Allkindsofquidproquo’sarejumbledtogetherwhenAdamSmithsays:”Wages，profit，andrent，arethethreeoriginalsourcesofallrevenueaswellasofallexchangeablevalue。Allotherrevenueisultimatelyderivedfromsomeoneorotherofthese。”BookI，Ch。6，p。48。
1Allmemberofsocietynotdirectlyengagedinreproduction，withorwithoutlabour，canobtaintheirshareoftheannualcommodity-product——inotherwords，theirarticlesofconsumption——primarilyoutofthehandsofthoseclassestowhichtheproductfirstaccrues——productivelabourers，industrialcapitalists，andlandlords。Tothatextenttheirrevenuesaremateriallyderivedfromwagesoftheproductivelabourers，profit，andrent，andappearthereforeasderivativevis-a-visthoseprimaryrevenues。Butontheotherhandtherecipientsoftheserevenues，derivedinthissense，drawthembyvirtueoftheirsocialfunctions——asaking，priest，professor，prostitute，soldier，etc。，andtheymay，therefore，regardthesefunctionsastheoriginalsourcesoftheirrevenue。
2——andhereAdamSmith’sridiculousblunderreachesitsclimax。Afterstartingbycorrectlydefiningthecomponentpartsofthevalueofthecommoditiesandthesumofthevalue-productincorporatedinthem，andthendemonstratinghowthesecomponentpartsformsomanydifferentsourcesofrevenue，[39]afterthusderivingtherevenuesfromthevalue，heproceedsintheoppositedirection——andthisremainsthepredominantconceptionwithhim——andturnstherevenuesfrom”componentparts”into”originalsourcesofallexchangeablevalue，”therebythrowingthedoorswideopentovulgareconomy。SeeourRoscher。[MarxhasinmindW。Roscher’sSystemderVokswirtschaft。BandI:DieGrundlagenderNationalö；konomie。Dritte，vermehrteundverbesserteAuflage。
StuttgartundAugsburg，1858——Ed。]3。TheConstantPartofCapitalLetusnowseehowAdamSmithtriestospirittheconstantpartofthecapital-valueawayfromthecommodity-value。”Inthepriceofcorn，forexample，onepartpaystherentofthelandlord。”
Theoriginofthisconstituentofvaluehasnomoretodowiththecircumstancethatitispaidtothelandlordandformsarevenueforhimintheshapeofrentthantheoriginoftheotherconstituentsofvaluehastodowiththefactthatasprofitandwagestheyformsourcesofrevenue。”Another[portion]paysthewagesormaintenanceofthelabourers”[”andlabouringcattle，”headds]”employedinproducingit，andthethirdpaystheprofitofthefarmer。Thesethreepartsseem”[theyseemindeed]”eitherimmediatelyorultimatelytomakeupthewholepriceofcorn。”[40]Thisentireprice，i。e。，thedeterminationofitsmagnitude，isabsolutelyindependentofitsdistributionamongthreekindsofpeople。”Afourthpart，itmayperhapsbethought，isnecessaryforreplacingthestockofthefarmer，orforcompensatingthewearandtearofhislabouringcattle，andotherinstrumentsofhusbandry。Butitmustbeconsideredthatthepriceofanyinstrumentofhusbandry，suchasalabouringhorse，isitselfmadeupofthesamethreeparts:therentofthelanduponwhichheisreared，thelabouroftendingandrearinghim，andtheprofitsofthefarmerwhoadvancesboththerentofthisland，andthewagesofthislabour。
Thoughthepriceofthecorn，therefore，maypaythepriceaswellasthemaintenanceofthehorse，thewholepricestillresolvesitselfeitherimmediatelyorultimatelyintothesamethreepartsofrent，labour”hemeanswages，”andprofit。”BookI，Ch。6，p。42。
ThisisverbatimallthatAdamSmithhastosayinsupportofhisastonishingdoctrine。Hisproofconsistssimplyintherepetitionofthesameassertion。
Headmits，forinstance，thatthepriceofcorndoesnotonlyconsistofvs，butalsoofthepriceofthemeansofproductionconsumedintheproductionofcorn，henceofacapital-valuenotinvestedinlabour-powerbythefarmer。But，hesays，thepricesofallthesemeansofproductionresolvethemselvesintovs，thesameasthepriceofcorn。Heforgets，however，toadd:and，moreover，intothepricesofthemeansofproductionconsumedintheirowncreation。Herefersusfromonebranchofproductiontoanother，andfromthattoathird。Thecontentionthattheentirepriceofcommoditiesresolvesitself”immediately”or”ultimately”intovswouldnotbeahollowsubterfugeonlyifhewereabletodemonstratethatthecommoditieswhosepriceresolvesitselfimmediatelyintocpriceofconsumedmeansofproductionvs，areultimatelycompensatedbycommoditieswhichcompletelyreplacethose”consumedmeansofproduction，”andwhicharethemselvesproducedbythemereoutlayofvariablecapital，i。e。，byamereinvestmentofcapitalinlabour-power。Thepriceoftheselastcommodity-productswouldthenbeimmediatelyvs。Consequentlythepriceoftheformer，cvs，wherecstandsfortheconstantpartofcapital，wouldalsobeultimatelyresolvableintovs。AdamSmithhimselfdidnotbelievethathehadfurnishedsuchaproofbyhisexampleofthecollectorsofScotchpebbles，who，accordingtohim1donotgeneratesurplus-valueofanydescription，butproduceonlytheirownwages，and2donotemployanymeansofproductiontheydo，however，employthem，suchasbaskets，sacks，andothercontainersforcarryingthepebbles。
WehavealreadyseenabovethatAdamSmithhimselflateronoverthrowshisowntheory，withouthoweverbeingconsciousofhiscontradictions。
Buttheirsourceistobefoundpreciselyinhisscientificpremises。Thecapitalconvertedintolabourproducesagreatervaluethanitsown。How？
SaysAdamSmith:bythelabourersimpartingduringtheprocessofproductiontothethingsonwhichtheyworkavaluewhichformsnotonlyanequivalentfortheirownpurchaseprice，butalsoasurplus-valueprofitandrent
apportionednottothembuttotheiremployers。Thatisalltheyaccomplish，andalltheycanaccomplish。Andwhatistrueoftheindustriallabourofonedayistrueofthelaboursetinmotionbytheentirecapitalistclassduringoneyear。Hencetheaggregatemassoftheannualvalueproducedbysocietycanresolveitselfonlyintovs，intoanequivalentbywhichthelabourersreplacethecapital-valueexpendedforthepurchaseoftheirownlabour-power，andintoanadditionalvaluewhichtheymustdeliveroverandabovethistotheiremployers。Butthesetwoelementsofcommodity-valueformatthesametimesourcesofrevenueforthevariousclassesengagedinreproduction:thefirstisthesourceofwages，therevenueofthelabourers；
