TheEconomicandPhilosophicalManuscripts：Preface
KarlMarx’sECONOMICANDPHILOSOPHICALMANUSCRIPTS
PrefaceIhavealreadygivennoticeintheDeutsch—FranzösischeJahrbücher，thecritiqueofjurisprudenceandpoliticalscienceintheformofacritiqueoftheHegelianPhilosophyofRight.Inthecourseofelaborationforpublication，theinterminglingofcriticismdirectedonlyagainstspeculationwithcriticismofthevarioussubjectsthemselvesprovedutterlyunsuitable，hamperingthedevelopmentoftheargumentandrenderingcomprehensiondifficult.
Moreoverthewealthanddiversityofthesubjectstobetreated，couldhavebeencompressedintooneworkonlyinapurelyaphoristicstyle;
whileanaphoristicpresentationofthiskind，foritspart，wouldhavegiventheimpressionofarbitrarysystemizing.Ishallthereforeissuethecritiqueoflaw，ethics，politics，etc.，inaseriesofdistinct，independentpamphlets，andattheendtryinaspecialworktopresentthemagainasaconnectedwholeshowingtheinterrelationshipoftheseparateparts，andfinally，shallmakeacritiqueofthespeculativeelaborationofthatmaterial.Forthisreasonitwillbefoundthattheinterconnectionbetweenpoliticaleconomyandthestate，law，ethics，civillife，etc.，istouchedoninthepresentworkonlytotheextenttowhichpoliticaleconomyitselfexprofessotouchesonthesesubjects.
Itishardlynecessarytoassurethereaderconversantwithpoliticaleconomythatmyresultshavebeenwonbymeansofawhollyempiricalanalysisbasedonaconscientiouscriticalstudyofpoliticaleconomy.
Whereastheuninformedreviewerwhotriestohidehiscompleteignoranceandintellectualpovertybyhurlingthe\"utopianphrase\"atthepositivecritic’shead，oragainsuchphrasesas\"pure，resolute，utterlycriticalcriticism，\"the\"notmerelylegalbutsocial——utterlysocial——society，\"the\"compact，massymass，\"the\"oratoricaloratorsofthemassymass，\"thisreviewerhasyettofurnishthefirstproofthatbesideshistheologicalfamily—affairshehasanythingtocontributetoadiscussionofworldlymatters.
ItgoeswithoutsayingthatbesidestheFrenchandEnglishSocialistsIhavemadeuseofGermanSocialistworksaswell.TheonlyoriginalGermanworksofsubstanceinthisscience，however——otherthanWeitling’swritings——aretheessaysbyHesspublishedinEinundzwanzigBogen，andEngels’sUmrissezueinerKritikderNationalökonomieintheDeutsch—FranzösischeJahrbücher，where，likewise，Iindicatedinaverygeneralwaythebasicelementsofthiswork.
Besidesbeingindebtedtotheseauthorswhohavegivencriticalattentiontopoliticaleconomy，positivecriticismasawhole——andthereforealsoGermanpositivecriticismofpoliticaleconomy——owesitstruefoundationtothediscoveriesofFeuerbach，againstwhosePhilosophiederZukunftandThesenzurReformderPhilosophieintheAnecdotis，despitethetacitusethatismadeofthem，thepettyenvyofsomeandtheveritablewrathofothersseemtohaveinstigatedaregularconspiracyofsilence.
ItisonlywithFeuerbachthatpositive，humanisticandnaturalisticcriticismbegins.Thelessnoisetheymake，themorecertain，profound，widespreadandenduringistheeffectofFeuerbach’swritings，theonlywritingssinceHegel’sPhänomenologieandLogiktocontainarealtheoreticalrevolution.
Incontrasttothecriticaltheologiansofourday，Ihavedeemedtheconcludingchapterofthepresentwork——thesettlingofaccountswithHegeliandialecticandHegelianphilosophyasawhole——tobeabsolutelynecessary，atasknotyetperformed.Thislackofthoroughnessisnotaccidental，sinceeventhecriticaltheologianremainsatheologian.Hence，eitherhehadtostartfromcertainpresuppositionsofphilosophyacceptedasauthoritative;orifintheprocessofcriticismandasaresultofotherpeople’sdiscoveriesdoubtsaboutthesephilosophicalpresuppositionshaveariseninhim，heabandonsthemwithoutvindicationandinacowardlyfashion，abstractsfromthemshowinghisserviledependencemerelyinanegative，unconsciousandsophisticalmanner.
Inthisconnectionthecriticaltheologianiseitherforeverrepeatingassurancesaboutthepurityofhisowncriticism，ortriestomakeitseemasthoughallthatwasletforcriticismtodealwithnowwassomeotherimmatureformofcriticismoutsideitself——sayeighteenth—centurycriticism——andthebackwardnessofthemasses，inordertodiverttheobserver’sattentionaswellashisownfromthenecessarytaskofsettlingaccountsbetweencriticismanditspointoforigin——
HegeliandialecticandGermanphilosophyasawhole——fromthisnecessaryraisingofmoderncriticismaboveitsownlimitationandcrudity.
Eventually，however，wheneverdiscoveries（suchasFeuerbach’s）
aremadeaboutthenatureofhisownphilosophicpresuppositions，thecriticaltheologianpartlymakesitappearasifheweretheonewhohadaccomplishedthis，producingthatappearancebytakingtheresultsofthesediscoveriesand，withoutbeingabletodevelopthem，hurlingthemintheformofcatch—phrasesatwritersstillcaughtintheconfinesofphilosophy;partlyheevenmanagestoacquireasenseofhisownsuperioritytosuchdiscoveriesbycovertlyassertinginaveiled，maliciousandskepticalfashionelementsoftheHegeliandialecticwhichhestillfindslackinginthecriticismofthatdialectic（whichhavenotyetbeencriticallyserveduptohimforhisuse）againstsuchcriticism——nothavingtriedtobringsuchelementsintotheirproperrelationorhavingbeencapableofdoingso，asserting，say，thecategoryofmediatingproofagainstthecategoryofpositive，self—originatingtruth，etc.，inawaypeculiartoHegeliandialectic.
Fortothetheologicalcriticitseemsquitenaturalthateverythinghastobedonebyphilosophy，sothathecanchatterawayaboutpurity，resoluteness，andutterlycriticalcriticism;andhefancieshimselfthetrueconquerorofphilosophywheneverhehappenstofeelsome\"moment\"inHegeltobelackinginFeuerbach——forhowevermuchhepracticesthespiritualidolatryof\"self—consciousness\"and\"mind\"thetheologicalcriticdoesnotgetbeyondfeelingtoconsciousness.
