However that portion of surplus-value which does not exist in other commodities but alongside of them in the form of money, consists of a portion of the annually produced gold only to the extent that a portion of the annual production of gold circulates for the realisation of the surplus-value. The other portion of money, which is continually in the hands of the capitalist class in varying portions, as the money-form of their surplus-value, is not an element of the annually produced gold, but of the mass of money previously accumulated in the country.
According to our assumption the annual production of gold, £500, just covers the annual wear of money. If we keep in mind only these £500and ignore that portion of the annually produced mass of commodities which is circulated by means of previously accumulated money, the surplus-value produced in commodity-form will find in the circulation process money for its conversion into money for the simple reason that on the other side surplus-value is annually produced in the form of gold. The same applies to the other parts of the gold product of £500 which replace the advanced money-capital.
Now, two things are to be noted here.
In the first place, it follows that the surplus-value spent by the capitalists as money, as well as the variable and other productive capital advanced by them in money, is actually the product of labourers, namely of the labourers engaged in the production of gold. They produce anew not only that portion of the gold product which is "advanced" to them as wages but also that portion of the gold product in which the surplus-value of the capitalist gold-producers is directly represented. Finally, as for that portion of the gold product which replaces only the constant capital-value advanced for its production, it re-appears in the form of money (or product in general) only through the annual work of the labourers. When the business started, it was originally expended by the capitalist in the form of money, which was not newly produced but formed a part of the circulating mass of social money. But to the extent that it is replaced by a new product, by additional gold, it is the annual product of the labourer. The advance on the part of the capitalist appears here, too, merely as a form which owes its existence to the fact that the labourer is neither the owner of his own means of production nor able to command, during production, the means of subsistence produced by other labourers.
In the second place however, as far as concerns that mass of money which exists independently of his annual replacement of £500 partly in the form of a hoard and partly in the form of circulating money, things must be, or rather must have been originally with it just as they are annually with regard to these £500. We shall return to this point at the close of this sub-section. [See: pp. 347-48 of this book. -- Ed .] But before then we wish to make a few additional remarks.
We have seen during our study of the turnover that, other circumstances remaining equal, changes in the length of the periods of turnover require changes in the amounts of money-capital, in order to carry on production on the same scale. The elasticity of the money-circulation must therefore be sufficient to adapt itself to this alternation of expansion and contraction.
If we furthermore assume other circumstances as remaining equal -- including the length, intensity, and productivity of the working-day -- but a different division of the value of the product between wages and surplus-value, so that either the former rises and the latter falls, or vice versa, the mass of the circulating money is not affected thereby. This change can take place without any expansion or contraction of the money currency. Let us consider particularly the case in which there is a general rise in wages, so that, under the assumptions made, there will be a general fall in the rate of surplus-value, but besides this, also according to our assumption, there will be no change in the value of the circulating mass of commodities. In this case there naturally is an increase in the money-capital which must be advanced as variable capital, hence in the amount of money which performs this function. But the surplus-value, and therefore also the amount of money required for its realisation, decreases by exactly the same amount by which the amount of money required for the function of variable capital increases. The amount of money required for the realisation of the commodity-value is not affected thereby, any more than this commodity-value itself. The cost price of the commodity rises for the individual capitalist but its social price of production remains unchanged. what is changed is the proportion in which, apart from the constant part of the value, the price of production of commodities is divided into wages and profit.
But, it is argued, a greater outlay of variable money-capital (the value of the money is, of course, considered constant) implies a larger amount of money in the hands of the labourers. This causes a greater demand for commodities on the part of the labourers. This, in turn, leads to a rise in the price of commodities. -- Or it is said: If wages rise, the capitalists raise the prices of their commodities. -- in either case, the general rise in wages causes a rise in commodity prices. Hence a greater amount of money is needed for the circulation of the commodities, no matter how the rise in prices is explained.
Reply to the first formulation: in consequence of a rise in wages, the demand of the labourers for the necessities of life will rise particularly.