M。ProudhonhasthemisfortuneofbeingpeculiarlymisunderstoodinEurope。InFrance，hehastherighttobeabadeconomist，becauseheisreputedtobeagoodGermanphilosopher。InGermany，hehastherighttobeabadphilosopher，becauseheisreputedtobeoneoftheablestFrencheconomists。BeingbothGermanandeconomistatthesametime，wedesiretoprotestagainstthisdoubleerror。
　　ThereaderwillunderstandthatinthisthanklesstaskwehaveoftenhadtoabandonourcriticismofM。ProudhoninordertocriticizeGermanphilosophy，andatthesametimetogivesomeobservationsonpoliticaleconomy。
　　KarlMarxBrussels，June15，1847
　　M。Proudhon’sworkisnotjustatreatiseonpoliticaleconomy，anordinarybook;itisabible。"mysteries"，"SecretsWrestedfromtheBosomofGod"，"Revelations"——itlacksnothing。Butasprophetsarediscussednowadaysmoreconscientiouslythanprofanewriters，thereadermustresignhimselftogoingwithusthroughthearidandgloomyeruditionsof"Genesis"，inordertoascendlater，withM。Proudhon，intotheetherealandfertilerealmofsuper—socialism。（SeeProudhon，PhilosophyofPoverty，Prologue，p。III，line20。）
　　Chapter1
　　ASCIENTIFICDISCOVERY
　　1。
　　THEANTITHESISOFUSEVALUEANDEXCHANGEVALUE
　　"Thecapacityforallproducts，whethernaturalorindustrial，tocontributetoman’ssubsistenceisspecificallytermedusevalue;theircapacitytobegiveninexchangeforoneanother，exchangevalue……Howdoesusevaluebecomeexchangevalue？……Thegenesisoftheideaof（exchange）valuehasnotbeennotedbyeconomistswithsufficientcare。Itisnecessary，therefore，forustodwelluponit。SinceaverylargenumberofthethingsIneedoccurinnatureonlyinmoderatequantities，orevennotatall，IamforcedtoassistintheproductionofwhatIlack。AndasIcannotsetmyhandtosomanythings，Ishallproposetoothermen，mycollaboratorsinvariousfunctions，tocedetomeapartoftheirproductsinexchangeformine。"
　　（Proudhon，Vol。I，Chap。II）
　　M。Proudhonundertakestoexplaintousfirstofallthedoublenatureofvalue，the"distinctioninvalue"，theprocessbywhichusevalueistransformedintoexchangevalue。ItisnecessaryforustodwellwithM。Proudhonuponthisactoftransubstantiation。Thefollowingishowthisactisaccomplished，accordingtoourauthor。
　　Averylargenumberofproductsarenottobefoundinnature，theyareproductsofindustry。Ifman’sneedsgobeyondnature’sspontaneousproduction，heisforcedtohaverecoursetoindustrialproduction。WhatisthisindustryinM。Proudhon’sview？Whatisitsorigin？Asingleindividual，feelingtheneedforaverygreatnumberofthings，"cannotsethishandtosomanythings"。Somanythingstoproducepresupposeatoncemorethanoneman’shandhelpingtoproducethem。Now，themomentyoupostulatemorethanonehandhelpinginproduction，youatoncepresupposeawholeproductionbasedonthedivisionoflabor。Thusneed，asM。Proudhonpresupposesit，itselfpresupposesthewholedivisionoflabor。Inpresupposingthedivisionoflabor，yougetexchange，and，consequently，exchangevalue。Onemightaswellhavepresupposedexchangevaluefromtheverybeginning。
　　ButM。Proudhonpreferstogotheroundaboutway。Letusfollowhiminallhisdetours，whichalwaysbringhimbacktohisstartingpoint。
　　Inordertoemergefromtheconditioninwhicheveryoneproducesinisolationandtoarriveatexchange，"Iturntomycollaboratorsinvariousfunctions，"saysM。Proudhon。I，myself，then，havecollaborators，allwithdifferentfunction。Andyet，forallthat，Iandalltheothers，alwaysaccordingtoM。Proudhon’ssupposition，havegotnofartherthanthesolitaryandhardlysocialpositionoftheRobinsons。Thecollaboratorsandthevariousfunctions，thedivisionoflaborandtheexchangeitimplies，arealreadyathand。
　　Tosumup：Ihavecertainneedswhicharefoundedonthedivisionoflaborandonexchange。Inpresupposingtheseneeds，M。Proudhonhasthuspresupposedexchange，exchangevalue，theverythingofwhichhepurposesto"notethegenesiswithmorecarethanothereconomists"。
　　M。Proudhonmightjustaswellhaveinvertedtheorderofthings，withoutinanywayaffectingtheaccuracyofhisconclusions。Toexplainexchangevalue，wemusthaveexchange。Toexplainexchange，wemusthavethedivisionoflabor。Toexplainthedivisionoflabor，wemusthaveneedswhichrendernecessarythedivisionoflabor。Toexplaintheseneeds，wemust"presuppose"them，whichisnottodenythem——contrarytothefirstaxiominM。Proudhon’sprologue："TopresupposeGodistodenyHim。"（Prologue，p。1）
　　HowdoesM。Proudhon，whoassumesthedivisionoflaborastheknown，managetoexplainexchangevalue，whichforhimisalwaystheunknown？
　　"Aman"setsoutto"proposetoothermen，hiscollaboratorsinvariousfunctions"，thattheyestablishexchange，andmakeadistinctionbetweenordinaryvalueandexchangevalue。Inacceptingthisproposeddistinction，thecollaboratorshaveleftM。Proudhonnoother"care"thanthatofrecordingthefact，ormarking，of"noting"inhistreatiseonpoliticaleconomy"thegenesisoftheideaofvalue"。Buthehasstilltoexplaintousthe"genesis"ofthisproposal，totellusfinallyhowthissingleindividual，thisRobinson[Crusoe]，suddenlyhadtheideaofmaking"tohiscollaborators"
　　aproposalofthetypeknownandhowthesecollaboratorsaccepteditwithouttheslightestprotest。
　　M。Proudhondoesnotenterintothesegenealogicaldetails。Hemerelyplacesasortofhistoricalstampuponthefactofexchange，bypresentingitintheformofamotion，madebyathirdparty，thatexchangebeestablished。
　　Thatisasampleofthe"historicalanddescriptivemethod"ofM。Proudhon，whoprofessesasuperbdisdainforthe"historicalanddescriptivemethods"oftheAdamSmithsandRicardos。
　　Exchangehasahistoryofitsown。Ithaspassedthroughdifferentphases。Therewasatime，asintheMiddleAges，whenonlythesuperfluous，theexcessofproductionoverconsumption，wasexchanged。
　　Therewasagainatime，whennotonlythesuperfluous，butallproducts，allindustrialexistence，hadpassedintocommerce，whenthewholeofproductiondependedonexchange。Howarewetoexplainthissecondphaseofexchange——marketablevalueatitssecondpower？
