uments of labour, hence fixed capital, are also required to build machines, and in the second place fixed capital, such as machinery, etc., is likewise required to make raw materials, since productive capital always includes instruments of labour, but not always material of labour. He himself says immediately afterwards:
“Land, mines, and fisheries, require all both a fixed and a circulating capital to cultivate them;”
(thus he admits that not only circulating but also fixed capital is required for the production of raw material)
“and” (new error at this point) “their produce replaces with a profit, not only those capitals, but all the others in the society.” (p. 188.)
This is entirely wrong. Their produce furnishes the raw material, auxiliary material, etc., for all other branches of industry. But their value does not replace the value of all other social capitals; it replaces only their own capital-value (plus the surplus-value). Adam Smith is here again in the grip of his physiocratic reminiscences.
Considered socially it is true that the part of the commodity-capital which consists of products that can serve only as instruments of labour must — unless they have been produced to no purpose, cannot be sold — sooner or later function as instruments of labour, i.e., with capitalist production as their basis, they must, whenever they cease to be commodities, form real, as before they formed prospective, elements of the fixed part of the social productive capital.
But there is a distinction here, arising from the bodily form of the product.
A spinning machine for instance has no use-values, unless it is used for spinning, unless therefore it functions as an element of production and consequently, from the point of view of the capitalist, as a fixed component part of a productive capital. But a spinning machine is movable. It may be exported from the country in which it was produced and sold abroad directly or indirectly for raw materials, etc., or for champagne. In that case it has functioned only as a commodity-capital in the country in which it was produced, but never as fixed capital, not even after its sale.
Products however which are localised by being anchored in the soil, and can therefore be used only locally, such as factory buildings, railways, bridges, tunnels, docks, etc., soil improvements, etc., cannot be exported bodily, neck and crop. They are not movable. They are either useless, or as soon as they have been sold must function as fixed capital in the country that produced them. To their capitalist producer, who builds factories or improves land for speculative sale, these things are forms of his commodity-capital, or, according to Adam Smith, forms of circulating capital. But viewed socially these things — if they are not to be useless — must ultimately function as fixed capital in that very country, in some local process of production. From this it does not follow in the least that immovables are in themselves fixed capital. They may belong, as dwelling houses, etc., to the consumption-fund, and in that case they are not part whatever of the social capital, although they constitute an element of the social wealth of which capital is only a part. The producer of these things, to speak in the language of Adam Smith, makes a profit by their sale. And so they are circulating capital! Their practical utiliser, their ultimate purchaser, can use them only by applying them in the process of production, and so they are fixed capital!
Titles to property, for instance railway shares, may change hands every day, and their owner may make a profit by their sale even in foreign countries, so that titles to property are exportable, although the railway itself is not. Nevertheless these things must either lie fallow in the very country in which they are localised, or function as a fixed component of some productive capital. In the same way manufacturer A may make a profit by selling his factory to manufacturer B, but this does not prevent the factory from functioning as fixed capital the same as before.
Therefore, while t