Oncloseinspectiontheologicalcriticism——genuinelyprogressivethoughiswasattheinceptionofthemovement——isseeninthefinalanalysistobenothingbuttheculminationandconsequenceoftheoldphilosophical，andespeciallytheHegelian，transcendentalism，twistedintoatheologicalcaricature.Thisinterestingexampleofthejusticeinhistory，whichnowassignstotheology，everphilosophy’sspotofinfection，thefurtherroleofportrayinginitselfthenegativedissolutionofphilosophy——i.e.，theprocessofitsdecay——thishistoricalnemesisIshalldemonstrateonanotheroccasion.
Howfar，ontheotherhand，Feuerbach’sdiscoveriesaboutthenatureofphilosophyrequiredstill，fortheirproofatleast，acriticalsettlingofaccountswithphilosophicaldialecticwillbeseenfrommyexpositionitself.
TheEconomicandPhilosophicalManuscripts：1stKarlMarx’sECONOMICANDPHILOSOPHICALMANUSCRIPTSFirstManuscriptWAGESOFLABORWagesaredeterminedbythefiercestrugglebetweencapitalistandworker.Thecapitalistinevitablywins.Thecapitalistcanlivelongerwithouttheworkerthantheworkercanlivewithouthim.Combinationamongcapitalistsishabitualandeffective，whilecombinationamongtheworkersisforbiddenandhaspainfulconsequencesforthem.Inadditiontothat，thelandownerandthecapitalistcanincreasetheirrevenueswiththeprofitsofindustry，whiletheworkercansupplementhisincomefromindustrywithneithergroundrentnorinterestoncapital.Thisisthereasonfortheintensityofcompetitionamongtheworkers.Itis，therefore，onlyfortheworkerthattheseparationofcapital，landedproperty，andlabor，isanecessary，essential，andperniciousseparation.Capitalandlandedpropertyneednotremainconstantinthisabstraction，asmustthelaboroftheworkers.
So，fortheworker，theseparationofcapital，groundrent，andlabor，isfatal.
Forwages，thelowestandtheonlynecessaryrateisthatrequiredforthesubsistenceoftheworkerduringworkandenoughextratosupportafamilyandpreventtheraceofworkersfromdyingout.Accordingto[economistAdam]Smith，thenormalwageisthelowestwhichiscompatiblewithcommonhumanity——i.e.，withabestialexistence.[SeeSmith，TheWealthofNations，2vols.，Everymanedition，Vol.I，p.61.]
Thedemandformennecessarilyregulatestheproductionofmen，asofeveryothercommodity.Ifthesupplygreatlyexceedsthedemand，thenonesectionoftheworkerssinksintobeggaryorstarvation.Theexistenceoftheworkeris，therefore，reducedtothesameconditionastheexistenceofeveryothercommodity.Theworkerhasbecomeacommodity，andheisluckyifhecanfindabuyer.Andthedemandonwhichtheworker’slifedependsisregulatedbythewhimsofthewealthyandthecapitalists.Ifsupplyexceedsdemand，oneoftheelementswhichgotomakeuptheprice——profit，groundrent，wages——willbepaidbelowitsprice.A
partoftheseelementsis，therefore，withdrawnfromthisapplication，withtheresultthatthemarketpricegravitatestowardsthenaturalpriceasthecentralpoint.But1.itisverydifficultfortheworkertodirecthislaborelsewherewherethereisamarkeddivisionoflabor;and2.becauseofhissubordinaterelationshiptothecapitalist，heisthefirsttosuffer.
Sotheworkerissuretoloseandtolosemostfromthegravitationofthemarketpricetowardsthenaturalprice.Anditispreciselytheabilityofthecapitalisttodirecthiscapitalelsewherewhicheitherdrivestheworker，whoisrestrictedtooneparticularbranchofemployment，intostarvationorforceshimtosubmittoallthecapitalist’sdemands.
Thesuddenchancefluctuationsinmarketpricehitgroundrentlessthanthatpartofthepricewhichconstitutesprofitandwages，buttheyhitprofitlessthanwages.Foreverywagewhichrises，thereisgenerallyonewhichremainsstationaryandanotherwhichfalls.
Theworkerdoesnotnecessarilygainwhenthecapitalistgains，buthenecessarilyloseswithhim.Forexample，theworkerdoesnotgainifthecapitalistkeepsthemarketpriceabovethenaturalpricebymeansofamanufacturingortradesecret，amonopolyorafavorablyplacedproperty.
Moreover，thepricesoflaboraremuchmoreconstantthanthepricesofprovisions.Theyareoftenininverseproportion.Inadearyear，wagesdropbecauseofadropindemandandrisebecauseofanincreaseinthepriceofprovisions.They，therefore，balance.Inanycase，someworkersareleftwithoutbread.Incheapyears，wagesriseonaccountoftheriseindemand，andfallonaccountofthefallinthepriceofprovisions.
Sotheybalance.[Smith，I，pp.76—7.]
Anotherdisadvantagefortheworker：
Thepriceofthelaborofdifferentkindsofworkersvariesmuchmorethantheprofitsofthevariousbranchesinwhichcapitalisputtouse.Inthecaseoflabor，allthenatural，spiritual，andsocialvariationsinindividualactivityaremanifestedandvariouslyrewarded，wereasdeadcapitalbehavesinauniformwayandisindifferenttorealindividualactivity.
Ingeneral，weshouldnotethatwhereworkerandcapitalistbothsuffer，theworkersuffersinhisveryexistencewhilethecapitalistsuffersintheprofitonhisdeadmammon.
Theworkerhasnotonlytostruggleforhisphysicalmeansofsubsistence;hemustalsostruggleforwork——i.e.，forthepossibilityandthemeansofrealizinghisactivity.Letusconsiderthethreemainconditionswhichcanoccurinsocietyandtheireffectontheworker.
（1）Ifthewealthofsocietyisdecreasing，theworkersuffersmost，althoughtheworkingclasscannotgainasmuchasthepropertyownerswhensocietyisprospering，nonesuffersmorecruellyfromitsdeclinethantheworkingclass.[Smith，I，p.230.]
（2）Letusnowconsiderasocietyinwhichwealthisincreasing.