thesecondthatofsurplus-value，aportionofwhichisretainedbytheindustrialcapitalistintheformofprofit，whileanotherisgivenupbyhimasrent，therevenueofthelandlord。Where，then，shouldanotherpor-tionofvaluecomefrom，whentheannualvalue-productcontainsnootherelementsthanvs？Weareproceedingherefromsimplereproduction。
Sincetheentirequantityofannuallabourresolvesitselfintolabourneededforthereproductionofthecapital-valuelaidoutinlabour-power，andintolabourneededforthecreationofsurplus-value，whereshouldthelabourfortheproductionofacapital-valuenotlaidoutinlabour-powercomefrom？
Thecaseisasfollows:
1AdamSmithdeterminesthevalueofacommoditybytheamountoflabourwhichthewage-laboureraddstothesubjectoflabour。Hecallsitliterally”materials，”sinceheisdealingwithmanufacture，whichitselfisworkingupproductsoflabour。Butthisdoesnotalterthematter。Thevaluewhichthelaboureraddstoathingandthis”adds”istheexpressionofAdamSmithisentirelyindependentofwhetherornotthisobjecttowhichvalueisaddedhaditselfanyvaluebeforethisaddition。Thelabourerthereforeproducesavalueintheformofacommodity。This，accordingtoAdamSmith，ispartlyanequivalentforhiswages，andthispart，then，isdeterminedbythemagnitudeofvalueofhiswages；dependingonthatmagnitudehehastoaddlabourinordertoproduceorreproduceavalueequaltothatofhiswages。Ontheotherhandthelaboureraddsmorelabouroverandabovethelimitsodrawn，andthiscreatessurplus-valueforthecapitalistemployinghim。Whetherthissurplus-valueremainsentirelyinthehandsofthecapitalistorpartsofitareyieldedbyhimtothirdpersons，doesnotintheleastaltereitherthequalitativethatisatallsurplus-valueorthequantitativemagnitudedeterminationofthesurplus-valueaddedbythewage-labourer。Itisvaluethesameasanyotherportionofthevalueoftheproduct，butitdiffersinthatthelabourerhasnotreceivedanyequivalentforit，norwillreceiveanylateron，inthat，onthecontrary，thisvalueisappropriatedbythecapitalistwithoutanyequivalent。Thetotalvalueofacommodityisdeterminedbythequantityoflabourexpendedbythelabourerinitsproduction；oneportionofthistotalvalueisdeterminedbythefactthatitisequaltothevalueofthewages，i。e。，anequivalentforthem。Thesecondpart，thesurplus-value，is，therefore，necessarilylikewisedeterminedasequaltothetotalvalueoftheproductminusthatpartofitsvaluewhichisequivalenttothewages；henceequaltotheexcessofthevalueproducedinthemakingofthecommodityoverthatpartofthevaluecontainedinitwhichisanequivalentforhiswages。
2Thatwhichistrueofacommodityproducedinsomeindividualindustrialestablishmentbyanyindividuallaboureristrueoftheannualproductofallbranchesofbusinessasawhole。Thatwhichistrueoftheday’sworkofsomeindividualproductivelaboureristrueoftheyear’sworksetinmotionbytheentireclassofproductivelabourers。It”fixes”AdamSmith’sexpressionintheannualproductofatotalvaluedeterminedbythequantityoftheannuallabourexpended，andthistotalvalueresolvesitselfintooneportiondeterminedbythatpartoftheannuallabourwherewiththeworking-classcreatesanequivalentofitsannualwages，infact，thesewagesthemselves；andintoanotherportiondeterminedbytheadditionalannuallabourbywhichthelabourercreatessurplus-valueforthecapitalistclass。Theannualvalue-productcontainedintheannualproductconsiststhereforeofbuttwoelements:namely，theequivalentoftheannualwagesreceivedbytheworking-class，andthesurplus-valueannuallyprovidedforthecapitalistclass。Now，theannualwagesaretherevenueoftheworking-class，andtheannualquantityofsurplus-valuetherevenueofthecapitalistclass；hencebothofthemrepresenttherelativesharesintheannualfundforconsumptionthisviewiscorrectwhendescribingsimplereproductionandarerealisedinit。Thereis，then，noroomleftanywherefortheconstantcapital-value，forthereproductionofthecapitalfunctioningintheformofmeansofproduction。AndAdamSmithstatesexplicitlyintheintroductiontohisworkthatallportionsofthevalueofcommoditieswhichserveasrevenuecoincidewiththeannualproductoflabourintendedforthesocialfundforconsumption:”Toexplaininwhathasconsistedtherevenueofthegreatbodyofthepeople，orwhathasbeenthenatureofthosefunds，which，indifferentagesandnations，havesuppliedtheirannualconsumption，istheobjectofthesefirstFourBooks。”P。12。
Andintheveryfirstsentenceoftheintroductionweread:”Theannuallabourofeverynationisthefund，whichoriginallysuppliesitwithallthenecessariesandconveniencesoflifewhichitannuallyconsumes，andwhichconsistsalwayseitherintheimmediateproducedofthatlabour，orinwhatispurchasedwiththatproducefromothernations。”P。11。
NowAdamSmith’sfirstmistakeconsistsinequatingthevalueoftheannualproducttothenewlyproducedannualvalue。
Thelatterisonlytheproductoflabourofthepastyear，theformerincludesbesidesallelementsofvalueconsumedinthemakingoftheannualproduct，butwhichwereproducedintheprecedingandpartlyevenearlieryears:meansofproductionwhosevaluemerelyre-appears——
which，asfarastheirvalueisconcerned，havebeenneitherproducednorreproducedbythelabourexpendedinthepastyear。BythisconfusionAdamSmithspiritsawaytheconstantportionofthevalueoftheannualproduct。
Thisconfusionrestsonanothererrorinhisfundamentalconception:Hedoesnotdistinguishthetwo-foldnatureoflabouritself:oflabourwhichcreatesvaluebyexpendinglabour-power，andoflabourasconcrete，usefulwork，whichcreatesarticlesofuseuse-values。Thetotalquantityofthecommoditiesfabricatedannually，inotherwords，thetotalannualproductistheproductoftheusefullabouractiveduringthepastyear；itisonlyduetothefactthatsociallyemployedlabourwasspentinaramifiedsystemofusefulkindsoflabourthatallthesecommoditiesexist；itisduetothisfactalonethatthevalueofthemeansofproductionconsumedintheproductionofcommoditiesandreappearinginanewbodilyformispreservedintheirtotalvalue。Thetotalannualproduct，then，istheresultoftheusefullabourexpendedduringtheyear；