　　M。Proudhonwouldhaveareplyready—made：Assumethatamanhas"proposedtoothermen，hiscollaboratorsinvariousfunctions"，toraisemarketablevaluetoitssecondpower。
　　Finally，therecameatimewheneverythingthatmenhadconsideredasinalienablebecameanobjectofexchange，oftrafficandcouldbealienated。
　　Thisisthetimewhentheverythingswhichtillthenhadbeencommunicated，butneverexchanged;given，butneversold;acquired，butneverbought——virtue，love，conviction，knowledge，conscience，etc。——wheneverything，inshort，passedintocommerce。Itisthetimeofgeneralcorruption，ofuniversalvenality，or，tospeakintermsofpoliticaleconomy，thetimewheneverything，moralorphysical，havingbecomeamarketablevalue，isbroughttothemarkettobeassessedatitstruestvalue。
　　How，again，canweexplainthisnewandlastphaseofexchange——marketablevalueatitsthirdpower？
　　M。Proudhonwouldhaveareplyready—made：Assumethatapersonhas"proposedtootherpersons，hiscollaboratorsinvariousfunctions"，tomakeamarketablevalueoutofvirtue，love，etc。，toraiseexchangevaluetoitsthirdandlastpower。
　　WeseethatM。Proudhon’s"historicalanddescriptivemethod"
　　isapplicabletoeverything，itanswerseverything，explainseverything。
　　Ifitisaquestionaboveallofexplaininghistorically"thegenesisofaneconomicidea"，itpostulatesamanwhoproposestoothermen，"hiscollaboratorsinvariousfunctions"，thattheyperformthisactofgenesisandthatistheendofit。
　　Weshallhereafteracceptthe"genesis"ofexchangevalueasanaccomplishedact;itnowremainsonlytoexpoundtherelationbetweenexchangevalueandusevalue。LetushearwhatM。Proudhonhastosay：
　　"Economistshaveverywellbroughtoutthedoublecharacterofvalue，butwhytheyhavenotpointedoutwiththesameprecisionisitscontradictorynature;thereiswhereourcriticismbegins……
　　"Itisasmallthingtohavedrawnattentiontothissurprisingcontrastbetweenusevalueandexchangevalue，inwhicheconomistshavebeenwonttoseeonlysomethingverysimple：wemustshowthatthisallegedsimplicityconcealsaprofoundmysteryintowhichitisourdutytopenetrate……
　　"Intechnicalterms，usevalueandexchangevaluestandininverseratiotoeachother。"
　　IfwehavethoroughlygraspedM。Proudhon’sthoughtthefollowingarethefourpointswhichhesetsouttoestablish：
　　Usevalueandexchangevalueforma"surprisingcontrast"，theyareinoppositiontoeachother。
　　Usevalueandexchangevalueareininverseratio，incontradiction，toeachother。
　　Economistshaveneitherobservednotrecognizedeithertheoppositionorthecontradiction。
　　M。Proudhon’scriticismbeginsattheend。
　　We，too，shallbeginattheend，and，inordertocleartheeconomistsfromM。Proudhon’saccusations，weshalllettwosufficientlywell—knowneconomistsspeakforthemselves。
　　SISMONDI：
　　"Itistheoppositionbetweenusevalueandexchangevaluetowhichcommercehasreducedeverything，etc。"
　　（Etudes，VolumeII，p。162，Brusselsedition）
　　LAUDERDALE：
　　"Inproportionastherichesofindividualsareincreasedbyanaugmentationofthevalueofanycommodity，thewealthofthesocietyisgenerallydiminished;andinproportionasthemassofindividualrichesisdiminished，bythediminutionofthevalueofanycommodity，itsopulenceisgenerallyincreased。"
　　（Recherchessurlanatureetl’originedelarichessepublique;translatedbyLangentiedeLavaisse。Paris1808[p。33]）[1]
　　Sismondifoundedontheoppositionbetweenusevalueandexchangevaluehisprincipaldoctrine，accordingtowhichdiminutioninrevenueisproportionaltotheincreaseinproduction。
　　Lauderdalefoundedhissystemontheinverseratioofthetwokindsofvalue，andhisdoctrinewasindeedsopopularinRicardo’stimethatthelattercouldspeakofitasofsomethinggenerallyknown。
　　"Itisthroughconfoundingtheideasofvalueandwealth，orrichesthatithasbeenasserted，thatbydiminishingthequantityofcommodities，thatistosay，ofthenecessaries，conveniences，andenjoymentsofhumanlife，richesmaybeincreased。"
　　（Ricardo，Principlesdela’economiepolitiquetranslatedbyConstancio，annotationsbyJ。B。Say。
　　Paris1835;VolumeII，chapterSurlavaleuretlesrichesses）
　　WehavejustseenthattheeconomistsbeforeM。Proudhonhad"drawnattention"
　　totheprofoundmysteryofoppositionandcontradiction。LetusnowseehowM。Proudhonexplainsthismysteryaftertheeconomists。
　　Theexchangevalueofaproductfallsasthesupplyincreases，thedemandremainingthesame;inotherwords，themoreabundantaproductisrelativelytothedemand，thelowerisitsexchangevalue，orprice。
　　Viceversa：Theweakerthesupplyrelativelytothedemand，thehigherrisestheexchangevalueorthepriceoftheproductsupplied：inotherwords，thegreaterthescarcityintheproductssupplied，relativelytothedemand，thehighertheprices。Theexchangevalueofaproductdependsuponitsabundanceoritsscarcity;butalwaysinrelationtothedemand。
　　Takeaproductthatismorethanscarce，uniqueofitskindifyouwill：
　　thisuniqueproductwillbemorethanabundant，itwillbesuperfluous，ifthereisnodemandforit。Ontheotherhand，takeaproductmultipliedintomillions，itwillalwaysbescarceifitdoesnotsatisfythedemand，thatis，ifthereistoogreatademandforit。
　　Thesearewhatweshouldalmostcalltruisms，yetwehavehadtorepeatthemhereinordertorenderM。Proudhon’smysteriescomprehensible。
　　"Sothat，followinguptheprincipletoitsultimateconsequences，onewouldcometotheconclusion，themostlogicalintheworld，thatthethingswhoseuseisindispensableandwhosequantityisunlimitedshouldbehadfornothing，andthosewhoseutilityisnilandwhosescarcityisextremeshouldbeofincalculableworth。Tocapthedifficulty，theseextremesareimpossibleinpractice：ontheonehand，nohumanproductcouldeverbeunlimitedinmagnitude;ontheother，eventhescarcestthingsmustperforcebeusefultoacertaindegree，otherwisetheywouldbequitevalueless。
