In the form C' ... C' the consumption of the entire commodity-product is assumed as the condition of the normal course of the circuit of capital itself. The individual consumption of the labourer and the individual consumption of the unaccumulated part of the surplus-product comprise the entire individual consumption. Hence consumption in its totality -- individual as well as productive -- enters into circuit C' as a condition of it. Productive consumption (which essentially includes the individual consumption of the labourer, since labour-power is a continuous product, with certain limits, of the labourer's individual consumption) is carried on by every individual capital.
Individual consumption, except in so far as it is required for the existence of the individual capitalist, is here assumed to be only a social act, but by no means an act of the individual capitalist.
In Forms I and II the aggregate movement appears as a movement of advanced capital-value. In Form III the self-expanded capital, in the shape of the total commodity-product, forms the starting-point and has the form of moving capital, commodity-capital. Not until its transformation into money has been accomplished does the movement branch out into movements of capital and of revenue. The distribution of the total social product, as well as the special distribution of the product for each individual commodity-capital, into an individual consumption-fund on the one hand and into reproduction fund on the other is included in this form in the circuit of capital.
In M... M' possible enlargement of the circuit is included, depending on the volume of m entering into the renewed circuit.
In P ... P the new circuit may be started by P with the same or perhaps even a smaller value and yet may represent a reproduction on an extended scale, for instance when certain elements of commodities become cheaper on account of increased productivity of labour. Vice versa, a productive capital which has increased in value may, in a contrary case, represent reproduction on a materially contracted scale as for instance when elements of production have become dearer. The same is true of C' ... C'.
In C' ... C' capital in the form of commodities is the premise of production. It re-appears as a premise within this circuit in the second C. If this C has not yet been produced or reproduced the circuit is obstructed.
This C must be reproduced, for the greater part of as C' of some other industrial capital. In this circuit C' exists as the point of departure, of transition, and of the conclusion of the movement; hence it is always there. It is a permanent condition of the process of reproduction.
C' ... C' is distinguished from Forms I and II by still another feature. All three circuits have this in common, that capital begins its circular course in the same form in which it concludes it, and thus finds itself in the initial form in which it opens the circuit anew. The initial form M, P or C' is always the one in which capital-value (in III augmented by its surplus-value) is advanced, in other words its original form in regard to the circuit. The concluding form M', P or C' is always a changed form of a functional form which preceded in the circuit and is not the original form.
Thus M' in I is a changed form of C', the final P in II is a changed form of M (and this transformation is accomplished in I and II by a simple act of commodity circulation, by a formal change of position of commodity and money); in III, C' is a changed form of the productive capital P. But here, in III, the transformation, in the first place, does not merely concern the functional form of capital but also the magnitude of its value; in the second place, however, the transformation is not the result of a merely formal change in position pertaining to the circulation process, but of a real transformation experienced by the use-form and value of the commodity constituents of the productive capital in the process of production.
The form of the initial extreme M, P or C' is the premise of the corresponding circuit I, II or III. The form returning in the final extreme is premised and consequently brought about by the series of metamorphoses of the circuit itself. C', as the terminal point in the circuit of an individual industrial capital, presupposes only the non-circulation form P of the same industrial capital of which it is the product. M', as the terminal point of I, as the converted form of C' (C'---M'), presupposes that M is in the hands of the buyer, exists outside of the circuit M ... M', and is drawn into it and made its own terminal form by the sale of C'. Thus the terminal P in II presupposes that L and MP (C) exist outside and are incorporated in it as its terminal form by means of M---C. But apart from the last extreme, the circuit of individual money-capital does not presuppose the existence of money-capital in general, nor does the circuit of individual productive capital presuppose the existence of productive capital. In I, M may be the first money-capital; in II, P may be the first productive capital appearing on the historical scene. But in III, | C ---| M--- C< L MP ... P ... C'
C' | --- M