butonlyapartofthevalueoftheannualproducthasbeencreatedduringtheyear；thisportionistheannualvalue-product，inwhichthequantityoflaboursetinmotionduringtheyearisrepresented。
Hence，ifAdamSmithsaysinthepassagejustcited:”Theannuallabourofeverynationisthefundwhichoriginallysuppliesitwithallthenecessariesandconveniencesoflifewhichitannuallyconsumes，etc。，”hetakestheone-sidedstandpointofsolelyusefullabour，whichhasindeedgivenallthesemeansofsubsistencetheirconsumableform。Butheforgetsthatthiswasimpossiblewithouttheassistanceofinstrumentsandsubjectsoflaboursuppliedbyformeryears，andthat，therefore，the”annuallabour，”whileitcreatevalue，didnotcreateallthevalueoftheproductsfabricatedbyit；thatthevaluenewlyproducedissmallerthanthevalueoftheproduct。
WhilewecannotreproachAdamSmithforgoinginthisanalysisnofartherthanallhissuccessorsalthoughastepintherightdirectioncouldalreadybediscernedamongthephysiocrats，hesubsequentlygetslostinachaosandthismainlybecausehis”esoteric”conceptionofthevalueofcommoditiesingeneralisconstantlycontravenedbyexotericconceptions，whichonthewholeprevailwithhim，andyethisscientificinstinctpermitstheesotericstandpointtore-appearfromtimetotime。4。CapitalandRevenueinAdamSmithThatportionofthevalueofeverycommodityandthereforealsooftheannualproductwhichisbutanequivalentofthewages，isequaltothecapitaladvancedbythecapitalistforlabour-power；i。e。，isequaltothevariableportionofthetotalcapitaladvanced。Thecapitalistrecoversthisportionofthetotalcapitalthroughaportionofthenewlyproducedvalueofthecommoditiessuppliedbythewage-labourers。Whetherthevariablecapitalisadvancedinthesensethatthecapitalistpaysthelabourerinmoneyforhisshareinaproductwhichisnotyetreadyforsaleorwhich，thoughready，hasnotyetbeensoldbythecapitalist，orwhetherhepayshimwithmoneyalreadyobtainedbythesaleofcommoditiespreviouslysuppliedbythelabourer，orwhetherhehasdrawnthismoneyinadvancebymeansofcredit——inallthesecasesthecapitalistexpendsvariablecapital，whichpassesintothehandsofthelabourersintheformofmoney，andontheotherhandhepossessestheequivalentofthiscapital-valueinthatportionofthevalueofhiscommoditiesinwhichthelabourerhasproducedanewhisshareofitstotalvalue，inotherwords，inwhichhehasproducedthevalueofhisownwages。Insteadofgivinghimthisportionofthevalueinthebodilyformofhisownproduct，thecapitalistpaysittohiminmoney。Forthecapitalistthevariableportionofhisadvancedcapital-valuenowexistsintheformofcommodities，whilethelabourerhasreceivedtheequivalentforhissoldlabour-powerintheformofmoney。
Nowwhilethatportionofthecapitaladvancedbythecapitalist，whichhasbeenconvertedbythepurchaseoflabour-powerintovariablecapital，functionsintheprocessofproductionitselfasoperativelabour-powerandbytheexpenditureofthispowerisproducedanewasanewvalue，intheformofcommodities，i。e。，isreproduced——henceareproduction，ornewproduction，ofadvancedcapital-value——thelabourerspendsthevalue，orprice，ofhissoldlabour-poweronmeansofsubsistence，onmeansforthereproductionofhislabour-power。Anamountofmoneyequaltothevariablecapitalformshisincome，hencehisrevenue，whichlastsonlysolongashecansellhislabour-powertothecapitalist。
Thecommodityofthewage-labourer——hislabourpower——servesasacommodityonlytotheextentthatitisincorporatedinthecapitalofthecapitalist，actsascapital；ontheotherhandthecapitalexpendedbythecapitalistasmoney-capitalinthepurchaseoflabour-powerfunctionsasarevenueinthehandsoftheselleroflabour-power，thewagelabourer。
Variousprocessesofcirculationandproductioninterminglehere，whichAdamSmithdoesnotdistinguish。
First:Actspertainingtotheprocessofcirculation。
Thelabourersellshiscommodity——labour-power——tothecapitalist；
themoneywithwhichthecapitalistbuysitisfromhispointofviewmoneyinvestedfortheproductionofsurplus-value，hencemoney-capital；itisnotspentbutadvanced。Thisistherealmeaningof”advance”——theavanceofthephysiocrats——nomatterwherethecapitalistgetsthemoney。Everyvaluewhichthecapitalistpaysoutforthepurposesoftheproductiveprocessisadvancedfromhispointofview，regardlessofwhetherthistakesplacebeforeorpostfestum；itisadvancedtotheprocessofproductionitself。Thesametakesplacehereasineveryothersaleofcommodities:
Thesellergivesawayause-valueinthiscasehislabour-powerandreceivesitsvaluerealisesitspriceinmoney；thebuyergivesawayhismoneyandreceivesinreturnthecommodityitself——inthiscaselabour-power。
Second:Intheprocessofproductionthepurchasedlabour-powernowformsapartofthefunctioningcapital，andthelabourerhimselfservesheremerelyasaspecialbodilyformofthiscapital，distinguishedfromitselementsexistinginthebodilyformofmeansofproduction。Duringtheprocess，byexpendinghislabour-power，thelaboureraddsvaluetothemeansofproductionwhichheconvertsintoproductsequaltothevalueofhislabour-powerexclusiveofsurplus-value；hethereforreproducesforthecapitalistintheformofcommoditiesthatportionofhiscapitalwhichhasbeen，orhastobe，advancedbyhimforwages，producesforhimanequivalentofthelatter；hencehereproducesforthecapitalistthatcapitalwhichthelattercan”advance”oncemoreforthepurchaseoflabour-power。
Third:Inthesaleofacommodityoneportionofitssellingpricereplacesthevariablecapitaladvancedbythecapitalist，wherebyontheonehandheisenabledanewtobuylabour-power，andthelabourerontheothertosellitanew。