　　Usevalueandexchangevaluearethusinexorablyboundupwitheachother，althoughbytheirnaturetheycontinuallytendtobemutuallyexclusive。"
　　（VolumeI，p。39）
　　WhatcapsM。Proudhon’sdifficulty？Thathehassimplyforgottenaboutdemand，andthatathingcanbescarceorabundantonlyinsofarasitisindemand。Themomentheleavesoutdemand，heidentifiesexchangevaluewithscarcityandusevaluewithabundance。Inreality，insayingthatthings"whoseutilityisnilandscarcityextremeareofincalculableworth"，heissimplydeclaringthatexchangevalueismerelyscarcity。"Scarcityextremeandutilitynil"meanspurescarcity。"Incalculableworth"isthemaximumofexchangevalue，itispureexchangevalue。Heequatesthesetwoterms。Thereforeexchangevalueandscarcityareequivalentterms。
　　Inarrivingatthesealleged"extremeconsequences"，M。Proudhonhasinfactcarriedtotheextreme，notthethings，butthetermswhichexpressthem，and，insodoing，heshowsproficiencyinrhetoricratherthaninlogic。Hemerelyrediscovershisfirsthypothesesinalltheirnakedness，whenhethinkhehasdiscoverednewconsequences。Thankstothesameprocedurehesucceedsinidentifyingusevaluewithpureabundance。
　　Afterhavingequatedexchangevalueandscarcity，usevalueandabundance，M。Proudhonisquiteastonishednottofindusevalueinscarcityandexchangevalue，norexchangevalueinabundanceandusevalue;andseeingthattheseextremesareimpossibleinpractice，hecandonothingbutbelieveinmystery。Incalculableworthexistsforhim，becausebuyersdonotexist，andhewillneverfindanybuyers，solongasheleavesoutdemand。
　　Ontheotherhand，M。Proudhon’sabundanceseemstobesomethingspontaneous。Hecompletelyforgetsthattherearepeoplewhoproduceit，andthatitistotheirinterestnevertolosesightofdemand。Otherwise，howcouldM。Proudhonhavesaidthatthingswhichareveryusefulmusthaveaverylowprice，orevencostnothing？Onthecontrary，heshouldhaveconcludedthatabundance，theproductionofveryusefulthings，shouldberestrictediftheirprice，theirexchangevalueistoberaised。
　　Theoldvine—growersofFranceinpetitioningforalawtoforbidtheplantingofnewvines;theDutchinburningAsiaticspices，inuprootingclovetreesintheMoluccas，weresimplytryingtoreduceabundanceinordertoraiseexchangevalue。DuringthewholeoftheMiddleAgesthissameprinciplewasactedupon，inlimitingbylawsthenumberofjourneymenasinglemastercouldemployandthenumberofimplementshecoulduse。
　　（SeeAnderson，HistoryofCommerce。）[Thefullreference：A。Anderson，AnHistoricalandChronologicalDeductionoftheOriginofCommercefromtheEarliestAccountstothePresentTime。FirsteditionappearedinLondonin1764。p。33]
　　Afterhavingrepresentedabundanceasusevalueandscarcityasexchangevalue——nothingindeediseasierthantoprovethatabundanceandscarcityareininverseratio——M。Proudhonidentifiesusevaluewithsupplyandexchangevaluewithdemand。Tomaketheantithesisevenmoreclear—cut，hesubstitutesanewterm，putting"estimationvalue"
　　insteadofexchangevalue。Thebattlehasnowshifteditsground，andwehaveononesideutility（usevalue，supply），ontheotherside，estimation（exchangevalue，demand）。
　　Whoistoreconcilethesetwocontradictoryforces？Whatistobedonetobringthemintoharmonywitheachother？Isitpossibletofindinthemevenasinglepointofcomparison？
　　"Certainly，"criesM。Proudhon，"thereisone——freewill。Thepriceresultingfromthisbattlebetweensupplyanddemand，betweenutilityandestimationwillnotbetheexpressionofeternaljustice。"
　　M。Proudhongoesontodevelopthisantithesis。
　　"Inmycapacityasafreebuyer，Iamjudgeofmyneeds，judgeofthedesirabilityofanobject，judgeofthepriceIamwillingtopayforit。
　　Ontheotherhand，inyourcapacityasafreeproducer，youaremasterofthemeansofexecution，andinconsequence，youhavethepowertoreduceyourexpenses。"
　　（VolumeI，p。41）
　　Andasdemand，orexchangevalue，isidenticalwithestimation，M。Proudhonisledtosay：
　　"Itisprovedthatitisman’sfreewillthatgivesrisetotheoppositionbetweenusevalueandexchangevalue。Howcanthisoppositionberemoved，solongasfreewillexists？Andhowcanthelatterbesacrificedwithoutsacrificingmankind？"
　　（VolumeI，p。41）
　　Thusthereisnopossiblewayout。Thereisastrugglebetweentwoasitwereincommensurablepowers，betweenutilityandestimation，betweenthefreebuyerandthefreeproducer。
　　Letuslookatthingsalittlemoreclosely。
　　Supplydoesnotrepresentexclusivelyutility，demanddoesnotrepresentexclusivelyestimation。Doesnotthedemanderalsosupplyacertainproductorthetokenrepresentingallproducts——viz。，money;andassupplier，doeshenotrepresent，accordingtoM。Proudhon，utilityorusevalue？
　　Again，doesnotthesupplieralsodemandacertainproductorthetokenrepresentingallproduct——viz。，money？Anddoeshenotthusbecometherepresentativeofestimation，ofestimationvalueorofexchangevalue？
　　Demandisatthesametimeasupply，supplyisatthesametimeademand。ThusM。Proudhon’santithesis，insimplyidentifyingsupplyanddemand，theonewithutility，theotherwithestimation，isbasedonlyonafutileabstraction。
　　WhatM。Proudhoncallsusevalueiscalledestimationvaluebyothereconomists，andwithjustasmuchright。WeshallquoteonlyStorch（Coursd’economiepolitique，Paris1823，pp。48and49）。
　　Accordingtohim，needsarethethingsforwhichwefeeltheneed;valuesarethingstowhichweattributevalue。Mostthingshavevalueonlybecausetheysatisfyneedsengenderedbyestimation。Theestimationofourneedsmaychange;thereforetheutilityofthings，whichexpressesonlytherelationofthesethingstoourneeds，mayalsochange。
　　Naturalneedsthemselvesarecontinuallychanging。Indeed，whatcouldbemorevariedthantheobjectswhichformthestaplefoodofdifferentpeoples！
　　Theconflictdoesnottakeplacebetweenutilityandestimation;
　　ittakesplacebetweenthemarketablevaluedemandedbythesupplierandthemarketablevaluesuppliedbythedemander。Theexchangevalueoftheproductiseachtimetheresultantofthesecontradictoryappreciations。