Thisconditionistheonlyonefavorabletotheworker.Here，competitiontakesplaceamongthecapitalists.Thedemandforworkersoutstripssupply.
But：
Inthefirstplace，theriseofwagesleadstooverworkamongtheworkers.Themoretheywanttoearnthemoretheymustsacrificetheirtimeandfreedomandworklikeslavesintheserviceofavarice.Indoingso，theyshortentheirlives.Butthisisalltothegoodoftheworkingclassasawhole，sinceitcreatesareneweddemand.Thisclassmustalwayssacrificeapartofitselfifitistoavoidtotaldestruction.
Furthermore，whenisasocietyinaconditionofincreasingprosperity？
Whenthecapitalsandrevenuesofacountryaregrowing.Butthisisonlypossible（a）asaresultoftheaccumulationofalargequantityoflabor，forcapitalisaccumulatedlabor;thatistosay，whenmoreandmoreoftheworkers’productsarebeingtakenfromhim，whenhisownlaborincreasinglyconfrontshimasalienpropertyandthemeansofhisexistenceandofhisactivityareincreasinglyconcentratedinthehandsofthecapitalist.
（b）Theaccumulationofcapitalincreasesthedivisionoflabor，andthedivisionoflaborincreasesthenumberofworkers;conversely，thegrowthinthenumberofworkersincreasesthedivisionoflabor，justasthegrowthinthedivisionoflaborincreasestheaccumulationofcapital.
Asaconsequenceofthisdivisionoflabor，ontheonehand，andtheaccumulationofcapitals，ontheother，theworkerbecomesmoreandmoreuniformlydependentonlabor，andonaparticular，veryone—sidedandmachine—liketypeoflabor.Justasheisdepressed，therefore，bothintellectuallyandphysicallytothelevelofamachine，andfrombeingamanbecomesanabstractactivityandastomach，sohealsobecomesmoreandmoredependentoneveryfluctuationinthemarketprice，intheinvestmentofcapitalandinthewhimsofthewealthy.Equally，theincreaseinthatclassofmenwhodonothingbutworkincreasesthecompetitionamongtheworkersandthereforelowerstheirprice.Inthefactorysystem，conditionssuchasthesereachtheirclimax.
（c）Inasocietywhichisbecomingincreasinglyprosperous，onlytheveryrichestcancontinuetolivefromtheinterestonmoney.
Alltherestmustrunabusinesswiththeircapital，orputitonthemarket.
Asaresult，thecompetitionamongthecapitalistsincreases，thereisagrowingconcentrationofcapital，thebigcapitalistsruinthesmallones，andasectionoftheformercapitalistssinksintotheclassoftheworkers——which，becauseofthisincreaseinnumbers，suffersafurtherdepressionofwagesandbecomesevenmoredependentonthehandfulofbigcapitalists.Becausethenumberofcapitalistshasfallen，competitionforworkershasincreased，thecompetitionamongthemhasbecomeallthemoreconsiderable，unnaturalandviolent.Hence，asectionoftheworkingclassisreducedtobeggaryorstarvationwiththesamenecessityasasectionofthemiddlecapitalistsendsupintheworkingclass.
So，eveninthestateofsocietymostfavorabletohim，theinevitableconsequencefortheworkerandearlydeath，reductiontoamachine，enslavementtocapitalwhichpilesupinthreateningoppositiontohim，freshcompetitionandstarvationorbeggaryforasectionoftheworkers.
Anincreaseinwagesarousesintheworkerthesamedesiretogetrichasinthecapitalist，buthecanonlysatisfythisdesirebysacrificinghismindandbody.Anincreaseinwagespresupposes，andbringsabout，theaccumulationofcapital，andthusopposestheproductoflabortotheworkerassomethingincreasinglyalientohim.Similarly，thedivisionoflabormakeshimmoreandmoreone—sidedanddependent，introducingcompetitionfrommachinesaswellasfrommen.Sincetheworkerhasbeenreducedtoamachine，themachinecanconfronthimasacompetitor.Finally，justastheaccumulationofcapitalincreasesthequantityofindustryand，therefore，thenumberofworkers，soitenablesthesamequantityofindustrytoproduceagreaterquantityofproducts.Thisleadstooverproductionandendsupeitherbyputtingalargenumberofworkersoutofworkorbyreducingtheirwagestoapittance.
Sucharetheconsequencesofaconditionofsocietywhichismostfavorabletotheworker——i.e.，aconditionofgrowingwealth.
But，inthelongrun，thetimewillcomewhenthisstateofgrowthreachesapeak.Whatisthesituationoftheworkerthen？
（3）\"Inacountrywhichhadacquiredthatfullcomplementofrichesboththewagesoflaborandtheprofitsofstockwouldprobablybeverylowthecompetitionforemploymentwouldnecessarilybesogreatastoreducethewagesoflabortowhatwasbarelysufficienttokeepupthenumberoflaborers，and，thecountrybeingalreadyfullypeopled，thatnumbercouldneverbeaugmented.\"[SmithI，p.84]Thesurpluspopulationwouldhavetodie.
So，inadecliningstateofsociety，wehavetheincreasingmiseryoftheworker;inanadvancingstate，complicatedmisery;andintheterminalstate，staticmisery.
Smithtellsusthatasocietyofwhichthegreaterpartsuffersisnothappy.[SmithI，p.70]But，sinceeventhemostprosperousstateofsocietyleadstosufferingforthemajority，andsincetheeconomicsystem[Nationalokonomie]，whichisasocietybasedonprivateinterests，bringsaboutsuchastateofprosperity，itfollowsthatsociety’sdistressisthegoaloftheeconomicsystem.
Weshouldfurthernoteinconnectionwiththerelationshipbetweenworkerandcapitalistthatthelatterismorethancompensatedforwagerisesbyareductionintheamountoflabortime，andthatwagerisesandincreasesintheinterestoncapitalactoncommoditypriceslikesimpleandcompoundinterestrespectively.
Letusnowlookatthingsfromthepointofviewofthepoliticaleconomistandcomparewhathehastosayaboutthetheoreticalandpracticalclaimsoftheworker.
Hetellsusthat，originally，andintheory，thewholeproduceoflaborbelongstotheworker.[SmithI，p.57]But，atthesametime，hetellsusthatwhattheworkeractuallyreceivesisthesmallestpartoftheproduct，theabsoluteminimumnecessary;justenoughforhimtoexistnotasahumanbeingbutasaworkerandforhimtopropagatenothumanitybuttheslaveclassoftheworkers.