Inallpurchasesandsalesofcommodities——sofarasonlythesetransactionsareunderdiscussion——itisquiteimmaterialwhatbecomesoftheproceedsthesellerreceivesforhiscommodities，andwhatbecomesoftheboughtarticlesofuseinthehandsofthebuyer。Hence，sofarasthemereprocessofcirculationisconcerned，itisquiteimmaterialthatthelabour-powerboughtbythecapitalistreproducescapital-valueforhim，andthatontheotherhandthemoneyreceivedbythelabourerasthepurchase-priceofhislabour-powerconstituteshisrevenue。Themagnitudeofvalueofthelabourer’sarticleofcommerce，hislabour-power，isnotaffectedeitherbyitsforming”revenue”forhimorbythefactthattheuseofthisarticleofcommercebythebuyerreproducescapital-valueforthisbuyer。
Sincethevalueoflabour-power——i。e。，theadequatesellingpriceofthiscommodity——isdeterminedbythequantityoflabourrequiredforitsreproduction，andthisquantityoflabouritselfisheredeterminedbythatneededfortheproductionofthenecessarymeansofsubsistenceofthelabourer，henceforthemaintenanceofhisexistence，thewagesbecometherevenueonwhichthelabourerhastolive。
Itisentirelywrong，whenAdamSmithsaysp。223:”Thatportionofthestockwhichislaidoutinmaintainingproductivehands……
afterhavingservedinthefunctionofacapitaltohim[thecapitalist]……constitutesarevenuetothem”[thelabourers]。Themoneywithwhichthecapitalistpaysforthelabour-powerpurchasedbyhim”servesinthefunctionofacapitaltohim，”sincehetherebyincorporateslabour-powerinthematerialconstituentsofhiscapitalandthusenableshiscapitaltofunctionaltogetherasproductivecapital。Wemustmakethisdistinction:
Thelabour-powerisacommodity，notcapital，inthehandsofthelabourer，anditconstitutesforhimarevenuesolongashecancontinuouslyrepeatitssale；itfunctionsascapitalafteritssale，inthehandsofthecapitalist，duringtheprocessofproductionitself。Thatwhichhereservestwiceislabour-power:asacommoditywhichissoldatitsvalue，inthehandsofthelabourer；asapower-producingvalueanduse-value，inthehandsofthecapitalistwhohasboughtit。Butthelabourerdoesnotreceivethemoneyfromthecapitalistuntilafterhehasgivenhimtheuseofhislabour-power，afterithasalreadybeenrealisedinthevalueoftheproductoflabour。Thecapitalistpossessesthisvaluebeforehepaysforit。Henceitisnotthemoneywhichfunctionstwice:
first，asthemoney-formofthevariablecapital，andthenaswages。Onthecontraryitislabour-powerwhichhasfunctionedtwice:first，asacommodityinthesaleoflabour-powerinstipulatingtheamountofwagestobepaid，moneyactsmerelyasanidealmeasureofvalueandneednotevenbeinthehandsofthecapitalist；secondly，intheprocessofproduction，inwhichitfunctionsascapital，i。e。，asanelement，inthehandsofthecapitalist，creatinguse-valueandvalue。Labour-poweralreadysupplied，intheformofcommodities，theequivalentwhichistobepaidtothelabourer，beforeitispaidbythecapitalisttothelabourerinmoney-form。Hencethelabourerhimselfcreatesthefundoutofwhichthecapitalistpayshim。Butthisisnotall。
Themoneywhichthelabourerreceivesisspentbyhiminordertopreservehislabour-power，or——viewingthecapitalistclassandtheworking-classintheirtotality——inordertopreserveforthecapitalisttheinstrumentbymeansofwhichalonehecanremainacapitalist。
Thusthecontinuouspurchaseandsaleoflabour-powerperpetuatesontheonehandlabour-powerasanelementofcapital，byvirtueofwhichthelatterappearsasthecreatorofcommodities，articlesofusehavingvalue，byvirtueofwhich，furthermore，thatportionofcapitalwhichbuyslabour-poweriscontinuallyrestoredbylabour-power’sownproduct，andconsequentlythelabourerhimselfconstantlycreatesthefundofcapitaloutofwhichheispaid。Ontheotherhandtheconstantsaleoflabour-powerbecomesthesource，everrenewingitself，ofthemaintenanceofthelabourerandhencehislabour-powerappearsasthatfacultythroughwhichhesecurestherevenuebywhichhelives。Revenueinthiscasesignifiesnothingelsethanaappropriationofvalueseffectedbyeverrepeatedsalesofacommoditylabour-power，thesevaluesservingonlyforthecontinualreproductionofthecommoditytobesold。AndtothisextentSmithisrightwhenhesaysthattheportionofthevalueoftheproductcreatedbythelabourerhimselfforwhichthecapitalistpayshimanequivalentintheformofwages，becomesthesourceofrevenueforthelabourer。Butthisdoesnotalterthenatureormagnitudeofthisportionofthevalueofthecommodityanymorethanthevalueofthemeansofproductionischangedbythefactthattheyfunctionascapital-values，orthenatureandmagnitudeofastraightlinearechangedbythefactthatitservesasthebaseofsometriangleorasthediameterofsomeellipse。Thevalueoflabour-powerremainsquiteasindependentlydefiniteasthatofthosemeansofproduction。
Thisportionofthevalueofacommodityneitherconsistsofrevenueasanindependentfactorconstitutingthisvalue-partnordoesitresolveitselfintorevenue。Whilethisnewvalueconstantlyreproducedbythelabourerconstitutesasourceofrevenueforhim，hisrevenueconverselyisnotaconstituentofthenewvalueproducedbyhim。Themagnitudeofthesharepaidtohimofthenewvaluecreatedbyhimdeterminesthevalue-magnitudeofhisrevenue，notviceversa。Thefactthatthispartofthenewlycreatedvalueformsarevenueforhim，indicatesmerelywhatbecomesofit，showsthecharacterofitsapplication，andhasnomoretodowithitsformationthanwiththatofanyothervalue。Ifmyreceiptsaretenshillingsaweekthatchangesnothinginthenatureofthevalueofthetenshillings，norinthemagnitudeoftheirvalue。Asinthecaseofeveryothercommoditysointhatoflabour-poweritsvalueisdeterminedbytheamountofthislabourisnecessaryforitsreproduction；thattheamountofthislabourisdeterminedbythevalueofthelabourer’snecessarymeansofsubsistence，henceisequaltothelabourrequiredforthereproductionoftheveryconditionsofhislife——thatispeculiarforthiscommoditylabour-power，butnomorepeculiarthanthefactthatthevalueoflabouringcattleisdeterminedbythevalueofthemeansofsubsistencenecessaryforitsmaintenance，i。e。，bytheamountofhumanlabournecessarytoproducethesemeansofsubsistence。
