HOW THE DEVELOPMENT OF CAPITALISM LED TO COMMUNIST REVOLUTION

to this purpose? No, he cannot do so, for this reason. Money flows in continually, but only in driblets. The commodities he produces are sold from time to time, and from time to time money is received for them. Evidently, that he may use these receipts for the expansion of his enterprise, the accumulation of a considerable sum is requisite. He will therefore have to wait until he has secured as much money as he needs — let us suppose that it is for the purchase of new machinery. And until then, what is he to do? Till then he cannot use the money. It lies idle. This does not happen to one or to two capitalists merely; at one time or another it happens to all. Free capital is constantly available. We have, however, pointed out before that there is a demand for capital. On the one hand there are superfluous sums lying idle; on the other hand there is a need for these sums. The more rapid the centralisation of capital, the more vigorous is the demand for large sums of capital, but the greater likewise is the quantity of free capital. It is this state of affairs which gives the banks their importance. The capitalist, not wishing his money to lie idle, puts it in the bank, and the bank lends it to those who need it for the development of old enterprises or for the starting of new undertakings. Certain manufacturers deposit money in the bank, and the bank lends the money to other manufacturers. These latter, with the aid of the borrowed capital, extract surplus value. Part of their receipts is paid to the bank as interest. The bank then pays a portion of this last sum to its depositors, and keeps the rest as banking profits. Thus the machine grinds on. We can now understand why, during the latest phase of the capitalist regime, the role of the banks, their importance, and their activity, have expanded to a marvellous