Theory of Interest

In forging ‘’external” relations with landed property, capital agrees to cede part of surplus value to it in the various forms of ground-rent. This practice rationalises the principle that, in capitalist society, the owner of a property is entitled to a flow of periodic incomes. The same principle, once established, can be applied ‘’internally” to capital itself, which then regards itself as a ‘’property”, yielding a stream of interest (rather than rental) revenues. The adoption of this particular principle of distribution, however, involves a re-conceptualisation of capital by capital itself. Rather than viewing itself as value-augmenting motion operating in the production-sphere in which the technical diversity of use-values needs to be addressed, capital now returns to where it originated, namely, to the circulation-sphere. For, it is in the latter sphere that the diversity of use-values are meant to be subdued, attenuated and eventually overcome. Capital thus takes the final step towards surmounting use-value restrictions.