Money and currency

[miychi <miyachi9@xxxxxxxxxx>]

On 2002.04.17 08:34 AM, "Romain Kroes" <romain.kroes@xxxxxxxxxxxx> wrote:

> Not at all, Chris. Exchange value of currencies does not belong to any
> Marxist theory, as Marx believed in a gold currency for ever.
> Actually, exchange value of currencies depends on the sign of the balances
> of trade, with a reversion of the law when the currency of world system's
> metropolis has been imposed as the common currency, like today's dollar. And
> this is completely out of Marxist theories.
> RK
> ----- Original Message -----
> From: "Chris Burford" <cburford@xxxxxxxxxx>
> To: <pen-l@xxxxxxxxxxxxxxxxxxx>; <marxism-thaxis@xxxxxxxxxxxxxxxxxxx>
> Sent: Wednesday, April 17, 2002 12:50 AM
> Subject: [PEN-L:25010] The exchange value of currencies
>
>
>> The organic composition of capital is the measure of the exchange value of
>> currencies.
>>
>> Is this a correct application of marxism?
>>
>> Chris Burford
>>
>>
ON CURREBCY

 Marx used concept of currency in volume3 of Capital
There, He criticized Tookes and Fullarton's account.
Marx said "The distinction between currency and capital, as Tooke, Wilson,
and others draw it, whereby the differences between medium of circulation as
money, as money-capital generally, and as interest-bearing capital (moneyed
capital in the English sense) are thrown together pell-mell, comes down to
two things.[1]"  and continued "Currency circulates on the one hand as coin
(money), so far as it promotes the expenditure of revenue, hence the traffic
between the individual consumers and the retail merchants, to which category
belong all merchants who sell to the consumers -- to the individual
consumers as distinct from productive consumers or producers. Here money
circulates in the function of coin, although it continually replaces
capital. A certain portion of money in a particular country is continually
devoted to this function, although this portion consists of perpetually
changing individual coins. In so far as money promotes the transfer of
capital, however, either as a means of purchase (medium of circulation) or
as a means of payment, it is capital. It is, therefore, neither its function
as a means of purchase, nor that as a means of payment, which distinguishes
it from coin, for it may also act as a means of purchase between one dealer
and another so far as they buy from one another in hard cash, and also as a
means of payment between dealer and consumer so far as credit is given and
the revenue consumed before it is paid. The difference is, therefore, that
in the second case this money not only replaces the capital for one side,
the seller, but is expended, advanced., by the other side, the buyer, as
capital. The difference, then, is in fact that between the money-form of
revenue and the money-form of capital, but not that between currency and
capital, for a certain quantity of money circulates in the transactions
between dealers as well as in the transactions between consumers and
dealers.. It is, therefore, equally currency in both functions. Tooke's
conception introduces confusion into this question in various ways"

And He criticized Tookes as follows  "Confusing the functional distinctions
that money in one form is currency, and capital in the other. In so far as
money serves in one or another function, be it to realise revenue or
transfer capital, it functions in buying and selling, or in paying, as a
means of purchase or a means of payment, and, in the wider sense of the
word, as currency." and adding  "To reduce the difference between
circulation as circulation of revenue and circulation of capital into a
difference between currency and capital is, therefore, altogether wrong.
This mode of expression is in Tooke's case due to his simply assuming the
standpoint of a banker issuing his own bank-notes"

Thus currency is used on the level of fictitious capital, and not used in
the sphere of simple circulation. In the sphere of simple circulation,He
Dealt with functions of money as 1 measure of value 2 The Medium of
Circulation and in medium of circulation a. The Metamorphosis of Commodities
B. The currency  of money c. Coin and symbols of value.  Thirdly he dealt
with money itself as a. Hoarding b. Means of Payment c. Universal Money

In the current international credit system, simple commodity appears as
"creditified commodity"or " creditified money" so it is difficult to
distinguish money and currency.

MIYACHI TATSUO
Psychiatric Department
Komaki municipal hosipital
1-20.JOHBUHSHI
KOMAKI CITY
AICHI PREF.
486-0044
TEL:0568-76-4131
FAX 0568-76-4145
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