Butitisthiscategoryof”revenue”whichistoblameforalltheharmfulconfusioninAdamSmith。Thevariouskindsofrevenueformwithhimthe”componentparts”oftheannuallyproduced，newlycreatedcommodity-value，while，viceversa，thetwopartsintowhichthiscommodity-valueresolvesitselfforthecapitalist——theequivalentofhisvariablecapitaladvancedintheformofmoneywhenpurchasinglabour，andtheotherportionofthevalue，thesurplus-value，whichlikewisebelongstohimbutdidnotcosthimanything——formsourcesofrevenue。Theequivalentofthevariablecapitalisadvancedagainforlabour-powerandtothatextentformsarevenueforthelabourerintheshapeofwages；sincetheotherportion，thesurplus-value，doesnotservetoreplaceanyadvanceofcapitalforthecapitalist，itmaybespentbyhiminarticlesofconsumptionbothnecessitiesandluxuriesorconsumedasrevenueinsteadofformingcapital-valueofanydescription。Commodity-valueitselfisthepreliminaryconditionofthisrevenueanditscomponentpartsdiffer，fromthepointofviewofthecapitalist，onlytotheextentthattheyconstituteeitheranequivalentforanexcessoverthevariablecapital-valueadvancedbyhim。Bothofthemconsistofnothingbutlabour-powerexpendedduringtheproductionofcommodities，renderedfluentinlabour。Theyconsistofoutlay，notincomeorrevenue——ofoutlayoflabour。
Inaccordancewiththequidproquo，bywhichtherevenuebecomesthesourceofcommodity-valueinsteadofthecommodity-valuebeingthesourceofrevenue，thevalueofcommoditiesnewhastheappearanceofbeing”composed”ofthevariouskindsofrevenue；theserevenuesaredeterminedindependentlyofoneanother，andthetotalvalueofcommoditiesisdeterminedbytheadditionofthevaluesoftheserevenues。Butnowthequestionishowtodeterminethevalueofeachoftheserevenueswhicharesupposedtoformcommodity-value。Inthecaseofwagesitcanbedone，forwagesrepresentthevalueoftheircommodity，labour-power，andthisvalueisdeterminablethesameasthatofallothercommoditiesbythelabourrequiredforthereproductionofthiscommodity。Butsurplus-value，or，asAdamSmithhasit，itstwoforms，profitandrent，howaretheydetermined？
HereAdamSmithhasbutemptyphrasestooffer。Atonetimeherepresentswagesandsurplus-valueorwagesandprofitascomponentpartsofthevalue，orprice，ofcommodities；atanother，andalmostinthesamebreath，aspartsintowhichthepriceofcommodities”resolvesit-self”；butthismeansonthecontrarythatthecommodity-valueisthethinggivenfirstandthatdifferentpartsofthisgivenvaluefallintheformofdifferentrevenuestotheshareofdifferentpersonsengagedintheproductiveprocess。
Thisisbynomeansidenticalwiththenotionthatvalueis”composed”
ofthesethree”componentparts。”IfIdeterminethelengthsofthreedifferentstraightlinesindependently，andthenformoutofthesethreelinesas”componentparts”afourthstraightlineequaltotheirsum，itisbynomeansthesameprocedureaswhenIhavesomegivenstraightlinebeforemeandforsomepurposedivideit，”resolve”it，sotosay，intothreedifferentparts。Inthefirstcase，thelengthofthelinechangesthroughoutwiththelengthsofthethreelineswhosesumitis；inthesecondcase，thelengthsofthethreepartsofthelinearefromtheoutsetlimitedbythefactthattheyarepartsofalineofgivenlength。
Asamatteroffact，ifweadheretothatpartofSmith’sexpositionwhichiscorrect，namely，thatthevaluenewlycreatedbytheannuallabourandcontainedintheannualsocialcommodity-productthesameasineveryindividualcommodity，oreverydaily，weekly，etc。，product
isequaltothevalueofthevariablecapitaladvancedi。e。，tothevalue-partintendedtopurchasenewlabour-powerplusthesurplus-valuewhichthecapitalistcanrealiseinmeansofhisindividualconsumption——simplereproductionbeingassumedandothercircumstancesremainingthesame；
ifwefurthermorekeepinmindthatAdamSmithlumpstogetherlabour，sofarasitcreatesvalueandisanexpenditureoflabour-power，andlabour，sofarasitcreatesusevalue，i。e。，isexpendedinauseful，appropriatemanner——thentheentireconceptionamountstothis:Thevalueofeverycommodityistheproductoflabour；hencethisisalsotrueofthevalueoftheproductoftheannuallabourorofthevalueofsociety’sannualcommodity-product。Butsincealllabourresolvesitself1intonecessarylabour-time，inwhichthelabourerreproducesmerelyanequivalentforthecapitaladvancedinthepurchaseofhislabour-power，and2intosurplus-labour，bywhichhesuppliesthecapitalistwithavalueforwhichthelatterdoesnotgiveanyequivalent，hencesurplus-value，itfollowsthatallcommodityvaluecanresolveitselfonlyintothesetwocomponentparts，sothatultimatelyitformsarevenuefortheworking-classintheformofwages，andforthecapitalistclassintheformofsurplus-value。Asfortheconstantcapital-value，i。e。，thevalueofthemeansofproductionconsumedinthecreationoftheannualproduct，itcannotbeexplainedhowthisvaluegetsintothatofthenewproductexceptforthephrasethatthecapitalistchargesthebuyerwithitinthesaleofhisgoods，butultimately，sincethemeansofproductionarethemselvesproductsoflabour，thisportionofvaluecan，inturn，consistonlyofanequivalentofthevariablecapitalandofsurplus-value，ofaproductofnecessarylabourandofsurplus-labour。
Thefactthatthevaluesofthesemeansofproductionfunctioninthehandsoftheiremployersascapital-valuesdoesnotpreventthemfromhaving”originally，”inthehandsofothersifwegotothebottomofthematter——eventhoughatsomeprevioustime——resolvedthemselvesintothesametwoportionsofvalue，henceintotwodifferentsourcesofrevenue。