　　Infinalanalysis，supplyanddemandbringtogetherproductionandconsumption，butproductionandconsumptionbasedonindividualexchanges。
　　Theproductsuppliedisnotusefulinitself。Itistheconsumerwhodeterminesitsutility。Andevenwhenitsqualityofbeingusefulisadmitted，itdoesnotexclusivelyrepresentutility。Inthecourseofproduction，ithasbeenexchangedforallthecostsofproduction，suchasrawmaterials，wagesofworkers，etc。，allofwhicharemarketablevalues。Theproduct，therefore，represents，intheeyesoftheproducer，asumtotalofmarketablevalues。Whathesuppliesisnotonlyausefulobject，butalsoandaboveallamarketablevalue。
　　Astodemand，itwillonlybeeffectiveonconditionthatithasmeansofexchangeatitsdisposal。Thesemeansarethemselvesproducts，marketablevalue。
　　Insupplyanddemand，then，wefindontheonehandaproductwhichhascostmarketablevalues，andtheneedtosell;ontheother，meanswhichhavecostmarketablevalues，andthedesiretobuy。
　　M。Proudhonopposesthefreebuyertothefreeproducer。Totheoneandtotheotherheattributespurelymetaphysicalqualities。Itisthisthatmakeshimsay：
　　"Itisprovedthatitisman’sfreewillthatgivesrisetotheoppositionbetweenusevalueandexchangevalue。"
　　[I41]
　　Theproducer，themomentheproducesinasocietyfoundedonthedivisionoflaborandonexchange（andthatisM。Proudhon’shypothesis），isforcedtosell。M。Proudhonmakestheproducermasterofthemeansofproduction;
　　buthewillagreewithusthathismeansofproductiondonotdependonfreewill。Moreover，manyofthesemeansofproductionareproductswhichhegetsfromtheoutside，andinmodernproductionheisnotevenfreetoproducetheamounthewants。Theactualdegreeofdevelopmentoftheproductiveforcescompelshimtoproduceonsuchorsuchascale。
　　Theconsumerisnofreerthantheproducer。Hisjudgmentdependsonhismeansandhisneeds。Bothofthesearedeterminedbyhissocialposition，whichitselfdependsonthewholesocialorganization。True，theworkerwhobuyspotatoesandthekeptwomanwhobuyslacebothfollowtheirrespectivejudgments。Butthedifferenceintheirjudgementsisexplainedbythedifferenceinthepositionswhichtheyoccupyintheworld，andwhichthemselvesaretheproductofsocialorganization。
　　Istheentiresystemofneedsonestimationoronthewholeorganizationofproduction？Mostoften，needsarisedirectlyfromproductionorfromastateofaffairsbasedonproduction。Thus，tochooseanotherexample，doesnottheneedforlawyerssupposeagivencivillawwhichisbuttheexpressionofacertaindevelopmentofproperty，thatistosay，ofproduction？
　　ItisnotenoughforM。Proudhontohaveeliminatedtheelementsjustmentionedfromtherelationofsupplyanddemand。Hecarriesabstractiontothefurthestlimitswhenhefusesallproducersintoonesingleproducer，allconsumersintoonesingleconsumer，andsetsupastrugglebetweenthesetwochimericalpersonages。Butintherealworld，thingshappenotherwise。
　　Thecompetitionamongthesuppliersandthecompetitionamongthedemandersformanecessarypartofthestrugglebetweenbuyersandsellers，ofwhichmarketablevalueistheresult。
　　Afterhavingeliminatedcompetitionandthecostofproduction，M。Proudhoncanathiseasereducetheformulaofsupplyanddemandtoanabsurdity。
　　"Supplyanddemand，"hesays，"aremerelytwoceremonialformsthatservetobringusevalueandexchangevaluefacetoface，andtoleadtotheirreconciliation。Theyarethetwoelectricpoleswhich，whenconnected，mustproducethephenomenonofaffinitycalledexchange。"
　　（VolumeI，pp。49and50）
　　Onemightaswellsaythatexchangeismerelya"ceremonialform"forintroducingtheconsumertotheobjectofconsumption。Onemightaswellsaythatalleconomicrelationsare"ceremonialforms"servingimmediateconsumptionasgo—betweens。Supplyanddemandareneithermorenorlessrelationsofagivenproductionthanareindividualexchanges。
　　What，then，doesallM。Proudhon’sdialecticconsistin？Inthesubstititionforusevalueandexchangevalue，forsupplyanddemand，ofabstractandcontradictorynotionslikescarcityandabundance，utilityandestimation，oneproducerandoneconsumer，bothofthemknightsoffreewill。
　　Andwhatwasheaimingat？
　　Atarrangingforhimselfameansofintroducinglaterononeoftheelementshehadsetaside，thecostofproduction，asthesynthesisofusevalueandexchangevalue。Anditisthusthatinhiseyesthecostofproductionconstitutessyntheticvalueorconstitutedvalue。
　　2。
　　CONSTITUTEDVALUEORSYNTHETICVALUE
　　"Value（marketablevalue）isthecorner—stoneoftheeconomicstructure。""Constituted"valueisthecorner—stoneofthesystemofeconomiccontradictions。
　　Whatthenisthis"constitutedvalue’whichisallM。Proudhonhasdiscoveredinpoliticaleconomy？
　　Onceutilityisadmitted，laboristhesourceofallvalue。Themeasureoflaboristime。Therelativevalueofproductsisdeterminedbythelabortimerequiredfortheirproduction。Priceisthemonetaryexpressionoftherelativevalueofaproduct。Finally，thetheconstitutedvalueofaproductispurelyandsimplythevaluewhichisconstitutedbythelabortimeincorporatedinit。
　　JustasAdamSmithdiscoveredthedivisionoflabor，sohe，M。
　　Proudhon，claimstohavediscovered"constitutedvalue"。Thisisnotexactly"somethingunheardof"，butthenitmustbeadmittedthatthereisnothingunheardofinnydiscoveryofeconomicscience。M。Proudhon，whoappreciatestothefulltheimportanceofhisowninvention，seeksneverthelesstotonedownthemerittherefore"inordertoreassurethereadertoashisclaimstooriginality，andtowinovermindswhosetimidityrendersthemlittlefavorabletonewideas"。Butinapportioningthecontributionmadebyeachofhispredecessorstotheunderstandingofvalue，heisforcedtoconfessopenlythatthelargestportion，thelion’sshare，ofthemeritfallstohimself。
　　"ThesyntheticideaofvaluehadbeenvaguelyperceivedbyAdamSmith……