Thepoliticaleconomisttellsusthateverythingisboughtwithlaborandthatcapitalisnothingbutaccumulatedlabor，butthengoesontosaythattheworker，farfrombeinginapositiontobuyeverything，mustsellhimselfandhishumanity.
Whilethegroundrentoftheindolentlandownergenerallyamountstoathirdoftheproductofthesoil，andtheprofitofthebusycapitalisttoasmuchastwicetherateofinterest，thesurpluswhichtheworkerearnsamountsatbesttotheequivalentofdeaththroughstarvationfortwoofhisfourchildren.[SmithI，p.60]]
Accordingtothepoliticaleconomist，laboristheonlymeanswherebymancanenhancethevalueofnaturalproducts，andlaboristheactivepropertyofman.But，accordingtothissamepoliticaleconomy，thelandownerandthecapitalist，whoassucharemerelyprivilegedandidlegods，areeverywheresuperiortotheworkeranddictatethelawtohim.
Accordingtothepoliticaleconomist，laboristheonlyconstantpriceofthings.Butnothingismoresubjecttochancethanthepriceoflabor，nothingexposedtogreaterfluctuations.
Whilethedivisionoflaborincreasestotheproductivepoweroflaborandthewealthandrefinementofsociety，itimpoverishestheworkerandreduceshimtoamachine.Whilelaborgivesrisetotheaccumulationofcapital，andsobringsaboutthegrowingprosperityofsociety，itmakestheworkerincreasinglydependentonthecapitalist，exposeshimtogreatercompetitionanddriveshimintothefrenziedworldofoverproduction，withitssubsequentslump.
Accordingtothepoliticaleconomist，theinterestoftheworkerisneveropposedtotheinterestofsociety.But，societyisinvariablyandinevitablyopposedtotheinterestoftheworker.
Accordingtothepoliticaleconomist，theinterestoftheworkerisneveropposedtothatofsociety：（1）becausetheriseinwagesismorethanmadeupforbythereductionintheamountoflabortime，withtheotherconsequencesexplainedabove，and（2）becauseinrelationtosocietytheentiregrossproductisnetproduct，andonlyinrelationtotheindividualdoesthenetproducthaveanysignificance.
Butitfollowsfromtheanalysesmadebythepoliticaleconomists，eventhoughtheythemselvesareunawareofthefact，thatlaboritself——notonlyunderpresentconditions，butingeneral，insofarasitsgoalisrestrictedtotheincreaseofwealth——isharmfulanddestructive.
*Intheory，groundrentandprofitoncapitalaredeductionsmadefromwages.But，inreality，wagesareadeductionwhichlandandcapitalgranttheworker，anallowancemadefromtheproductoflabortotheworker，tolabor.
Theworkersuffersmostwhensocietyisinastateofdecline.
Heowestheparticularseverityofhisdistresstohispositionasaworker，butthedistressassuchisaresultofthesituationofsociety.
But，whensocietyisinastateofprogress，thedeclineandimpoverishmentoftheworkeristheproductofhislaborandthewealthproducedbyhim.
Thismisery，therefore，proceedsfromtheveryessenceofpresent—daylabor.
Asocietyatthepeakofprosperity——anideal，butonewhichissubstantiallyachieved，andwhichisatleastthegoaloftheeconomicsystemandofcivilsociety——isstaticmiseryfortheworker.
Itgoeswithoutsayingthatpoliticaleconomyregardstheproletarian——i.e.，hewholiveswithoutcapitalandgroundrent，fromlaboralone，andfromone—sided，abstractlaboratthat——asnothingmorethanaworker.Itcan，therefore，advancethethesisthat，likeahorse，hemustreceiveenoughtoenablehimtowork.Itdoesnotconsiderhim，duringthetimewhenheisnotworking，asahumanbeing.Itleavesthistocriminallaw，doctors，religion，statisticaltables，politics，andthebeadle.
Letusnowriseabovethelevelofpoliticaleconomyandexaminetheideasdevelopedabove，takenalmostwordforwordfromthepoliticaleconomists，fortheanswerstothesetwoquestions：
（1）Whatisthemeaning，inthedevelopmentofmankind，ofthisreductionofthegreaterpartofmankindtoabstractlabor？
（2）Whatmistakesaremadebythepiecemealreformers，whoeitherwanttoraisewagesandtherebyimprovethesituationoftheworkingclass，or——likeProudhon——seeequalityofwagesasthegoalofsocialrevolution？
Inpoliticaleconomy，laborappearsonlyintheformofwage—earningactivity.
*\"Itcanbearguedthatthoseoccupationwhichdemandspecificabilitiesorlongertraininghaveonthewholebecomemorelucrative;whilethecommensuratewageformechanicallyuniformactivity，inwhicheveryonecanbequicklyandeasilytrained，hasfallen，andinevitablyso，asaresultofgrowingcompetition.Anditispreciselythiskindoflaborwhich，underthepresentsystemoflabororganization，isbyfarthemostcommon.
\"So，ifaworkerinthefirstcategorynowearnsseventimesasmuchashedid50yearsago，whileanotherinthesecondcategorycontinuestoearnthesameashedidthen，thenonaveragetheyearnfourtimesasmuch.
\"Butifinagivencountrythereareonlyathousandworkersinthefirstcategoryandamillioninthesecond，then999，000arenobetteroffthan50yearsago，andtheyareworseoffifthepricesofstaplegoodshaverisen.
\"Andyetpeoplearetryingtodeceivethemselvesaboutthemostnumerousclassofthepopulationwithsuperficialaveragecalculationsofthissort.
\"Moreover，thesizeofwagesisonlyonefactorinevaluatingaworker’sincome：itisalsoessentialtotakeintoaccountthelengthoftimeforwhichsuchwagesareguaranteed，andthereisnoquestionofguaranteesintheanarchyofso—calledfreecompetitionwithitscontinualfluctuationsandstagnation.Finally，wemustbearinmindthehoursofworkwhichwereusualearlierandthosewhichareusualnow.AndfortheEnglishcottonworkers，theworkingdayhasbeenincreased，asaresultoftheemployers’
greed，from12to16hoursduringthepast25yearsorso——i.e.，sincelabor—savingmachineswereintroduced.Thisincreaseinonecountryandinonebranchofindustryinevitablycarriedovertoagreaterorlesserdegreeintootherareas，fortherightsofthewealthytosubjectthepoortoboundlessexploitationarestilluniversallyacknowledged.\"
[WilhelmSchulz，DieBewegungderProduktion，einegeschichtlichstatistisckeAbhandlung.
