Karl Marx was born in 1818 in Trier, Germany and studied in Bonn and Berlin. Influenced by Hegel, he later reacted against idealist philosophy and began to develop his own theory of historical materialism. He related the state of society to its economic foundations and mode of production, and recommended armed revolution on the part of the proletariat. Together with Engels, who he met in Paris, he wrote the Manifesto of the Communist Party. He lived in England as a refugee until his death in 1888, after participating in an unsuccessful revolution in Germany. Ernst Mandel was a member of the Belgian TUV from 1954 to 1963 and was chosen for the annual Alfred Marshall Lectures by Cambridge University in 1978. He died in 1995 and the Guardian described him as 'one of the most creative and independent-minded revolutionary Marxist thinkers of the post-war world.'

Introduction (Notebook M)1. Production in general
2. General relation between production, distribution, exchange and consumption
3. The method of political economy
4. Means (forces) of production and relations of production, relations of production and relations of circulation
The Chapter on Money (Notebooks I and II, pp. 1-7)Darimon's theory of crises
Gold export and crises
Convertibility and note circulation
Value and price
Transformation of the commodity into exchange value; money
Contradictions in the money relation:
(1) Contradiction between commodity as product and commodity as exchange value
(2) Contradiction between purchase and sale
(3) Contradiction between exchange for the sake of exchange and exchange for the sake of commodities
(4) Contradiction between money as particular commodity and money as general commodity (The Economist and the Morning Star on money)
Attempts to overcome the contradictions by the issue of time-chits
Exchange value as mediation of private interests
Exchange value (money) as social bond
Social relations which create an undeveloped system of exchange
The product becomes a commodity; the commodity becomes exchange value; the exchange value of the commodity becomes money
Money as measure
Money as objectification of general labour time (Incidental remark on gold and silver)
Distinction between particular labor time and general labour time
Distinction between planned distribution of labour time and measurement of exchange values by labour time (Strabo on money among the Albanians)
The precious metals as subjects of the money relation:
(a) Gold and silver in relation to the other metals
(b) Fluctuations in the value-relations between the different metals
(c) and (d) (headings only): Sources of gold and silver; money as coin
Circulation of money and opposite circulation of commodities
General concept of circulation:
(a) Circulation circulates exchange values in the form of prices (Distinction between real money and accounting money)
(b) Money as the medium of exchange (What determines the quantity of money required for circulation) (Comment on (a))
Commodity circulation requires appropriation through alienation
Circulation as an endlessly repeated process
The price as external to and independent of the commodity: Creation of general medium of exchange; exchange as a special business
Double motion of circulation: C-M; M-C, and M-C; C-M
Three contradictory functions of money:
(1) Money as general material of contracts, as measuring unit of exchange values
(2) Money as medium of exchange and realizer of prices
(Money, as representative of price, allows commodities to be exchanged at equivalent prices)
(An example of confusion between the contradictory functions of money)
(Money as particular commodity and money as general commodity)
(3) Money as money: as material representative of wealth (accumulation of money)
(Dissolution of ancient communities through money)
(Money, unlike coin, has a universal character)
(Money in its third function is the negation #negative unity# of its character as medium of circulation and measure)
(Money in its metallic being; accumulation of gold and silver)
(Headings on money, to be elaborated later)
The Chapter on Capital (Notebooks II pp. 8-28, III, IV, V, VI and VII)The Chapter on Money as Capital:
Difficulty in grasping money in its fully developed character as money
Simple exchange: relations between the exchangers (Critique of socialists and harmonizers: Bastiat, Proudhon)
Section One: The Production Process of Capital
Nothing is expressed when capital is characterized merely as a sum of values
Landed property and capital
Capital comes from circulation; its content is exchange value; merchant capital, money capital, and money interest
Circulation presupposes another process; motion between presupposed extremes
Transition from circulation to capitalist production
"Capital is accumulated labour (etc.)"