　　ButwithAdamSmiththeideaofvaluewasentirelyintuitive。Now，societydoesnotchangeitshabitsmerelyonthestrengthofintuitions：itsdecisionsaremadeonlyontheauthorityoffacts。Theantinomyhadtobestatedmorepalpablyandmoreclearly：J。B。Saywasitschiefinterpreter。"
　　[I66]
　　Here，inanutshell，isthehistoryofthediscoveryofsyntheticvalue：
　　AdamSmith——vagueintuition;J。B。Say——antinomy;M。Proudhon——constitutingand"constituted"truth。Andlettherebenomistakeaboutit：alltheothereconomists，fromSaytoProudhon，havemerelybeentrudgingalongintherutofantimony。
　　"Itisincrediblethatforthelast40yearssomanymenofsenseshouldhavefumedandfrettedatsuchasimpleidea。Butno，valuesarecomparedwithouttherebeinganypointofcomparisonbetweenthemandwithnounitofmeasurements;this，ratherthanembracetherevolutionarytheoryofequality，iswhattheeconomistsofthe19thcenturyareresolvedtoupholdagainstallcomers。Whatwillposteritysayaboutit？"
　　（Vol。I，p。68）
　　Posterity，soabruptlyinvoked，willbeginbygettingmuddledoverthechronology。Itisboundtoaskitself：arenotRicardoandhisschooleconomistsofthe19thcentury？Ricardo’ssystem，puttingasaprinciplethat"therelativevalueofcommoditiescorrespondsexclusivelytotheirproduction"，datesfrom1817。RicardoistheheadofawholeschooldominantinEnglandsincetheRestoration。[TheperiodinquestionbeginsaftertheterminationoftheNapoleonicwarsandrestorationoftheBourbondynastyinFrancein1815。]TheRicardiandoctrinesummarizesseverely，remorselessly，thewholeoftheEnglishbourgeoisie。"Whatwillposteritysayaboutit？"ItwillnotsaythatM。ProudhondidnotknowRicardo，forhetalksabouthim，hetalksatlengthabouthim，hekeepscomingbacktohim，andconcludesbycallinghissystem"trash"。Ifeverposteritydoesinterfere，itwillsayperhapsthatM。Proudhon，afraidofoffendinghisreaders’Anglophobia，preferredtomakehimselftheresponsibleeditorofRicardo’sideas。Inanycase，itwillthinkitverynaivethatM。Proudhonshouldgiveasa"revolutionarytheoryofthefuture"whatRicardoexpoundedscientificallyasthetheoryofpresent—daysociety，ofbourgeoissociety，andthatheshouldthustakeforthesolutionoftheantinomybetweenutilityandexchangevaluewhatRicardoandhisschoolpresentedlongbeforehimasthescientificformulaofonesinglesideofthisantinomy，thatofexchangevalue。Butletusleaveposterityaloneonceandforall，andconfrontM。ProudhonwithhispredecessorRicardo。Herearesomeextractsfromthisauthorwhichsummarizehisdoctrineonvalue：
　　"Utilitytheninnotthemeasureofexchangeablevalue，althoughitisabsolutelyessentialtoit。"
　　（Vol。I，p。3，Principlesdel’economiepolitique，etc。，translatedfromtheEnglishbyF。S。Constancio，Paris1835）
　　"Possessingutility，commoditiesderivetheirexchangeablevaluefromtwosources：fromtheirscarcity，andfromthequantityoflaborrequiredtoobtaintheM。Therearesomecommodities，thevalueofwhichisdeterminedbytheirscarcityalone。Nolaborcanincreasethequantityofsuchgoods，andthereforetheirvaluecannotbeloweredbyanincreasedsupply。Somerarestatuesandpictures，scarcebooks……areallofthisdescription。
　　Theirvalue……varieswiththevaryingwealthandinclinationsofthosewhoaredesiroustopossessthem。"
　　（Vol。I，pp。4and5，l。c。）
　　"Thesecommodities，however，formaverysmallpartofthemassofcommoditiesdailyexchangedinthemarket。Byfarthegreatestpartofthesegoodswhicharetheobjectsofdesire，areprocuredbylabor;andtheymaybemultiplied，notinonecountryalone，butinmany，almostwithoutanyassignablelimit，ifwearedisposedtobestowthelabornecessarytoobtainthem。"
　　（Vol。I，pp。5，l。c。）
　　"Inspeakingthenofcommodities，oftheirexchangeablevalue，andofthelawswhichregulatetheirrelativeprices，wemeanalwayssuchcommoditiesonlyascanbeincreasedinquantitybytheexertionofhumanindustry，andontheproductionofwhichcompetitionoperateswithoutrestraint。"
　　（Vol。I，pp。5）
　　RicardoquotesAdamSmith，who，accordingtohim，"soaccuratelydefinedtheoriginalsourceofexchangeablevalue"（AdamSmith，WealthofNations，BookI，Chap5[Fullreference：AnInquiryintotheNatureandCausesoftheWealthofNations，firsteditionappearinginLondon，1776]），andheadds：
　　"Thatthis（i。e。，labortime）isreallythefoundationoftheexchangeablevalueofallthings，exceptingthosewhichcannotbeincreasedbyhumanindustry，isadoctrineoftheutmostimportanceinpoliticaleconomy;
　　forfromnosourcedosomanyerrors，andsomuchdifferenceofopinioninthatscienceproceed，asfromthevagueideaswhichareattachedtothewordvalue。"
　　（Vol。I，p。8）
　　"Ifthequantityoflaborrealizedincommoditiesregulatetheirexchangeablevalue，everyincreaseofthequantityoflabormustaugmentthevalueofthatcommodityonwhichitisexercised，aseverydiminutionmustlowerit。"
　　（Vol。I，p。8）
　　RicardogoesontoreproachSmith：
　　Withhaving"himselferectedanotherstandardmeasureofvalue"thanlabor。
　　"Sometimeshespeaksofcorn，atothertimesoflabor，asastandardmeasure;
　　notthequantityoflaborbestowedontheproductionofanyobject，butthequantityitcancommandinthemarket。"（Vol。I，pp。9and10）
　　Withhaving"admittedtheprinciplewithoutqualificationandatthesametimerestricteditsapplicationtothatearlyandrudestateofsociety，whichprecedesboththeaccumulationofstockandtheappropriationofland"。（Vol。I，p。21）
　　Ricardosetsouttoprovethattheownershipofland，thatis，groundrent，cannotchangetherelativevalueofcommoditiesandthattheaccumulationofcapitalhasonlyapassingandfluctuationeffectontherelativevaluesdeterminedbythecomparativequantityoflaborexpendedontheirproduction。
　　Insupportofthisthesis，hegiveshisfamoustheoryofgroundrent，analysescapital，andultimatelyfindsnothinginitbutaccumulatedlabor。Thenhedevelopsawholetheoryofwagesandprofits，andprovesthatwagesandprofitsriseandfallininverseratiotoeachother，withoutaffectingtherelativevalueoftheproduct。Hedoesnotneglecttheinfluencethattheaccumulationofcapitalanditsdifferentaspects（fixedcapitalandcirculatingcapital），asalsotherateofwages，canhaveontheproportionalvalueofproducts。Infact，theyarethechiefproblemswithwhichRicardoisconcerned。
