more general becomes production for exchange.
This leads naturally to the appearance of a new trade; buying and selling becomes a business. Those engaged in it make their living by selling dearer than they buy. This does not mean that they control prices absolutely. The price of a commodity depends finally on its exchange value. The value of a commodity, however, is determined by the amount of labor generally required to produce it. The price of a commodity, nevertheless, seldom coincides exactly with its value; it is determined by the conditions of the market more than by the conditions of production—primarily by the relation of supply and demand.
The farmer or craftsman buys for consumption, the tradesman buys to sell. Now money used for this latter purpose is capital. One cannot say of any commodity or sum of money that by its very nature it is capital. That depends on the use to which it is put. The tobacco a merchant buys to sell is capital; that which he buys to smoke is not.
The original form of capital is merchant's capital. Almost equally old is interest-bearing capital, the profits of which are in the form of interest. As soon as these forms of capital have been developed, private property becomes something quite different from what it was in the beginning. Defenders of the present system try to distract attention from this aspect of property by talking constantly of the forms necessary to the beginnings of society. They attempt to prevent our seeing any difference between the ownership of