"Capital is a sum of values used for the production of values"
Circulation, and exchange value deriving from circulation, the presupposition of capital
Exchange value emerging from circulation, a presupposition of ciruclation, preserving and multiplying itself in it by means of labour
Product and capital. Value and capital. Proudhon
Capital and labour. Exchange value and use value for exchange value
Money and its use value (labour) in this relation capital: Self-multiplication of value is its only movement
Capital, as regards substance, objectified labour. Its antithesis, living, productive labour
Productive labour and labour as performance of a service
Productive and unproductive labour. A. Smith etc.
The two different processes in the exchange of capital with labour
Capital and modern landed property
The market
Exchange between capital and labour. Piecework wages
Value of labour power
Share of the wage labourer in general wealth determined only quantitatively
Money is the worker's equivalent; he thus confronts capital as an equal
But the aim of his exchange is satisfaction of his need. Money for him is only medium of circulation
Savings, self-denial as means of the worker's enrichment
Valuelessness and devaluation of the worker a condition of capital
(Labour power as capital!)
Wages not productive
The exchange between capital and labour belongs within simple circulation, does not enrich the worker
Separation of labour and property the precondition of this exchange
Labour as object absolute poverty, labour as subject general possibility of wealth
Labour without particular specificity confronts capital
Labour process absorbed into capital
(Capital and capitalist)
Production process as content of capital
The worker relates to his labour as exchange value, the capitalist as use value
The worker divests himself of labour as the wealth-producing power; capital appropriates it as such
Tranformation of labour into capital
Realization process
(Costs of production)
Mere self-preservation, non-multiplication of value contradicts the essence of capital
Capital enters the cost of production as capital. Interest bearing capital (Parentheses on: original accumulation of capital, historic presuppositions of capital, production in general)
Surplus value. Surplus labour time
Value of labour. How it is determined
Conditions for the self-realization of capital
Capital is productive as creator of surplus labour
But this is only a historical and transitory phenomenon
Theories of surplus value (Ricardo; the Physiocrats; Adam Smith; Ricardo again)
Surplus value and productive force. Relation when these increase
Result: in proportion as necessary labour is already diminished, the realization of capital becomes more difficult
Concerning increases in the value of capital
Labour does not reproduce the value of material and instrument, but rather preserves it by relating to them in the labour process as to their objective conditions
Absolute surplus labour time. Relative
It is not the quantity of living labour, but rather its quality as labour which preserves the labour time already contained in the material
The change of form and substance in the direct production process
It is inherent in the simple production process that the previous stage of production is preserved through the subsequent one
Preservation of the old use value by new labour
The quantity of objectified labour is preserved because contact with living labour preserves its quality as use value for new labour
In the real production process, the separation of labour from its objective moments of existence is suspended. But in this process labour is already incorporated in capital
The capitalist obtains surplus labour free of charge together with the maintenance of the value of material and instrument
Through the appropriation of present labour, capital already possesses a claim to the appropriation of future labour
Confusion of profit and surplus value. Carey's erroneous calculation
The capitalist, who does not pay the worker for the preservation of the old value, then demands remuneration for giving the worker permission to preserve the old capital

Surplus Value and Profit
Difference between consumption of the instrument and of wages. The former consumed in the production process, the latter outside it
Increase of surplus value and decrease in rate of profit
Multiplication of simultaneous working days
Machinery
Growth of the constant part of capital in relation to the variable part spent on wages=growth of the productivity of labour
Proportion in which capital has to increase in order to employ the same number of workers if productivity rises
Percentage of total capital can express very different relations
Capital (like property in general) rests on the productivity of labour
Increase of surplus labour time. Increase of simultaneous working days. (Population)
(Population can increase in proportion as necessary labour time becomes smaller)
Transition from the process of the production of capital into the process of circulation
Section Two: The Circulation Process of Capital
Devaluation of capital itself owing to increase of productive forces
(Competition)
Capital as unity and contradiction of the production process and the realization process
Capital as limit to production. Overproduction
Demand by the workers themselves
Barriers to capitalist production
OVerproduction; Proudhon
Price of the commodity and labour time
The capitalist does not sell too dear; but still above what the thing costs him
Price can fall below value without damage to capital
Number and unit (measure)...