Onepointhereiniscorrect:thatthematterpresentsitselfdifferentlyinthemovementofsocialcapital，i。e。，ofthetotalityofindividualcapitals，fromthewayitpresentsitselfforeachindividualcapitalconsideredseparately，hencefromthestandpointofeachindividualcapitalist。Forthelatterthevalueofcommoditiesresolvesitselfinto1aconstantelementafourthone，asAdamSmithsays，and2thesumofwagesandsurplus-value，orwages，profitandrent。ButfromthepointofviewofsocietythefourthelementofAdamSmith，theconstantcapital-value，disappears。5。RecapitulationTheabsurdformulathatthethreerevenues，wages，profitandrent，formthethree”componentparts”ofthevalueofcommoditiesoriginateswithAdamSmithfromthemoreplausibleideathatthevalueofcommodities”resolvesitself”intothesethreecomponentparts。Thisislikewiseincorrect，evengrantedthatthevalueofcommoditiesisdivisibleonlyintoanequivalentoftheconsumedlabour-powerandthesurplus-valuecreatedbyit。Butthemistakerestsheretooonadeeper，atruefoundation。Capitalistproductionisbasedonthefactthattheproductivelabourersellshisownlabour-power，ashiscommodity，tothecapitalist，inwhosehandsitthenfunctionsmerelyasanelementofhisproductivecapital。Thistransaction，whichpertainstocirculation——thesaleandpurchaseoflabour-power——notonlyinauguratestheprocessofproduction，butalsodeterminesimplicitlyitsspecificcharacter。Theproductionofause-value，andeventhatofacommodityforthiscanbecarriedonalsobyindependentproductivelabourers，ishereonlyameansofproducingabsoluteandrelativesurplus-valueforacapitalist。Forthisreasonwehaveseenintheanalysisoftheprocessofproductionthattheproductionofabsoluteandrelativesurplus-valuedetermines1thedurationofthedailylabour-processand2theentiresocialandtechnicalconfigurationofthecapitalistprocessofproduction。
Withinthisprocessthereisrealisedthedistinctionbetweenthemereconservationofvalueoftheconstantcapital-value，theactualreproductionofadvancedvalueequivalentoflabour-power，andtheproductionofsurplus-value，i。e。，ofvalueforwhichthecapitalisthasneitheradvancedanequivalentpreviouslynorwilladvanceonepostfestum。
Theappropriationofsurplus-value——avalueinexcessoftheequivalentofthevalueadvancedbythecapitalist——althoughinauguratedbythepurchaseandsaleoflabour-power，isanactperformedwithintheprocessofproductionitself，andformsanessentialelementofit。
Theintroductoryact，whichconstitutesanactofcirculation——thepurchaseandsaleoflabour-power——itselfrestsonadistributionoftheelementsofproductionwhichprecededandpresupposedthedistributionofthesocialproducts，namelyontheseparationoflabour-powerasacommodityofthelabourerfromthemeansofproductionasthepropertyofnon-labourers。
Howeverthisappropriationofsurplus-value，orthisseparationoftheproductionofvalueintoareproductionofadvancedvalueandaproductionofnewvaluesurplus-valuewhichdoesnotreplaceanyequivalent，doesnotalterinanywaythesubstanceofvalueitselforthenatureoftheproductionofvalue。Thesubstanceofvalueisandremainsnothingbutexpendedlabour-power——labourindependentofthespecific，usefulcharacterofthisexpenditure。Aserfforinstanceexpendshislabour-powerforsixdays，laboursforsixdays，andthefactofthisexpenditureassuchisnotalteredbythecircumstancethathemaybeworkingthreedaysforhimself，onhisownfield，andthreedaysforhislord，onthefieldofthelatter。
Bothhisvoluntarylabourforhimselfandhisforcedlabourforhislordareequallylabour；sofarasthislabourisconsideredwithreferencetothevalues，ortotheusefularticlescreatedbyit，thereisnodifferenceinhissixdaysoflabour。Thedifferencerefersmerelytothedifferentconditionsbywhichtheexpenditureofhislabour-powerduringbothhalvesofhislabour-timeofsixdaysiscalledforth。Thesameappliestothenecessaryandsurplus-labourofthewage-labourer。
Theprocessofproductionexpiresinthecommodity。Thefactthatlabour-powerwasexpendedinitsfabricationnowappearsasamaterialpropertyofthecommodity，asthepropertyofpossessingvalue。Themagnitudeofthisvalueismeasuredbytheamountoflabourexpended；thevalueofacommodityresolvesitselfintonothingelsebesidesandisnotcomposedofanythingelse。IfIhavedrawnastraightlineofdefinitelength，Ihave，tostartwith，”produced”astraightlinetrue，onlysymbolically，asIknowbeforehand
byresorttotheartofdrawing，whichispractisedinaccordancewithcertainruleslawsindependentofmyself。IfIdividethislineintothreesectionswhichmaycorrespondtoacertainproblem，everyoneofthesesectionsremainsastraightline，andtheentireline，whosesectionstheyare，doesnotresolveitselfbythisdivisionintoanythingdifferentfromastraightline，forinstanceintosomekindofcurve。NeithercanIdividealineofagivenlengthinsuchawaythatthesumofitspartsisgreaterthantheundividedlineitself；hencethelengthoftheundividedlineisnotdeterminedbyanyarbitrarilyfixedlengthsofitsparts。Viceversa，therelativelengthsofthesepartsarelimitedfromtheoutsetbythesizeofthelinewhosepartstheyare。
Inthisacommodityproducedbyacapitalistdoesnotdiffereinanywayfromthatproducedbyanindependentlabourerorbycommunitiesofworking-peopleorbyslaves。Butinthepresentcasetheentireproductoflabour，aswellasitsentirevalue，belongstothecapitalist。Likeeveryotherproducerhehastoconverthiscommoditybysaleintomoneybeforehecanmanipulateitfurther；hemustconvertitintotheformoftheuniversalequivalent。
Letusexaminethecommodity-productbeforeitisconvertedintomoney。
Itbelongswhollytothecapitalist。Ontheotherhandasausefulproductoflabour，ause-value，itisentirelytheproductofapastlabour-process。
Notsoitsvalue。Oneportionofthisvalueisbutthevalueofthemeansofproductionexpendedintheproductionofthiscommodityandre-appearinginanewform。Thisvaluehasnotbeenproducedduringtheprocessofproductionofthiscommodity，forthemeansofproductionpossessedthisvaluebeforetheprocessofproduction，independentlyofit；theyenteredintothisprocessasthevehiclesofthisvalue；itisonlyitsformofappearancethathasbeenrenewedandaltered。Thisportionofthevalueofthecommodityconstitutesforthecapitalistanequivalentoftheportionoftheconstantcapital-valueadvancedandconsumedintheproductionofthecommodity。