　　"Economyintheuseoflaborneverfailstoreducetherelativevalue[2]ofacommodity，whetherthesavingbeinthelabornecessarytothemanufactureofthecommodityitself，orinthatnecessarytotheformationofthecapital，bytheaidofwhichitisproduced。"
　　（Vol。I，p。28）
　　"Undersuchcircumstancethevalueofthedeer，theproduceofthehunter’sday’slabor，wouldbeexactlyequaltothevalueofthefish，theproduceofthefisherman’sday’slabor。Thecomparativevalueofthefishandthegamewouldbeentirelyregulatedbythequantityoflaborrealizedineach，whatevermightbethequantityofproduction，orhoweverhighorlowgeneralwagesorprofitsmightbe。"
　　（Vol。I，p。28）
　　"Inmakinglaborthefoundationofthevalueofcommoditiesandthecomparativequantityoflaborwhichisnecessarytotheirproduction，therulewhichdeterminestherespectivequantitiesofgoodswhichshallbegiveninexchangeforeachother，wemustnotbesupposedtodenytheaccidentalandtemporarydeviationsoftheactualormarketpriceofcommoditiesfromthis，theirprimaryandnaturalprice。"
　　（Vol。I，p。105，l。c。）
　　"Itisthecostofproductionwhichmustultimatelyregulatethepriceofcommodities，andnot，ashasbeenoftensaid，theproportionbetweensupplyanddemand。"
　　（Vol。II，p。253）
　　LordLauderdalehaddevelopedthevariationsofexchangevalueaccordingtothelawofsupplyanddemand，orofscarcityandabundancerelativelytodemand。Inhisopinionthevalueofathingcanincreasewhenitsquantitydecreasesorwhenthedemandforitincreases;itcandecreaseowingtoanincreaseofitsquantityorowingtothedecreaseindemand。Thusthevalueofathingcanchangethrougheightdifferentcauses，namely，fourcausesthatapplytomoneyortoanyothercommoditywhichservesasameasureofitsvalue。HereisRicardo’srefutation：
　　"Commoditieswhicharemonopolized，eitherbyanindividual，orbyacompany，varyaccordingtothelawwhichLordLaudersdalehaslaiddown：
　　theyfallinproportionasthesellersaugmenttheirquantity，andriseinproportiontotheeagernessofthebuyerstopurchasethem;theirpricehasnonecessaryconnexionwiththeirnaturalvalue;butthepricesofcommodities，whicharesubjecttocompetition，andwhosequantitymaybeincreasedinanymoderatedegree，willultimatelydepend，notonthestateofdemandandsupply，butontheincreasedordiminishedcostoftheirproduction。"
　　（Vol。II，p。259）
　　Weshallleaveittothereadertomakethecomparisonbetweenthissimple，clear，preciselanguageofRicardo’sandM。Proudhon’srhetoricalattemptstoarriveatthedeterminationofrelativevaluebylabortime。
　　Ricardoshowsustherealmovementofbourgeoisproduction，whichconstitutesvalue。M。Proudhon，leavingtherealmovementoutofaccount，"fumesandfrets"inordertoinventnewprocessesandtoachievethereorganizationoftheworldonawould—benewformula，whichformulaisnomorethanthetheoreticalexpressionoftherealmovementwhichexistsandwhichissowelldescribedbyRicardo。Ricardotakeshisstartingpointfrompresent—daysocietytodemonstratetoushowitconstitutesvalue——M。Proudhontakesconstitutedvalueashisstartingpointtoconstructanewsocialworldwiththeaidofthisvalue。Forhim，M。Proudhon，constitutedvaluemustmovearoundandbecomeoncemoretheconstitutingfactorinaworldalreadycompletelyconstitutedaccordingtothismodeofevaluation。Thedeterminationofvaluebylabortime，is，forRicardo，thelawofexchangevalue;forM。Proudhon。itisthesynthesisofusevalueandexchangevalue。Ricardo’stheoryofvaluesisthescientificinterpretationofactualeconomiclife;
　　M。Proudhon’stheoryofvaluesistheutopianinterpretationofRicardo’stheory。Ricardoestablishesthetruthofhisformulabyderivingitfromalleconomicrelations，andbyexplaininginthiswayallphenomena，eventhoselikegroundrent，accumulationofcapitalandtherelationofwagestoprofits，whichatfirstsightseemstocontradictit;itispreciselythatwhichmakeshisdoctrineascientificsystem：M。Proudhon，whohasrediscoveredthisformulaofRicardo’sbymeansofquitearbitraryhypotheses，isforcedthereaftertoseekoutisolatedeconomicfactswhichhetwistsandfalsifiestopassthemoffasexamples，alreadyexistingapplications，beginningofrealizationofhisregeneratingidea。（SeeourS。3。APPLICATION
　　OFCONSTITUTEDVALUE）
　　NowletuspassontotheconclusionsM。Proudhondrawsfromvalueconstituted（bylabortime）。
　　Acertainquantityoflaborisequivalenttotheproductcreatedbythissamequantityoflabor。
　　Eachday’slaborisworthasmuchasanotherday’slabor;thatistosay，ifthequantitiesareequal，oneman’slaborisworthasmuchasanotherman’slabor：thereisnoqualitativedifference。Withthesamequantityofwork，oneman’sproductcanbegiveninexchangeforanotherman’sproduct。
　　Allmenarewageworkersgettingequalpayforanequaltimeofwork。Perfectequalityrulestheexchanges。
　　Aretheseconclusionsthestrict，naturalconsequencesofvalue"constituted"
　　ordeterminedbylabortime？
　　Iftherelativevalueofacommodityisdeterminedbythequantityoflaborrequiredtoproduceit，itfollowsnaturallythattherelativevalueoflabor，orwages，islikewisedeterminedbythequantityoflaborneededtoproducethewages。Wages，thatis，therelativevalueorthepriceoflabor，arethusdeterminedbythelabortimeneededtoproduceallthatisnecessaryforthemaintenanceoftheworker。
　　"Diminishthecostofproductionofhats，andtheirpricewillultimatelyfalltotheirownnewnaturalprice，althoughthedemandshouldbedoubled，trebled，orquadrupled。Diminishthecostofsubsistenceofmen，bydiminishingthenaturalpriceoffoodandclothing，bywhichlifeissustained，andwageswillultimatelyfall，notwithstandingthedemandforlaborersmayverygreatlyincrease。"
　　（Ricardo，Vol。II，p。253）