ZurichandWinterthur，1843，p.65]
\"Buteveneventhiswereastrueasitisfalse，thattheaverageincomeofallclassesofsocietyhasgrown，thedifferencesandrelativeintervalsbetweenincomescanstillhavegrownbigger，sothatthecontrastbetweenwealthandpovertybecomessharper.Foritispreciselybecausetotalproductionrisesthatneeds，desires，andclaimsalsoincrease，andtheyincreaseinthesamemeasureasproductionrises;relativepovertycanthereforegrowwhileabsolutepovertydiminishes.TheSamoyedisnotpoorwithhisblubberandrancidfish，forinhisself—containedsociety，everyonehasthesameneeds.But，inastatewhichismakingrapidheadway，which，inthecourseofadecade，increasesitstotalproductioninrelationtothepopulationbyathird，theworkerwhoearnsthesameattheendofthe10yearsashedidatthebeginninghasnotmaintainedhisstandardofliving，hehasgrownpoorerbyathird.\"
[WilhelmSchulz，pp.65—6]Butpoliticaleconomyknowstheworkeronlyasabeastofburden，asananimalreducedtotheminimumbodilyneeds.
\"Ifapeopleistoincreaseitsspiritualfreedom，itcannolongerremaininthralltoitsbodilyneeds，itcannolongerbetheservantoftheflesh.Aboveall，itneedstimeforintellectualexerciseandrecreation.Thistimeiswonthroughnewdevelopmentsintheorganizationoflabor.
\"Nowadays，asingleworkerinthecottonmills，asaresultofnewwaysofproducingpowerandnewmachinery，canoftendoworkthatpreviouslyneeded100oreven250—300workers.Allbranchesofindustryhavewitnessedsimilarconsequences，sinceexternalnaturalforcesareincreasinglybeingbroughttobearonhumanlabor.Iftheamountoftimeandhumanenergyneededearliertosatisfyagivenquantityofmaterialneedswaslaterreducedbyhalf，then，withoutanyforfeitureofmaterialcomfort，themarginforintellectualcreationandrecreationwillhaveincreasedbyhalf.
\"But，eventhesharingofthespoilswhichwewinfromoldChronosonhisveryownterritorystilldependsonblindandunjustchance.
\"InFrance，ithasbeenestimatedthat，atthepresentstageofproduction，anaverageworkingdayoffivehoursfromeachpersoncapableofworkwouldbesufficienttosatisfyallsociety’smaterialneedsInspiteofthetimesavedthroughimprovementsinmachinery，thetimespentinslavelaborinthefactorieshasincreasedformanypeople.\"
[WilhelmSchulz，pp.67—8]
\"Thetransitionfromcomplicatedhandicraftspresupposesabreakingdownofsuchworkintothesimpleoperationsofwhichitconsists.
Tobeginwith，however，onlyapartoftheuniformlyrecurringoperationsfallstothemachines，whileanotherpartfallstomen.
Permanentlyuniformactivityofthiskindisbyitsverynatureharmfultobothsoulandbody——afactwhichisalsoconfirmedbyexperience;andso，whenmachineryiscombinedinthisway，withthemeredivisionoflaboramongalargernumberofmen，alltheshortcomingsofthelatterinevitablymaketheirappearance.Theseshortcomingsincludethegreatermortalityoffactoryworkers
\"Noattentionhasbeenpaidtotheessentialdistinctionbetweenhowfarmenworkthroughmachinesandhowfartheyworkasmachines.\"
[WilhelmSchulz，pp.69]
\"Inthefuturelifeofthenations，however，themindlessforcesofnatureoperatinginmachineswillbeourslavesandservants.\"
[WilhelmSchulz，pp.74]
\"IntheEnglishspinningmills，only158，818menareemployed，comparedwith196，818women.Forevery100menworkersintheLancashirecottonmills，thereare103womenworkers’inScotland，thefigureisashighas209.IntheEnglishflaxmillsinLeeds，thereare147womenforevery100menworkers;inDundee，andontheeastcoastofScotland，thisfigureisashighas280.IntheEnglishsilk—factories，therearemanywomenworkers;inthewoolfactories，wheregreaterstrengthisneeded，therearemoremen.
AsfortheNorthAmericancottonmills，in1833therewerenofewerthan38，927womenalongside18，593men.
\"So，asaresultofchangesintheorganizationoflabor，awiderareaofemploymentopportunitieshasbeenopeneduptomembersofthefemalesexmoreeconomicindependenceforwomenbothsexesbroughtclosertogetherintheirsocialrelations.\"
[WilhelmSchulz，pp.71—2]
\"EmployedintheEnglishspinningmillsoperatedbysteamandwaterintheyear1835were：20，558childrenbetween8and12yearsofage;35，867between12and13;and，finally，108，208between13and18
\"True，theadvancesinmechanization，whichremovemoreandmoreofthemonotonoustasksfromhumanhands，aregraduallyeliminatingtheseills.But，standinginthewayofthesemorerapidadvancesisthefactthatthecapitalistsareinapositiontomakeuseoftheenergiesofthelowerclasses，rightdowntochildren，veryeasilyandverycheaply，andtousetheminsteadofmachinery.\"
[WilhelmSchulz，pp.70—1]
\"LordBrougham’sappealtotheworkers：’Becomecapitalists！’
\"Theevilthatmillionareonlyabletoekeoutalivingthroughexhausting，physicallydestructive，andmorallyandintellectuallycrippling，labor;thattheyareevenforcedtoregardthemisfortuneoffindingsuchworkasfortunate.\"
[WilhelmSchulz，pp.60]
\"So，inordertolive，thenon—ownersareforcedtoplacethemselvesdirectlyorindirectlyattheserviceofowners——
i.e.，becomedependentuponthem.\"[C.Pecqueur，Theorienouvelled’economiesocialeetpolitique，ouetudessurl’organisationdessocietes，Paris，1842，p.409]\"Servants——pay;workers——wages;clerks——salariesoremoluments\"hireoutone’slabor\"，\"lendoutone’slaboratinterest\"，\"workinanother’splace\".
