A L I
Periods of Turnover Working PeriodsPeriods of Circulation I. 1st- 9th week II. 10th-18th "III. 19th-27th "
IV. 28th-36th "
V. 37th-45th "
VI. 46th-[54th] "1st- 3rd week 10th-12th "19th-21st "
28th-30th "
37th-39th "
46th-48th "4th- 9th week 13th-18th "22nd-27th "
31st-36th "
40th-45th "
49th-[54th] "C A P I T A L I I
Periods of Turnover Working PeriodsPeriods of Circulation I. 4th-12th week II. 13th-21st "III. 22nd-30th "
IV. 31st-39th "
V. 40th-48th "
VI. 49th-[57th] " 4th- 6th week 13th-15th "22nd-24th "
31st-33rd "
40th-42nd "
49th-51st "7th-12th week 16th-21st "25th-30th "
34th-39th "
43rd-48th "
51st-[57th] "C A P I T A L I I I
Periods of Turnover Working PeriodsPeriods of Circulation I. 7th-15th week II. 16th-24th "III. 25th-33rd "
IV. 34th-42nd "
V. 43rd-51st "7th- 9th week 16th-18th "25th-27th "
34th-36th "
43rd-45th " 10th-15th week 19th-24th "28th-33rd "
37th-42nd "
46th-51st " We have here the exact counterpart of Case I, with the only difference that now three capitals relieve one another instead of two. There is no intersection or intertwining of capitals. Each one of them can be traced separately to the end of the year. Just as in Case I, no capital is set free at the close of a working period, Capital I is completely laid out at the end of the 3rd week, returns entirely at the end of the 9th, and resumes its functions at the beginning of the 10th week. Similarly with capitals II and III. The regular and complete relief excludes any release of capital.
The total turnover is as follows:
capital I, £300 times 5 2/3, or £1,700 capital II, £300 times 5 1/3, or £1,600 capital III, £300 times 5, or £1,500 ------------------------------------------ Total capital, £900 times 5 1/3, or £4,800Let us now also take an illustration in which the circulation period is not an exact multiple of the working period. For instance, working period -- 4 weeks, circulation period -- 5 weeks. The corresponding amounts of capital would then be: capital I -- £400; capital II -- £400;capital III -- £100. We present only the first three turnovers.
T a b l e I V C A P I T A L I
Periods of Turnover Working Periods Periods of Circulation I. 1st- 9th week II. 9th-17th "III. 18th-25th "1st- 4th week 9. 10th-12th "17. 18th-20th " 5th- 9th week 13th-17th "21st-25th "C A P I T A L I I
Periods of Turnover Working Periods Periods of Circulation I. 5th-13th week II. 13th-21st "III. 21st-29th " 5th- 8th week 13. 14th-16th "21. 22nd-24th "9th-13th week 17th-21st "25th-29th "C A P I T A L I I I
Periods of Turnover Working PeriodsPeriods of Circulation I. 9th-17th week II. 17th-25th "III. 25th-33rd " 9th week 17th "25th " 10th-17th week 18th-25th "26th-33rd " There is in this case an intertwining of capitals in so far as the working period of capital II, which has no independent working period, because it suffices for only one week, coincides with the first working week of capital I. On the other hand an amount of £100, equal to capital III, is set free at the close of the working period of both capital I and II. For if capital III fills up the first week of the second and all succeeding working periods of capital I and £400, the entire capital I, return at the close of this first week, then only 3 weeks and a corresponding capital investment of £300 will remain for the rest of the working period of capital I. The £200 thus set free suffice for the first week of the immediately following working period of capital II; at the end of that week the entire capital II of £400 returns. But since the working period already started can absorb only another £300, £100 are once more disengaged at its close. And so forth. We have, then, a release of capital at the close of a working period whenever the circulation period is not a simple multiple of the working period. And this liberated capital is equal to that portion of the capital which has to fill up the excess of the circulation period over the working period or over a multiple of working periods.
In all cases investigated it was assumed that both the working period and the circulation period remain the same throughout the year in any of the businesses here examined. This assumption was necessary if we wished to ascertain the influence of the time of circulation on the turnover and advancement of capital. That in reality this assumption is not so unconditionally valid, and that it frequently is not valid at all does not alter the case in the least.