　　Doubtless，Ricardo’slanguageisascynicalascanbe。Toputthecostofmanufactureofhatsandthecostofmaintenanceofmenonthesameplaneistoturnmenintohats。Butdonotmakeanoutcryatthecynicismofit。Thecynicismisinthefactsandnotinthewordswhichexpressthefacts。FrenchwriterslikeMM。Droz，Blanqui，RossiandotherstakeaninnocentsatisfactioninprovingtheirsuperiorityovertheEnglisheconomists，byseekingtoobservetheetiquetteofa"humanitarian"phraseology;iftheyreproachRicardoandhisschoolfortheircynicallanguage，itisbecauseitannoysthemtoseeeconomicrelationsexposedinalltheircrudity，toseethemysteriesofthebourgeoisieunmasked。
　　Tosumup：Labor，beingitselfacommodity，ismeasuredassuchbythelabortimeneededtoproducethelabor—commodity。Andwhatisneededtoproducethislabor—commodity？Justenoughlabortimetoproducetheobjectsindispensabletotheconstantmaintenanceoflabor，thatis，tokeeptheworkeraliveandinaconditiontopropagatehisrace。Thenaturalpriceoflaborisnootherthanthewageminimum。[3]Ifthecurrentrateofwagesrisesabovethisnaturalprice，itispreciselybecausethelawofvalueputasaprinciplebyM。Proudhonhappenstobecounterbalancedbytheconsequencesofthevaryingrelationsofsupplyanddemand。Buttheminimumwageisnonethelessthecentretowardswhichthecurrentratesofwagesgravitate。
　　Thusrelativevalue，measuredbylabortime，isinevitablytheformulaofthepresentenslavementoftheworker，insteadofbeing，asM。Proudhonwouldhaveit，the"revolutionarytheory"oftheemancipationoftheproletariat。
　　Letusnowseetowhatextenttheapplicationoflabortimeasameasureofvalueisincompatiblewiththeexistingclassantagonismandtheunequaldistributionoftheproductbetweentheimmediateworkerandtheownerofaccumulatedlabor。
　　Letustakeaparticularproduct：broadcloth，whichhasrequiredthesamequantityoflaborasthelinen。
　　Ifthereisanexchangeofthesetwoproducts，thereisanexchangeofequalquantitiesoflabor。Inexchangingtheseequalquantitiesoflabortime，onedoesnotchangethereciprocalpositionoftheproducers，anymorethanonechangesanythinginthesituationoftheworkersandmanufacturersamongthemselves。Tosaythatthisexchangeofproductsmeasuredbylabortimeresultsinanequalityofpaymentforalltheproducersistosupposethatequalityofparticipationintheproductexistedbeforetheexchange。
　　Whentheexchangeofbroadclothforlinenhasbeenaccomplished，theproducersofbroadclothwillshareinthelineninaproportionequaltothatinwhichtheypreviouslysharedinthebroadcloth。
　　M。Proudhon’sillusionisbroughtaboutbyhistakingforaconsequencewhatcouldbeatmostbutagratuitoussupposition。
　　Letusgofurther。
　　Doeslabortime，asthemeasureofvalue，supposeatleastthatthedaysareequivalent，andthatoneman’sdayisworthasmuchasanother’s？
　　No。
　　Letussupposeforamomentthatajeweller’sdayisequivalenttothreedaysofaweaver;thefactremainsthatanychangeinthevalueofjewelsrelativetothatofwovenmaterials，unlessitbethetransitoryresultofthefluctuationsofsupplyanddemand，musthaveasitscauseareductionoranincreaseinthelabortimeexpendedintheproductionofoneortheother。Ifthreeworkingdaysofdifferentworkersberelatedtooneanotherintheratioof1：2：3，theneverychangeintherelativevalueoftheirproductswillbeachangeinthissameproportionof1：2：3。
　　Thusvaluescanbemeasuredbylabortime，inspiteoftheinequalityofvalueofdifferentworkingdays;buttoapplysuchameasurewemusthaveacomparativescaleofthedifferentworkingdays：itiscompetitionthatsetsupthisscale。
　　Isyourhour’slaborworthmine？Thatisaquestionwhichisdecidedbycompetition。
　　Competition，accordingtoanAmericaneconomist，determineshowmanydaysofsimplelaborarecontainedinoneday’scompoundlabor。Doesnotthisreductionofdaysofcompoundlabortodaysofsimplelaborsupposethatsimplelaborisitselftakenasameasureofvalue？Ifthemerequantityoflaborfunctionsasameasureofvalueregardlessofquality，itpresupposesthatsimplelaborhasbecomethepivotofindustry。Itpresupposesthatlaborhasbeenequalizedbythesubordinationofmantothemachineorbytheextremedivisionoflabor;thatmenareeffacedbytheirlabor;
　　thatthependulumoftheclockhasbecomeasaccurateameasureoftherelativeactivityoftwoworkersasitisofthespeedoftwolocomotives。
　　Therefore，weshouldnotsaythatoneman’shourisworthanotherman’shour，butratherthatonemanduringanhourisworthjustasmuchasanothermanduringanhour。Timeiseverything，manisnothing;heis，atthemost，time’scarcase。Qualitynolongermatters。Quantityalonedecideseverything;
　　hourforhour，dayforday;butthisequalizingoflaborisnotbyanymeanstheworkofM。Proudhon’seternaljustice;itispurelyandsimplyafactofmodernindustry。
　　Intheautomaticworkshop，oneworker’slaborisscarelydistinguishableinanywayfromanotherworker’slabor：workerscanonlybedistinguishedonefromanotherbythelengthoftimetheytakefortheirwork。Nevertheless，thisquantitativedifferencebecomes，fromacertainpointofview，qualitative，inthatthetimetheytakefortheirworkdependspartlyonpurelymaterialcauses，suchasphysicalconstitution，ageandsex;partlyonpurelynegativemoralcauses，suchaspatience，imperturbability，diligence。Inshort，ifthereisadifferenceofqualityinthelaborofdifferentworkers，itisatmostaqualityofthelastkind，whichisfarfrombeingadistinctivespeciality。Thisiswhatthestateofaffairsinmodernindustryamountstointhelastanalysis。Itisuponthisequality，alreadyrealizedinautomaticlabor，thatM。Proudhonwieldshissmoothing—planeof"equalization"，whichhemeanstoestablishuniversallyin"timetocome"！
