CB: In Vol. I of _Capital_, Marx seems to find the origin of finance
capital in the establishment of the national debt: He coins the term
"bankocracy" and refers to financiers:

http://www.marxists.org/archive/marx/works/1867-c1/ch31.htm

The public debt becomes one of the most powerful levers of primitive
accumulation. As with the stroke of an enchanter’s wand, it endows
barren money with the power of breeding and thus turns it into
capital, without the necessity of its exposing itself to the troubles
and risks inseparable from its employment in industry or even in
usury. The state creditors actually give nothing away, for the sum
lent is transformed into public bonds, easily negotiable, which go on
functioning in their hands just as so much hard cash would. But
further, apart from the class of lazy annuitants thus created, and
from the improvised wealth of the financiers, middlemen between the
government and the nation – as also apart from the tax-farmers,
merchants, private manufacturers, to whom a good part of every
national loan renders the service of a capital fallen from heaven –
the national debt has given rise to joint-stock companies, to dealings
in negotiable effects of all kinds, and to agiotage, in a word to
stock-exchange gambling and the modern bankocracy.



From: Carrol Cox <[email protected]>


On 7/22/2011 1:34 PM, Doug Henwood wrote:

On Jul 22, 2011, at 2:24 PM, Sabri Oncu wrote:

Good points. About the second, I blame Marx a bit: He is very difficult
to read and writes too long, at least, to my taste. Maybe some Marxists
also feel that way so that they get stuck in the first volume of
capital. If they keep reading the remaining volumes they may see that
Marx did not view finance secondary.

That's for sure. There's some great stuff on finance in Capital vol. 3.
TSV and the Grundrisse too.

Doug

I think it is in a review of the new German edition of Vol 3, in HM
several years ago before my eyesight collapsed: the reviewer suggested
that it wasn't just ill  health that prevented Marx from completing
Capital. He had decided he needed to know more about finance, and was
beginning a study of the American Stock Exchange. I never read it
carefully and by the time I got back to it my eyes were gone. It looked
interesting, however.

Carrol
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