Apart from this, the circuit of money -- that is, the return of money to its point of departure -- being a phase of the turnover of capital, is a phenomenon entirely differently from, and even the opposite of, the currency of money , [33] which expresses its steady departure from the starting-point by changing hands again and again. (Buch I, S. 94.) [English edition: pp. 114-15. -- Ed .] Nevertheless, an accelerated turnover implies eo ipso an accelerated currency.
First concerning the variable capital: If a certain money-capital of, say, £500 is turned over the form of variable capital ten times a year, it is evident that this aliquot part of the quantity of money in circulation circulates ten times its value, or £5,000. It circulates ten times a year between the capitalist and the labourer. The labourer is paid, and pays, ten times a year with the same aliquot part of the circulating quantity of money. If the same variable capital were turned over only once a year, the scale of production remaining the same, there would be only one capital turnover of £5,000.
Furthermore: Let the constant portion of the circulating capital be equal to £1,000. If the capital is turned over ten times, the capitalist sells his commodity, and therefore also the constant circulating portion of its value, ten times a year. The same aliquot part of the circulating quantity of money (equal to £1,000) passes ten times per annum from the hands of its owners into those of the capitalist. This money changes hands ten times. Secondly, the capitalist buys means of production ten times a year. This again makes ten circulations of money from one hand into another. With a sum of money amounting to £1,000, the industrial capitalist sells £10,000 worth of commodities, and again buys £10,000worth of commodities. By means of 20 circulations of £1,000 in money a commodity-supply of £20,000 is circulated.
Finally, with an acceleration of the turnover, the portion of money with realises the surplus-value also circulates faster.
But, conversely, an acceleration of money-circulation does not necessarily imply a more rapid turnover of capital, and therefore of money;that is, it does not necessarily imply a contraction and more rapid renewal of the reproduction process.
A more rapid circulation of money takes place whenever a larger number of transactions are performed with the same amount of money. This may also take place under the same periods of capital reproduction as a result of changes in the technical facilities for the circulation of money.
Furthermore, there may be an increase in the number of transactions in which money circulates without representing actual exchanges of commodities (marginal transactions on the stock- exchange, etc.). On the other hand some circulations of money may be entirely eliminated, as for instance where the agriculturist is himself a landowner, there is no circulation of money between the farmer and the landlord; where the industrial capitalist is himself the owner of the capital, there is no circulation of money between him and the creditors.
As for the primitive formation of a money-hoard in a country, and its appropriation by a few, it is unnecessary to discuss it in detail at this point.
The capitalist mode of production -- its basis being wage-labour, the payment of the labourer in money, and in general the transformation of payments in kind into money payments -- can assume greater dimensions and achieve greater perfection only where there is available in the country a quantity of money sufficient for circulation and the formation of a hoard (reserve fund, etc.) promoted by it. This is the historical premise, although it is not to be taken to mean that first a sufficient hoard is formed and then capitalist production begins. It develops simultaneously with the development of the conditions necessary for it, and one of these conditions is a sufficient supply of precious metals. Hence the increased supply of precious metals since the sixteenth century is an essential element in the history of the development of capitalist production. But so far as the necessary further supply of money material on the basis of capitalist production is concerned, we see surplus-value incorporated in products thrown into circulation without the money required for their conversion into money, on the one hand, and on the other surplus-value in the form of gold without previous transformation of products into money.
The additional commodities to be converted into money find the necessary amount of money at hand, because on the other side additional gold (and silver) intended for conversion into commodities is thrown into circulation, not by means of exchange, but by production itself.
II. ACCUMULATION AND REPRODUCTION ON AN EXTENDED SCALESince accumulation takes place in the form of extended reproduction, it is evident that it does not offer any new problem with regard to money-circulation.
In the first place, as far as the additional money-capital required for the functioning of the increasing productive capital is concerned, that is supplied by the portion of the realised surplus-value thrown into circulation by the capitalists as money-capital, not as the money-form of the revenue. The money is already in the hands of the capitalists. Only its employment is different.
Now however in consequence of the additional productive capital, its product, an additional mass of commodities is thrown into circulation.