　　Allthe"equalitarian"consequenceswhichM。ProudhondeducesfromRicardo’sdoctrinearebasedonafundamentalerror。Heconfoundsthevalueofcommoditiesmeasuredbythequantityoflaborembodiedinthemwiththevalueofcommoditiesmeasuredby"thevalueoflabor"。Ifthesetwowaysofmeasuringthevalueofcommoditieswereequivalent，itcouldbesaidindifferentlythattherelativevalueofanycommodityismeasuredbythequantityoflaborembodiedinit;orthatitismeasuredbythequantityoflaboritcanbuy;oragainthatitismeasuredbythequantityoflaborwhichcanacquireit。Butthisisfarfrombeingso。
　　Thevalueoflaborcannomoreserveasameasureofvaluethanthevalueofanyothercommodity。Afewexampleswillsufficetoexplainstillbetterwhatwehavejuststated。
　　Ifaquarterofwheatcosttwodays’laborinsteadofone，itwouldhavetwiceitsoriginalvalue;butitwouldnotsetinoperationdoublethequantityoflabor，becauseitwouldcontainnomorenutritivematterthanbefore。Thusthevalueofthecorn，measuredbythequantityoflaborusedtoproduceit，wouldhavedoubled;butmeasuredeitherbythequantityoflaboritcanbuyorthequantityoflaborwithwhichitcanbebought，itwouldbefarfromhavingdoubled。Ontheotherhand，ifthesamelaborproducedtwiceasmanyclothesasbefore，theirrelativevaluewouldfallbyhalf;but，nevertheless，thisdoublequantityofclothingwouldnottherebybereducedtodisposingoveronlyhalfthequantityoflabor，norcouldthesamelaborcommandthedoublequantityofclothing;
　　forhalftheclotheswouldstillgoonrenderingtheworkerthesameserviceasbefore。
　　Thusitisgoingagainsteconomicfactstodeterminetherelativevalueofcommoditiesbythevalueoflabor。Itismovinginaviciouscircle，itistodeterminerelativevaluebyarelativevaluewhichitselfneedstobedetermined。
　　ItisbeyonddoubtthatM。Proudhonconfusesthetwomeasures，measurebythelabortimeneededfortheproductionofacommodityandmeasurebythevalueofthelabor。"Anyman’slabor，"hesays，"canbuythevalueitrepresents。"Thus，accordingtohim，acertainquantityoflaborembodiedinaproductisequivalenttotheworker’spayment，thatis，tothevalueoflabor。Itisthesamereasoningthatmakeshimconfusecostofproductionwithwages。
　　"Whatarewages？Theyarethecostpriceofcorn，etc。，theintegralpriceofallthings。"
　　Letusgostillfurther。
　　"Wagesaretheproportionalityoftheelementswhichcomposewealth。"
　　Whatarewages？Theyarethevalueoflabor。
　　AdamSmithtakesasthemeasureofvalue，nowthetimeoflaborneededfortheproductionofacommodity，nowthevalueoflabor。Ricardoexposesthiserrorbyshowingclearlythedisparityofthesetwowaysofmeasuring。
　　M。ProudhongoesonebetterthanAdamSmithinerrorbyidentifyingthetwothingswhichthelatterhadmerelyputinjuxtaposition。
　　Itisinordertofindtheproperpropositioninwhichworkersshouldshareintheproducts，or，inotherwords，todeterminetherelativevalueoflabor，thatM。Proudhonseeksameasurefortherelativevalueofcommodities。Tofindoutthemeasurerelativevalueofcommoditieshecanthinkofnothingbetterthantogiveastheequivalentofacertainquantityoflaborthesumtotaloftheproductsithascreated，whichisasgoodassupposingthatthewholeofsocietyconsistsmerelyofworkerswhoreceivetheirownproduceaswages。Inthesecondplace，hetakesforgrantedtheequivalenceoftheworkingdaysofdifferentworkers。Inshort，heseeksthemeasureoftherelativevalueofcommodities。Whatadmirabledialectics！
　　"Sayandtheeconomistsafterhimhaveobservedthatlaborbeingitselfsubjecttovaluation，beingacommoditylikeanyothercommodity，itismovinginaviciouscircletotreatitastheprincipleandthedeterminingcauseofvalue。Insodoing，theseeconomists，iftheywillallowmetosayso，showaprodigiouscarelessness。Laborissaidtohavevaluenotasacommodityitself，butinviewofthevalueswhichitissupposedpotentiallytocontain。Thevalueoflaborisafigurativeexpression，ananticipationofthecausefortheeffect。Itisafictionofthesamestampastheproductivityofcapital。Laborproduces，capitalhasvalue……
　　Byasortofellipsisonespeaksofthevalueoflabor……
　　Laborlikeliberty……isathingvagueandindeterminatebynature，butdefinedqualitativelybyitsobject，thatistosay，itbecomesarealitybytheproduct。"
　　[I61]
　　"Butisthereanyneedtodwellonthis？Themomenttheeconomist（readM。Proudhon）changesthenameofthings，verarerumvocabula[thetruenameofthings]，heisimplicitlyconfessinghisimpotenceandproclaiminghimselfnotprivytothecause。"
　　（Proudhon，I，188）
　　WehaveseenthatM。Proudhonmakesthevalueoflaborthe"determiningcause"ofthevalueofproductstosuchanextentthatforhimwages，theofficialnameforthe"valueoflabor"，formtheintegralpriceofallthings：thatiswhySay’sobjectiontroubleshiM。Inlaborasacommodity，whichisagrimreality，heseesnothingbutagrammaticalellipsis。Thusthewholeofexistingsociety，foundedonlaborasacommodity，ishenceforthfoundedonapoeticlicence，afigurativeexpression。Ifsocietywantsto"eliminateallthedrawbacks"thatassailit，well，letiteliminatealltheill—soundingterms，changethelanguage;andtothisendithasonlytoapplytotheAcademyforaneweditionofitsdictionary。Afterallthatwehavejustseen，itiseasyforustounderstandwhyM。Proudhon，inaworkonpoliticaleconomy，hastoenteruponlongdissertationsonetymologyandotherpartsofgrammar。Thusheisstilllearnedlydiscussingtheantiquatedderivationofservusfromservare。Thesephilologicaldissertationshaveadeepmeaning，anesotericmeaning——theyformanessentialpartofM。Proudhon’sargument。
　　Labor[4]，inasmuchasitisboughtandsold，isacommoditylikeanyothercommodity，andhas，inconsequence，anexchangevalue。Butthevalueoflabor，orlaborasacommodity，producesaslittleasthevalueofwheat，orwheatasacommodity，servesasfood。
　　Labor"isworth"moreorless，accordingtowhetherfoodcommoditiesaremoreorlessdear，whetherthesupplyanddemandofhandsexisttosuchorsuchadegree，etc。，etc。
　　Laborisnota"vaguething";itisalwayssomedefinitelabor，itisneverlaboringeneralthatisboughtandsold。Itisnotonlylaborthatisqualitativelydefinedbytheobject;butalsotheobjectwhichisdeterminedbythespecificqualityoflabor。
　　Labor，insofarasitisboughtandsold，isitselfacommodity。