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Volume I: Chapter 30: Reaction of the Agricultural Revolution on Industry. Creation of the Home-Market for Industrial Capital

Volume I
Chapter 30: Reaction of the Agricultural Revolution on Industry. Creation of the Home-Market for Industrial Capital
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table of contents
  1. Contents
  2. Prefaces
    1. Preface to the First German Edition (Marx, 1867)
    2. Preface to the French Edition (Marx, 1872)
    3. Afterword to the Second German Edition (1873)
    4. Afterword to the French Edition (1875)
    5. Preface to the Third German Edition (1883)
    6. Preface to the English Edition (Engels, 1886)
    7. Preface to the Fourth German Edition (Engels, 1890)
  3. Part 1: Commodities and Money
    1. Chapter 1: Commodities
    2. Chapter 2: Exchange
    3. Chapter 3: Money, Or the Circulation of Commodities
  4. Part 2: Transformation of Money into Capital
    1. Chapter 4: The General Formula for Capital
    2. Chapter 5: Contradictions in the General Formula of Capital
    3. Chapter 6: The Buying and Selling of Labour-Power
  5. Part 3: The Production of Absolute Surplus-Value
    1. Chapter 7: The Labour-Process and the Process of Producing Surplus-Value
    2. Chapter 8: Constant Capital and Variable Capital
    3. Chapter 9: The Rate of Surplus-Value
    4. Chapter 10: The Working day
    5. Chapter 11: Rate and Mass of Surplus-Value
  6. Part 4: Production of Relative Surplus-Value
    1. Chapter 12: The Concept of Relative Surplus-Value
    2. Chapter 13: Co-operation
    3. Chapter 14: Division of Labour and Manufacture
    4. Chapter 15: Machinery and Modern Industry
  7. Part 5: Production of Absolute and Relative Surplus-Value
    1. Chapter 16: Absolute and Relative Surplus-Value
    2. Chapter 17: Changes of Magnitude in the Price of Labour-Power and in Surplus-Value
    3. Chapter 18: Various Formula for the rate of Surplus-Value
  8. Part 6: Wages
    1. Chapter 19: The Transformation of the Value (and Respective Price) of Labour-Power into Wages
    2. Chapter 20: Time-Wages
    3. Chapter 21: Piece Wages
    4. Chapter 22: National Differences of Wages
  9. Part 7: The Accumulation of Capital
    1. Chapter 23: Simple Reproduction
    2. Chapter 24: Conversion of Surplus-Value into Capital
    3. Chapter 25: The General Law of Capitalist Accumulation
  10. Part 8: Primitive Accumulation
    1. Chapter 26: The Secret of Primitive Accumulation
    2. Chapter 27: Expropriation of the Agricultural Population From the Land
    3. Chapter 28: Bloody Legislation Against the Expropriated, from the End of the 15th Century. Forcing Down of Wages by Acts of Parliament
    4. Chapter 29: Genesis of the Capitalist Farmer
    5. Chapter 30: Reaction of the Agricultural Revolution on Industry. Creation of the Home-Market for Industrial Capital
    6. Chapter 31: The Genesis of the Industrial Capitalist
    7. Chapter 32: Historical Tendency of Capitalist Accumulation
    8. Chapter 33: The Modern Theory of Colonisation1

Chapter 30: Reaction of the Agricultural Revolution on Industry. Creation of the Home-Market for Industrial Capital

The expropriation and expulsion of the agricultural population, intermittent but renewed again and again, supplied, as we saw, the town industries with a mass of proletarians entirely unconnected with the corporate guilds and unfettered by them; a fortunate circumstance that makes old A. Anderson (not to be confounded with James Anderson), in his “History of Commerce,” believe in the direct intervention of Providence. We must still pause a moment on this element of primitive accumulation. The thinning-out of the independent, self-supporting peasants not only brought about the crowding together of the industrial proletariat, in the way that Geoffrey Saint Hilaire explained the condensation of cosmical matter at one place, by its rarefaction at another.1 In spite of the smaller number of its cultivators, the soil brought forth as much or more produce, after as before, because the revolution in the conditions of landed property was accompanied by improved methods of culture, greater co-operation, concentration of the means of production, &c., and because not only were the agricultural wage labourers put on the strain more intensely2, but the field of production on which they worked for themselves became more and more contracted. With the setting free of a part of the agricultural population, therefore, their former means of nourishment were also set free. They were now transformed into material elements of variable capital. The peasant, expropriated and cast adrift, must buy their value in the form of wages, from his new master, the industrial capitalist. That which holds good of the means of subsistence holds with the raw materials of industry dependent upon home agriculture. They were transformed into an element of constant capital. Suppose, e.g., a part of the Westphalian peasants, who, at the time of Frederick II, all span flax, forcibly expropriated and hunted from the soil; and the other part that remained, turned into day labourers of large farmers. At the same time arise large establishments for flax-spinning and weaving, in which the men “set free” now work for wages. The flax looks exactly as before. Not a fibre of it is changed, but a new social soul has popped into its body. It forms now a part of the constant capital of the master manufacturer. Formerly divided among a number of small producers, who cultivated it themselves and with their families spun it in retail fashion, it is now concentrated in the hand of one capitalist, who sets others to spin and weave it for him. The extra labour expended in flax-spinning realised itself formerly in extra income to numerous peasant families, or maybe, in Frederick II’s time, in taxes pour le roi de Prusse. It realises itself now in profit for a few capitalists. The spindles and looms, formerly scattered over the face of the country, are now crowded together in a few great labour-barracks, together with the labourers and the raw material. And spindles, looms, raw material, are now transformed from means of independent existence for the spinners and weavers, into means for commanding them and sucking out of them unpaid labour.3 One does not perceive, when looking at the large manufactories and the large farms, that they have originated from the throwing into one of many small centres of production, and have been built up by the expropriation of many small independent producers. Nevertheless, the popular intuition was not at fault. In the time of Mirabeau, the lion of the Revolution, the great manufactories were still called manufactures réunies, workshops thrown into one, as we speak of fields thrown into one. Says Mirabeau:

“We are only paying attention to the grand manufactories, in which hundreds of men work under a director and which are commonly called manufactures réunies. Those where a very large number of labourers work, each separately and on his own account, are hardly considered; they are placed at an infinite distance from the others. This is a great error, as the latter alone make a really important object of national prosperity.... The large workshop (manufacture réunie) will enrich prodigiously one or two entrepreneurs, but the labourers will only be journeymen, paid more or less, and will not have any share in the success of the undertaking. In the discrete workshop (manufacture separée), on the contrary, no one will become rich, but many labourers will be comfortable; the saving and the industrious will be able to amass a little capital, to put by a little for a birth of a child, for an illness, for themselves or their belongings. The number of saving and industrious labourers will increase, because they will see in good conduct, in activity, a means of essentially bettering their condition, and not of obtaining a small rise in wages that can never be of any importance of the future, and whose sole result is to place men in the position to live a little better, but only from day to day.... The large workshops, undertakings of certain private persons who pay labourers from day to day to work for their gain, may be able to put these private individuals at their ease, but they will never be an object worth the attention of governments. Discrete workshops, for the most part combined with cultivation of small holdings, are the only free ones.”4 The expropriation and eviction of a part of the agricultural population not only set free for industrial capital, the labourers, their means of subsistence, and material for labour; it also created the home-market.

In fact, the events that transformed the small peasants into wage labourers, and their means of subsistence and of labour into material elements of capital, created, at the same time, a home-market for the latter. Formerly, the peasant family produced the means of subsistence and the raw materials, which they themselves, for the most part, consumed. These raw materials and means of subsistence have now become commodities; the large farmer sells them, he finds his market in manufactures. Yarn, linen, coarse woollen stuffs – things whose raw materials had been within the reach of every peasant family, had been spun and woven by it for its own use – were now transformed into articles of manufacture, to which the country districts at once served for markets. The many scattered customers, whom stray artisans until now had found in the numerous small producers working on their own account, concentrate themselves now into one great market provided for by industrial capital.5 Thus, hand in hand with the expropriation of the self-supporting peasants, with their separation from their means of production, goes the destruction of rural domestic industry, the process of separation between manufacture and agriculture. And only the destruction of rural domestic industry can give the internal market of a country that extension and consistence which the capitalist mode of production requires. Still the manufacturing period, properly so called, does not succeed in carrying out this transformation radically and completely. It will be remembered that manufacture, properly so called, conquers but partially the domain of national production, and always rests on the handicrafts of the town and the domestic industry of the rural districts as its ultimate basis. If it destroys these in one form, in particular branches, at certain points, it calls them up again elsewhere, because it needs them for the preparation of raw material up to a certain point. It produces, therefore, a new class of small villagers who, while following the cultivation of the soil as an accessory calling, find their chief occupation in industrial labour, the products of which they sell to the manufacturers directly, or through the medium of merchants. This is one, though not the chief, cause of a phenomenon which, at first, puzzles the student of English history.6 From the last third of the 15th century he finds continually complaints, only interrupted at certain intervals, about the encroachment of capitalist farming in the country districts, and the progressive destruction of the peasantry. On the other hand, he always finds this peasantry turning up again, although in diminished number, and always under worse conditions. The chief reason is: England is at one time chiefly a cultivator of corn, at another chiefly a breeder of cattle, in alternate periods, and with these the extent of peasant cultivation fluctuates. Modern Industry alone, and finally, supplies, in machinery, the lasting basis of capitalistic agriculture, expropriates radically the enormous majority of the agricultural population, and completes the separation between agriculture and rural domestic industry, whose roots – spinning and weaving – it tears up.7 It therefore also, for the first time, conquers for industrial capital the entire home market.8

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Chapter 31: The Genesis of the Industrial Capitalist
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First published: in German in 1867, English edition first published in 1887; Source: First English edition of 1887 (4th German edition changes included as indicated) with some modernisation of spelling; Publisher: Progress Publishers, Moscow, USSR; Translated: Samuel Moore and Edward Aveling, edited by Frederick Engels; Transcribed: Zodiac, Hinrich Kuhls, Allan Thurrott, Bill McDorman, Bert Schultz and Martha Gimenez (1995-1996); Proofed: by Andy Blunden and Chris Clayton (2008), Mark Harris (2010), Dave Allinson (2015).
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