\"hireoutthematerialsoflabor\"，\"lendthematerialsoflaboratinterest\"，\"makeanotherworkinone’splace\".[C.Pecqueur，p.409—10，411]\"Thiseconomicconstitutioncondemnsmentosuchabjectemployments，suchdesolateandbitterdegradation，thatbycomparisonsavageryappearslikearoyalcondition.\"\"Prostitutionofthenon—owningclassinallitsforms.\"Rag—and—bonemen.[C.Pecqueur，p.417—18，421]CharlesLoudon，inhisworkSolutionduproblemedelapopulation，givesthenumberofprostitutesinEnglandas60—70，000.Thenumberofwomenof\"doubtfulvirtue\"isroughlythesame.
\"Theaveragelifespanoftheseunfortunatecreaturesonthestreets，aftertheyhaveembarkedontheircareerofvice，isaboutsixorsevenyears.Thismeansthat，ifthenumberof60—70，000
prostitutesistobemaintained，theremustbeinthethreekingdomsatleast8—9，000womenayearwhotakeupthisinfamoustrade——
i.e.，roughly24victimsaday，whichisanaverageofoneanhour.
So，ifthesameproportionistrueforthewholesurfaceoftheplanet，thenatalltimestheremustbeone—and—a—halfmillionoftheseunhappycreatures.\"
[CharlesLoudon，Solutionduproblemedelapopulationetdelasubsistence，soumiseaunmedecindansuneseriedulettres，Paris，1842，p.229]
\"Thepopulationofthepoorgrowswiththeirpoverty，anditisatthemostextremelimitofneedthathumanbeingscrowdtogetherinthegreatestnumbersinordertofightamongthemselvesfortherighttosuffer\"In1821，thepopulationofIrelandwas6，801，827.By1831，ithadrisento7，764，010;thatis，a14percentincreasein10years.InLeinster，themostprosperousoftheprovinces，thepopulationonlygrewby8percent，whileinConnaught，thepoorestoftheprovinces，theincreasewasashighas21percent.（ExtractfromInquiriesPublishedinEnglandonIreland，Vienna，1840.）
[EugeneBuret，DelamiseredesclasseslaborieusesenAngleterreetenFrance，2vols.，Paris，1840，Vol.I，pp.36—7]Politicaleconomyregardslaborabstractly，asathing;laborisacommodity;ifthepriceishigh，thecommodityismuchindemand;ifitislow，thenitismuchinsupply;\"thepriceoflaborasacommoditymustfalllowerandlower\".
[ibid.，p.43]Thisisbroughtaboutpartlybythecompetitionamongtheworkersthemselves.
\"theworkingpopulation，selleroflabor，isforcedtoacceptthesmallestpartoftheproductIsthetheoryoflaborasacommodityanythingotherthanadisguisedtheoryofslavery？\"
\"Whythenwaslaborregardedasnothingmorethananexchangevalue？\"
[EugeneBuret，p.43]Thebigworkshopsprefertobuythelaborofwomenandchildren，becauseitcostslessthanthatofmen.
\"Vis—a—vishisemployer，theworkerisnotatallinthepositionofafreesellerThecapitalistisalwaysfreetoemploylabor，andtheworkerisalwaysforcedtosellit.Thevalueoflaboriscompletelydestroyedifitisnotsoldateveryinstant.
Unlikegenuinecommodities，laborcanbeneitheraccumulatednorsaved.
\"Laborislife，andiflifeisnotexchangedeverydayforfood，itsuffersandsoonperishes.Ifhumanlifeistoberegardedasacommodity，weareforcedtoadmitslavery.\"
[EugeneBuret，p.49—50]So，iflaborisacommodity，itisacommoditywiththemostunfortunatecharacteristics.But，evenaccordingtoeconomicprinciples，itisnotone，foritisnotthe\"freeproductofafreemarket\".[ibid.，p.50
]Thepresenteconomicregime\"reducesatthesametimeboththepriceandtheremunerationoflabor;itperfectstheworkeranddegradestheman.\"[ibid.，p.52—3]\"Industryhasbecomeawar，commerceagame.\"
[ibid.，p.62]
\"Themachinesforspinningcotton（inEngland）alonerepresent84，000，000handworkers.\"
[EugeneBuret，p.193]Uptonow，industryhasbeeninthesituationofawarofconquest：
\"ithassquanderedthelivesofthemenwhocomposeditsarmywithasmuchindifferenceasthegreatconquerors.Itsgoalwasthepossessionofriches，andnothumanhappiness.\"\"Theseinterests（i.e.，economicinterests），lefttotheirownfreedevelopment，cannothelpcomingintoconflict;waristheironlyarbiter，andthedecisionsofwarassigndefeatanddeathtosomeandvictorytoothersItisintheconflictofopposingforcesthatsciencelooksfororderandequilibrium;perpetualwas，intheviewofscience，istheonlymeansofachievingpeace;thiswariscalledcompetition.\"
[EugeneBuret，pp.20，23]
\"Theindustrialwar，ifitistobewagedsuccessfully，needslargearmieswhichitcanconcentrateatonepointanddecimateatwill.
Andneitherdevotionnordutymovesthesoldiersofthisarmytobeartheburdenplaceduponthem;whatmovesthemistheneedtoescapetheharshnessofstarvation.Theyfeelneitheraffectionnorgratitudefortheirbosses，whoarenotboundintheirsubordinatesbyanyfeelingofgoodwillandwhoregardthemnotashumanbeingsbutasinstrumentsofproductionwhichbringinasmuchandcostaslittleaspossible.Thesegroupsofworkers，whoaremoreandmorecrowdedtogether，cannotevenbesuretheytheywillalwaysbeemployed;theindustrywhichhassummonedthemtogetherallowsthemtoliveonlybecauseitneedsthem;assoonasitcangetridofthem，itabandonsthemwithouttheslightesthesitation;andtheworkersareforcedtooffertheirpersonsandtheirlaborforwhateveristhegoingprice.Thelonger，moredistressingandloathsometheworkwhichisgiventhem，thelesstheyarepaid;onecanseeworkerswhotoiltheirwaynon—stopthrougha16—hourdayandwhoscarcelymanagetobuytherightnottodie.\"
[EugeneBuret，pp.68—9]
\"Weareconvincedasarethecommissionersappointedtolookintotheconditionsofthehandloomweavers，thatthelargeindustrialtownswouldquicklylosetheirpopulationofworkersiftheydidnotallthetimereceiveacontinualstreamofhealthypeopleandfreshbloodfromthesurroundingcountryareas.\"
[EugeneBuret，pp.362]
PROFITOFCAPITAL
1.Capital（1）Whatisthebasisofcapital——i.e.，ofprivatepropertyintheproductsofanother’slabor？
\"Evenifcapitalcannotbereducedtosimpletheftorfraud，itstillneedstheassistanceoflegislationtosanctifyinheritance.\"
[Jean—BaptisteSay，Traied’economiepolitique，thirdedition，2volumes，Paris，1817，I，p.136，footnote]Howdoesonebecomeanownerofproductivestock？Howdoesonbecomeowneroftheproductscreatedbymeansofthisstock？
Throughpositivelaw.[Say，II，p.4]
Whatdoesoneacquirewithcapital，withtheinheritanceofalargefortune，forexample？
\"Thepersonwhoacquires，orsucceedstoagreatfortune，doesnotnecessarilyacquireorsucceedtoanypoliticalpowerThepowerwhichthatpossessionimmediatelyanddirectlyconveystohim，isthepowerofpurchasing;acertaincommandoverallthelabor，oroveralltheproduceoflabor，whichistheninthemarket.\"
[Smith，WealthofNations，I，pp.26—7]Capitalis，therefore，thepowertocommandlabor，anditsproducts.Thecapitalistpossessesthispowernotonaccountofhispersonalorhumanpropertiesbutinsofarasheisanownerofcapital.Hispoweristhepurchasingpowerofhiscapital，whichnothingcanwithstand.