Itexistedpreviouslyintheformofmeansofproduction；itexistsnowasacomponentpartofthevalueofthenewlyproducedcommodity。Assoonasthiscommodityhasbeenturnedintomoney，thevaluenowexistingintheformofmoneymustbereconvertedintomeansofproduction，intoitsoriginalformdeterminedbytheprocessofproductionanditsfunctioninit。Nothingisalteredinthecharacterofthevalueofacommoditybythefunctionofthisvalueascapital。
Asecondportionofthevalueofacommodityisthevalueofthelabour-powerwhichthewage-workersellstothecapitalist。Itisdetermined，thesameasthatofthemeansofproduction，independentlyoftheprocessofproductionintowhichlabour-poweristoenter，anditisfixedinanactofcirculation，thepurchaseandsaleoflabour-power，beforethelatterenterstheprocessofproduction。Bymeansofhisfunction——theexpenditureoflabour-power——thewage-labourerproducesacommodity-valueequaltothevaluewhichthecapitalisthastopayhimfortheuseofhislabour-power。Hegivesthisvaluetothecapitalistintheformofacommodityandispaidforitbyhiminmoney。Thatthisportionofthecommodity-valueisforthecapitalistbutanequivalentforthevariablecapitalwhichhehastoadvanceinwagesdoesnotalterinanywaythefactthatitisacommodity-valuenewlycreatedduringtheprocessofproductionandconsistingofnothingbutwhatsurplus-valueconsistsof，namely，pastexpenditureoflabour-power。
Noristhistruthaffectedbythefactthatthevalueofthelabour-powerpaidbythecapitalisttothelabourerintheformofwagesandassumestheformofarevenueforthelabourer，andthatnotonlylabour-poweriscontinuallyreproducedtherebybutalsotheclassofwage-labourersassuch，andthusthebasisoftheentirecapitalistproduction。
However，thesumofthesetwoportionsofvaluedoesnotcomprisethewholeofcommodity-value。Thereremainsanexcessoverbothofthem——
thesurplus-value。This，liketheportionofvaluewhichreplacesthevariablecapitaladvancedinwages，isavaluenewlycreatedbythelabourerduringtheprocessofproduction——congealedlabour。Butitdoesnotcosttheowneroftheentireproduct，thecapitalist，anything。Thiscircumstanceactuallypermitsthecapitalisttoconsumethesurplus-valueentirelyasrevenue，unlesshehastosurrenderpartsofittootherparticipants——
suchasground-renttothelandlord，inwhichcasesuchportionsconstitutearevenueofsuchthirdpersons。Thissamecircumstancewasthecompellingmotivethatinducedourcapitalisttoengageatallinthemanufactureofcommodities。Butneitherhisoriginalbenevolentintentionofsnatchingsurplus-value，noritssubsequentexpenditureasrevenuebyhimorothersaffectsthesurplus-valueassuch。Theydonotimpairthefactthatitiscongealedunpaidlabour，northemagnitudeofthissurplus-value，whichisdeterminedbyentirelydifferentconditions。
However，ifAdamSmithwantedtooccupyhimself，ashedid，withtheroleofthevariouspartsofthisvalueinthetotalprocessofreproduction，evenwhilehewasinvestigatingthevalueofcommodities，itwouldbeevidentthatwhilesomeparticularpartsfunctionasrevenue，othersfunctionjustascontinuallyascapital——andconsequently，accordingtohislogic，shouldhavebeendesignatedasconstituentpartsofthecommodity-value，orpartsintowhichthisvalueresolvesitself。
AdamSmithidentifiestheproductionofcommoditiesingeneralwithcapitalistcommodityproduction；themeansofproductionaretohimfromtheoutset”capital，”labourisfromtheoutsetwage-labour，andtherefore”thenumberofusefulandproductivelabourers……iseverywhereinproportiontothequantityofcapitalstockwhichemployedinsettingthemtowork。”
Introduction，p。12。Inshort，thevariousfactorsofthelabour-process——bothobjectiveandpersonal——appearfromthefirstwiththemaskscharacteristicoftheperiodofcapitalistproduction。Theanalysisofthevalueofcommoditiesthereforecoincidesdirectlywiththeconsiderationoftheextenttowhichthisvalueisontheonehandamereequivalentofcapitallaidout，andontheother，towhatextentitforms”free”value，valuenotreplacinganyadvancedcapital-value，orsurplus-value。Comparedfromthispointofview，partsofcommodity-valuethustransformthemselvesimperceptiblyintoitsindependent”componentparts，”andfinallyintothe”sourcesofallvalue。”Afurtherconclusionisthatcommodity-valueiscomposedof，or”resolvesitself”into，revenuesofvariouskinds，sothattherevenuesdonotconsistofcommodity-valuesbutthecommodity-valueconsistsof”revenues。”Aslittle，however，asthenatureofacommodity-valueassuch，orofmoneyassuch，ischangedthroughtheirfunctioningascapital-value，justsolittleisthenatureofacommodity-valueascapital-value，justsolittleisthenatureofacommodity-valuechangedonaccountofitsfunctioninglaterasarevenueforsomeparticularperson。ThecommoditywithwhichAdamSmithhastodealisfromtheoutsetcommodity-capitalwhichcomprisessurplus-valueinadditiontothecapital-valueconsumedintheproductionofthecommodity；itisthereforeacommodityproducedcapitalistically，theresultofthecapitalistprocessofproduction。Itwouldhavebeennecessary，then，toanalysefirstthisprocess，andalsotheprocessofself-expansionandoftheformationofvalue，whichitincludes。
Sincethisprocessisinitsturnpremisedbythecirculationofcommodities，itsdescriptionrequiresalsoapreliminaryandindependentanalysisofthecommodity。However，evenwhereAdamSmithattimeshits”esoterically”
uponthecorrectthinghealwaystakesintoconsiderationtheformationofvalueonlyasincidentaltotheanalysisofcommodities，i。e。，totheanalysisofcommodity-capital。III。LATERECONOMISTS[41]
RicardoreproducesthetheoryofAdamSmithalmostverbatim:”Itmustbeunderstoodthatalltheproductionsofacountryareconsumed；butitmakesthegreatestdifferenceimaginablewhethertheyareconsumedbythosewhoreproduced，orbythosewhodonotreproduceanothervalue。Whenwesaythatrevenueissaved，andaddedtocapital，whatwemeanis，thattheportionofrevenue，sosaidtobeaddedtothecapital，isconsumedbyproductiveinsteadofunproductivelabourers。”Principles，p。
163。
