On interest, credit and capital∗

Abstract

On interest, credit and capital Laurence Harris This article examines the category of interest payments within the problematic of historical materialism. It examines the interest payments which occur under the capitalist mode of production on the basis of credit from capitalists to capitalists, from capitalists to workers, and from workers to capitalists. On the subject of capitalist to capitalist interest payments, the article examines the views of Marx on interest-bearing capital and demonstrates that Marx did consider this interest rate to be subject to determinate and analysable laws. These interest payments are transfers of surplus value as such. On the subject of worker to capitalist interest payments it is demonstrated that these are payments out of wage revenue which are appropriated as profit on merchants' capital rather than as profit on interest-bearing capital. Finally, capitalist to worker interest payments are identical with payments of wage revenue and, therefore, are for capitalists equivalent to the advance of variable capital. These results are established on the basis of the law of value and after considering the concept of value of labour power. In conclusion, the construction of data employed in empirical work is criticised.