Later，weshallseehowthecapitalist，bymeansofcapital，exerciseshispowertocommandlabor;butweshallthengoontoseehowcapital，initsturn，isabletorulethecapitalisthimself.
Whatiscapital？
\"Acertainquantityoflaborstockedandstoredup\"
[Smith，p.295]Capitalisstoredup—labor.
（2）Bonds，orstock，isanyaccumulationoftheproductsofthesoilorofmanufacture.Stockisonlycalledcapitalwhenityieldsitsownerarevenueorprofit.
2.TheProfitofCapitalTheprofitorgainofcapitalisaltogetherdifferentfromthewagesoflabor.Thisdifferencemanifestsitselfintwoways：firstly，theprofitsofcapitalareregulatedaltogetherbythevalueofthestockemployed，althoughthelaborofinspectionanddirectionfordifferentcapitalsmaybethesame.Furthermore，inmanylargefactories，thewholelaborofthiskindiscommittedtosomeprincipalclerk，whosewagesneverbearanyregularproportiontothecapitalofwhichheoverseesthemanagement.Andtheownerofthiscapital，thoughheisthusdischargedofalmostalllabor，stillexpectsthathisprofitsshouldbeararegularproportiontohiscapital.[Smith，p.43]
Whydoesthecapitalistdemandthisproportionbetweenprofitandcapital？
Hecouldhavenointerestinemployingtheseworkers，unlessheexpectedfromthesaleoftheirworksomethingmorethanwassufficienttoreplacethestockadvancedbyhimaswages;andhecouldhavenointeresttoemployagreatstockratherthanasmallone，unlesshisprofitsweretobearsomeproportiontotheextentofhisstock.[Smith，p.42]
Sothecapitalistmakesaprofitfirstontheagesandsecondlyontherawmaterialsadvancedbyhim.
Whatrelation，then，doesprofithavetocapital？
Itisnoteasytoascertainwhataretheaveragewagesoflaboreveninaparticularplaceandataparticulartime，anditisevenmoredifficulttodeterminetheprofitoncapital.Variationsofpriceincommoditieswhichthecapitalistdealsin，thegoodorbadfortunebothofhisrivalsandofhiscustomers，athousandotheraccidentstowhichhisgoodsareliableintransitandinwarehouses，allproduceadaily，almosthourly，variationinprofits.[Smith，pp.78—9]Butalthoughitmaybeimpossibletodetermine，withanydegreeofprecision，theaverageprofitsofcapital，somenotionmaybeformedofthemfromtheinterestofmoney.Whereveragreatdealcanbemadebytheuseofmoney，agreatdealwillbegivenfortheuseofit;whereverlittlecanbemade，littlewillbegiven.[Smith，p.79]
\"Theproportionwhichtheusualmarketrateofinterestoughttobeartotheordinaryrateofclearprofit，necessarilyvariesasprofitrisesorfalls.DoubleinterestisinGreatBritainreckonedwhatthemerchantscallagood，moderate，reasonableprofit，termswhichmeannomorethanacommonandusualprofit.\"
[Smith，p.87]Whatisthelowestrateofprofit？Andwhatisthehighest？
Thelowestrateofordinaryprofitoncapitalsmustalwaysbesomethingmorethanwhatissufficienttocompensatetheoccassionallossestowhicheveryemploymentofcapitalisexposed.Itisthissurplusvalueonlywhichistheneatorclearprofit.Thesameholdsforthelowestrateofinterest.[Smith，p.86]
Thehighestratetowhichordinaryprofitscanrisemaybesuchas，inthepriceofthegreaterpartofcommodities，eastsupthewholeoftherentofthelandandreducesthewagesoflaborexpendedinpreparingthecommodityandbringingittomarkettothelowestrate，thebaresubsistenceofthelaborer.Theworkmanmustalwayshavebeenfedinsomewayorotherwhilehewasaboutthework;buttherentoflandcandisappearentirely.
Examples：theservantsoftheEastIndiaCompanyinBengal.[Smith，pp.
86—7]
Besidesalltheadvantagesoflimitedcompetitionwhichthecapitalistcanexploitinsuchacase，hecankeepthemarketpriceabovethenaturalprice，byquitehonorablemeans.
Firstly，bysecretsintrade，wherethemarketisatagreatdistancefromtheresidenceofthosewhosupplyit;thatis，byconcealingachangeinprice，anincreaseabovethenaturallevel.Theeffectofthisconcealmentisthatothercapitalistsdonotinvesttheircapitalinthisbranchofindustry.