InfactRicardofullyacceptedthetheoryofAdamSmithconcerningtheresolutionofthepriceofcommoditiesintowagesandsurplus-valueorvariablecapitalandsurplus-value。Thepointsofdisputewithhimare1thecomponentpartsofthesurplus-value:heeliminatesground-rentasanessentialelementofit；2Ricardosplitsthepriceofthecommodityintothesecomponentparts。Themagnitudeofvalueis，then，theprius。Thesumofcomponentpartsisassumedasagivenmagnitude，itisthestartingpoint，whileAdamSmithfrequentlyactstothecontrary，againsthisownbetterjudgement，bysubsequentlydeducingthemagnitudeofvalueofthecommoditythroughthesumofthecomponentparts。
RamsaymakesthefollowingremarkagainstRicardo:”……Heseemsalwaystoconsiderthewholeproduceasdividedbetweenwagesandprofits，forgettingthepartnecessaryforreplacingfixedcapital。”AnEssayontheDistributionofWealth，Edinburgh，1836，p。174。ByfixedcapitalRamsaymeansthesamethingthatImeanbyconstantcapital:”Fixedcapitalexistsinaforminwhich，thoughassistingtoraisethefuturecommodity，itdoesnotmaintainlabourers。”Ibid。，p。59。
AdamSmithopposedthenecessaryconclusionofhisresolutionofthevalueofcommodities，andthereforealsoofthevalueofthesocialannualproductintowagesandsurplus-valueandthereforeintomererevenue——
theconclusionthatinthiseventtheentireannualproductmightbeconsumed。
Itisnevertheoriginalthinkersthatdrawtheabsurdconclusions。TheyleavethattotheSaysandMacCullochs。
Say，indeed，settlesthemattereasyenough。Thatwhichisanadvanceofcapitalforone，isorwasarevenueandnetproductforanother。Thedifferencebetweenthegrossandthenetproductispurelysubjective，and”thusthetotalvalueofallproducts，hasbeendistributedinsocietyasrevenue。”Say，Traitè；d’EconomiePolitique，1817，II，p。64。”Thetotalvalueofeveryproductiscomposedoftheprofitsofthelandowners，thecapitalists，andthosewhoplyindustrialtrades”[wagesfigurehereasprofitsdesindustrieux！]”whohavecontributedtowardsitsproduction。Thismakestherevenueofsocietyequaltothegrossvalueproduced，notequaltothenetproductsofthesoil，aswasbelievedbythesectoftheeconomists”[thephysiocrats]。P。63。
Amongothers，ProudhonhasappropriatedthisdiscoveryofSay。
Storch，wholikewiseacceptsAdamSmith’sdoctrineinprinciple，findshoweverthatSay’spracticalapplicationofitdoesnotholdwater。”Ifitisadmittedthattherevenueofanationisequaltoitsgrossproduct，i。e。，thatnocapital”[itshouldsay:noconstantcapital]”istobededucted，thenitmustalsobeadmittedthatthisnationmayconsumeunproductivelytheentirevalueofitsannualproductwithouttheleastdetrimenttoitsfuturerevenue……Theproductswhichrepresentthe”[constant]”capitalofanationarenotconsumable。”Storch，Considerationssurlanaturedurevenunational，Paris，1824，pp。147，150。
However，StorchforgottotellushowtheexistenceofthisconstantportionofcapitalharmoniseswiththeSmithiananalysisofpricesacceptedbyhim，accordingtowhichthevalueofcommoditiescontainsonlywagesandsurplus-value，butnopartofanyconstantcapital。HerealisesonlythroughSaythatthisanalysisofpricesleadstoabsurdresults，andhisownlastwordonthesubjectis”thatitisimpossibletoresolvethenecessarypriceintoitssimplestelements。”Coursd’EconomiePolitique，Petersburg，1815，II，p。141。
Sismondi，whooccupieshimselfparticularlywiththerelationofcapitaltorevenue，andinactualfactmakesthepeculiarformulationofthisrelationthedifferentiaspecificaofhisNouveauxPrincipes，didnotsayonescientificword，didnotcontributeoneiotatotheclarificationoftheproblem。
Barton，Ramsay，andCherbuliezattempttogobeyondtheformulationofAdamSmith。Theyfounderbecausetheyposetheproblemone-sidedlyfromtheoutsetbyfailingtomakeclearthedistinctionbetweenconstantandvariablecapital-valueandbetweenfixedandcirculatingcapital。
JohnStuartMilllikewisereproduces，withhisusualpomposity，thedoctrinehandeddownbyAdamSmithtohisfollowers。Asaresult，theSmithianconfusionofthoughtpersiststothishourandhisdogmaisoneoftheorthodoxarticlesoffaithofPoliticalEconomy。
NOTES
[35]BeginningofManuscriptVIII——F。
E。
[36]Kapital，BandI，2。Ausgabe，S。
612，Note32。[Eng。ed。，Moscow，1954，p。591，Note1。]
[37]Somephysiocratshadpavedthewayforhimevenhere，especiallyTurgot。ThelatterusesthetermcapitalforavancesmorefrequentlythanQuesnayandtheotherphysiocratsandidentifiesstillmoretheavances，orcapitaux，ofthemanufacturerswiththoseofthefarmers。Forinstance:”Likethesetheentrepreneurs-manufacturers，theylesfermiers，i。e。，thecapitalistfarmersmustreceiveinadditiontoreturningcapitals，etc。”Turgot，Oeuvres，Daireedition，Paris，1844，Vol。I，p。40。
[38]Inorderthatthereadermaynotmisconstruethemeaningofthephrase”thepriceofthefargreaterpartofcommodities，”
thefollowingshowshowAdamSmithhimselfexplainsthisterm。Forinstance，norententersintothepriceofseafish，onlywagesandprofit，onlywagesenterintothepriceofScotchpebbles。Hesays:”InsomepartsofScotlandafewpoorpeoplemakeatradeofgathering，alongthesea-shore，thoselittlevariegatedstonescommonlyknownbythenameofScotchpebbles。
Thepricewhichispaidtothembythestone-cutterisaltogetherthewagesoftheirlabour；neitherrentnorprofitmakesanypartofit。”
[39]Ireproducethissentenceverbatimfromthemanuscript，althoughitseemstocontradict，initspresentcontext，bothwhatprecedesandimmediatelyfollow。ThisapparentcontradictionisresolvedfurtherdowninNo。4:CapitalandRevenueinAdamSmith——F。E。
[40]WeignorethefactthatAdamSmithwashereparticularlyunfortunateinthechoiceofhisexample。Thevalueofthecornresolvesitselfintowages，profit，andrentonlybecausethefoodconsumedbythelabouringcattleisdepictedaswagesofthelabouringcattle，andthelabouringcattleaswage-labourers，sothatthewage-laboureronhispartisalsodepictedaslabouringcattle。AddedfromtheManuscriptII——F。E。
[41]Fromheretotheendofthechapter，asupplementfromManuscriptII——F。E。