Secondly，bysecretsinmanufacture，whichenablethecapitalisttocutproductioncostsandsellhisgoodsatthesameprice，orevenatalowerpricethanhiscompetitors，whilemakingabiggerprofit.（Deceitbyconcealmentisnotimmoral？DealingsontheStockExchange.）Furthermore，whereproductionisconfinedtoaparticularlocality（asinthecaseofselectwines）andtheeffectivedemandcanneverbesatisfied.Finally，throughmonopoliesgrantedtoindividualsorcompanies.Thepriceofmonopolyisthehighestwhichcanbegot.[Smith，pp.53—4]
Otherchancecauseswhichcanraisetheprofitoncapital：
Theacquisitionofnewterritory，orofnewbranchesoftrade，maysometimesrisetheprofitsofstockeveninawealthycountry，becausepartofthecapitaliswithdrawnfromtheoldbranchesoftrade，competitioncomestobelessthanbefore，andthemarketislessfullysupplieswithcommodities，thepricesofwhichthenrise：thosewhodealinthesecommoditiescanthenaffordtoborrowatahigherinterest.[Smith，p.83]Asanyparticularcommoditycomestobemoremanufactured，thatpartofthepricewhichresolvesitselfintowagesandprofitcomestobegreaterinproportiontothatwhichresolvesitselfintorent.Intheprogressofthemanufactureofcommodity，notonlythenumberoftheprofitsincrease，buteverysubsequentprofitisgreaterthantheprecedingone;becausethecapitalfromwhichitisderivedmustalwaysbegreater.Thecapitalwhichemploystheweavers，forexample，mustbegreaterthanthatwhichemploysthespinners;becauseitnotonlyreplacesthatcapitalwithitsprofits，butpaysbesides，thewagesoftheweavers;andtheprofitsmustalwaysbearsomeproportiontothecapital.[Smith，p.45]
So，thegrowingroleplayedbyhumanlaborinfashioningthenaturalproductincreasesnotthewagesoflaborbutpartlythenumberofprofitablecapitalsandpartlythesizeofeachcapitalinproportiontothosethatprecedeit.
Morelaterabouttheprofitwhichthecapitalistderivesfromthedivisionoflabor.
Heprofitsintwoways：firstly，fromthedivisionoflaborandsecondly，andmoregenerally，fromthegrowingroleplayedbyhumanlaborinfashioningthenaturalproduct.Thelargerthehumanshareinacommodity，thelargertheprofitofdeadcapital.
Inoneandthesamesociety，theaverageratesofprofitoncapitalaremorenearlyuponalevelthanarethewagesofdifferentkindsoflabor.
[Smith，p.45]Inthedifferentemploymentsofcapital，theordinaryrateofprofitvariesmoreorlesswiththecertaintyoruncertaintyofthereturns;
\"theordinaryprofitofstock，thoughitriseswiththerisk，doesnotalwaysseemtoriseinproportiontoit.\"
[Smith，pp.99—100]Needlesstosay，profitsalsoriseifthemeansofcirculation（e.g.，papermoney）improveorbecomelessexpensive.
3.TheRuleofCapitaloverLaborandtheMotivesoftheCapitalist\"Theconsiderationofhisownprivateprofitisthesolemotivewhichdeterminestheownerofanycapitaltoemployiteitherinagriculture，inmanufactures，orinsomeparticularbranchofthewholesaleorretailtrade.Thedifferentquantitiesofproductivelaborwhichmayputitintomotion，andthedifferentvalueswhichitmayaddtotheannualproduceofthelandandlaborofthesociety，accordingasitisemployedinoneorotherofthosedifferentways，neverenterintohisthoughts.\"
[Smith，p.355]
\"Themostusefulemploymentofcapitalforthecapitalististhatwhich，withthesamedegreeofsecurity，yieldshimthelargestprofit;butthisemploymentisnotalwaysthemostusefulforsocietythemostusefulisthatwhichstimulatestheproductivepowerofitslandandlabor.\"
[Say，II，pp.130—31]
\"Theplansandprojectsoftheemployersofstockregulateanddirectallthemostimportantoperationsoflabor，andprofitistheendproposedbyallthoseplansandprojects.Buttherateofprofitdoesnot，likerentandwages，risewiththeprosperityandfallwiththedeclensionofthesociety.Onthecontrary，itisnaturallylowinrichandhighinpoorcountries，anditisalwayshighestincountrieswhicharegoingfastesttoruin.Theinterestofthisthirdorder[thosewholivebyprofit]，therefore，hasnotthesameconnectionwiththegeneralinterestofthesocietyasthatoftheothertwoTheinterestofthedealer，however，inanyparticularbranchoftradeormanufactures，isalwaysinsomerespectsdifferentfrom，andevenoppositeto，thatofthepublic.
Towidenthemarketandtonarrowthecompetition，isalwaystheinterestofthedealersandorderofmenwhoseinterestisneverexactlythesameasthatofthepublic，whohavegenerallyaninteresttodecisiveandeventooppressthepublic\"
[SmithI，pp.231—2]4.TheAccumulationofCapitalsandtheCompetitionamongtheCapitalistsTheincreaseofcapitals，whichraiseswages，tendstolowerprofits，asaresultofthecompetitionamongcapitalists.[Smith，p.78]
If，forexample，thecapitalwhichisnecessaryforthegrocerytradeofaparticulartown\"isdividedbetweentwodifferentgrocers，theircompetitionwilltendtomakebothofthemsellcheaperthanifitwereinthehandsofoneonly;andifitweredividedamong20，theircompetitionwouldbejustsomuchthegreater，andthechanceoftheircombiningtogether，inordertoraisetheprice，justsomuchtheless.\"
[SmithI，p.322]Sincewealreadyknowthatmonopolypricesareashighaspossible，sincetheinterestofthecapitalists，evenfromastraight—forwardlyeconomicpointofview，isopposedtotheinterestofsociety，andsincethegrowthofprofitsactsonthepriceofthecommoditylikecompoundinterest[Smith，pp.87—8]，itfollowsthatthesoledefenseagainstthecapitalistsiscompetition，whichintheviewofpoliticaleconomyhasthebeneficialeffectbothofraisingwagesandcheapeningcommoditiestotheadvantageoftheconsumingpublic.
But，competitionispossibleonlyifcapitalsmultiplyandareheldbymanydifferentpeople.Itisonlypossibletogeneratealargenumberofcapitalsasaresultofmultilateralaccumulation，sincecapitalingeneralstemsfromaccumulation.But，multilateralaccumulationinevitablyturnsintounilateralaccumulation.Competitionamongcapitalistsincreasesaccumulationofcapitals.Accumulation——which，undertheruleofprivateproperty，meansconcentrationofcapitalinfewhands——inevitablyensuesifcapitalsareallowedtofollowtheirownnaturalcourse.Itisonlythroughcompetitionthatthisnaturalproclivityofcapitalbeginstotakeshape.