n oe Evolution of tons m : the Market Patternyf palit, ilar. religions or conor functions, oder the me cultural eve wh dd nt" We ned edly da more than inne). Economic atcha only an acestory trait of Pint to some ofthe more startling inplction of thee statement. ting coed group. The rene or absence of mares or money doesnot nest The market paren onthe other hands bing rsted ta penlar fet the economic system fa primitive sky this refutes the 3 spec natittion mel the market imate, tats why te ance of wich inefably ransorms « scety by cresting makes fe einomic ster, The itl importance of he eeomic itor endencytoscusn” sth only econo ut tht canbe corte he existence of sity preclade any other esl For ance the ec inferred from ther absenee in epost tothe isn oriniati Inotines and conferring spec status socety mute sad sich he reasons are simple. Markets are not iasitutions function nner atta hss to funtion vn rs. tog mainly within an economy, bu witout They ae meting pli isis tbe meaning ofthe falar aertion that mask xnnomy stlong-titance wade. Local markets proper are of litle sont The tp which makes aed narkts into market economy Seatally competitive, and consequently there nether ene but rele market iat as eglting market indeed casi. Th lite pressure to crest error trae, a so-ale iatrnl ora Fnetenth centuryvwhether ling the facta the apex ofc ‘ional market. Everyone of thee aston strikes a some exon tionordplerngita cancerous rot —nstely imagine hatch acl bed ssumpion ofthe casal economist he bdevlopment was the natural outcome of the spreiding of markets artifical stimulants administered tote ody sacl in onder to rset loca market a well af dvisen flab: and infeed, ally, he "Siuation which was ceed by the no lee artic phenomenon of nccesnyof trade, eventual of frig trade, incladig een log hetmachine. The limited and unexpanding nar ofthe market pat Aitance trae. nthe light oar present knowledge we should soe Marte ate not fund eve‘tchangs which appear to us ters rade In oking rte origins ‘of trade our starting plot shoul be the obtaining of goods fom a his kind frequstoning or weasure hunting scl r mech akin chery and piracy sto wh we are sed fo ep a tae; at the tte: or trough ipo arengement tn the Kal nga with visting partes ofthe ange of Wet Afi, or wth the Kp all he guests True, sch visits ae not accidental, bitin tet thers geuine trading ourneys the exchange of goods, however cod uder te pus of eal presente and ull cen have frgne external tad eae, such rade dl a ec ‘nay slit py eae as fo-adednes and even when implies oh tis usally organized on te pence of recprocy not tht bar The transition to pec barter an be traced in two directions, aly in that trier andin that of peace, Arb ex ranges ths type of relationship though motel peaceful any Intec noe wih esieamepec Mane stapes allow mas be markets or ternal markt They dfern change of Eoplwooles aint Portuese wine wav insance te ie Thus beth PMetliadcand ocala ure aie gengrphia dine the ne being confined tothe godt whichcanntovercome tthe thro sch sv ascan Trade of is types righ describ a complemen oc echange between town ae countryside foreign tae be ih zones are aed on hs principle Such rade Both external and al ade intra rad senalhompetie part ro erplemenary exchanges nce Nez) macklager numberof exchange in which similar g “iret sources are fered in competion with one anche. cor Ings only withthe emergence of intemal or national trade does competion tend tobe acetal aa general principle of tang function are als tnt in their origin, We hae desk withthe be innings ofexternal trae. Markets developed naturally ut oft whee he caer ad to halt a at ods, seaports riveresds or whe the ues of wo lad expeditions nt. "Toet developed th laces of ranschipment* The sor flowering ofthe famous ais of Europe was another instances whihlong-dstance radefairs and staples disappeared again with an abruptess sconce ‘even whete the towns were founded on the sts of external markets, ‘helocal marks often remained separate in ep staple was the parent of itera or eationl markets, Where should we seek forte origin? TR might seem natural o assume that given individual acts of Jocal markets, and that such markets, once i existence, woud just 25 rturlly lead to the establishment of internal or nana makes nor the othe ithe ce lndvidl at tater exchangethisis the ae fact do pot a ull ote ‘sublshment of makes in societies where ther principles fe omic behavior preva Such ets are common in alc all ype Primitive society, but they are considered as incidental since they do 2 provide forthe neceare of if In the vast ancient systems redtbation sets barter wells local makes were usa, bat nomore hana sbordinat tra. The ame etre whee ety lly embedded in og range eaions impping rust and confidence a stuation which tends t bla the bilateral character ofthe transaction. The limiting factors arise from ll points the sociological compass custom and lav eigon nd magic equally contribute othe res which ove cof {xchange in rope fo persons and object time and cca, Aa Tul, he who batters nsely etesintoa ready-made typeof ian action in whic bot the {Bren Un the Sects and thir equllet amount re ‘ofthe Tkopat denotes such traditional uvalent a partofrecprcal exchange That which appeared ste essential ature ofeachange a egheeth-centary though the Untriic element of bargin, and the higling 0 ex sumed motive of trl nds ut lit cope inthe actual ansae tin: asl a this motive undefies the procedare its som lowed to rie to the wari. csv ofthe The citomary wy tobchaves rahe o give ven tothe opie motivation The giver ay simply drop the object on the gruel end roation of the Market Pattern 65) ‘the recaiver wil pretend to pick twp acento even eve tone of is hangeeom odo so for hi. Nothing teary to accepted behavior than to have a good neath counter prteceved Ase ave every resonto bebe tht this sophinctd attdeis ol the outcome ofa genain lack of nerest inthe material Se ofthe transition, we might describe he etiguct 0 2 evnteracting development designed tint the scape ofthe st. Ted, onthe evidence aval t would be rh toast ha local markets ever develope from individual acts of bate, Obscuse asthebeginningsoflocl markets se this mach can be asterted tat from the art this instution was surrounded bya umber of sf guurds daignd io protect the pevling economic organization of Society fom nerfrene on the prt of market practices. The peace ofthe market wus secured at the pice of rituals and ceremonies ‘which ericedits scope whilensuring ite silty to fanion within the gen narow limits, The mot signe res of mathe —the birth af towas and uhan ciation wos in eft the out o ‘paradoxical development. Town, nsf a they sprang fom ma sets, werenatoniythepotctorsothse nacht but als the means of pevetig entosching a the prevailing economic organiaton ofc. The two vanngs ofthe word "enti express erhapr best ths double faction ofthe towne, In respect tothe males which they bat en om from expanding int the countryside and thus ‘eloped ad prevented from deep thar was srroundelby taboos devised to ee thistype fh ‘man eltonship rom busing the faction ofthe econo organi {ation proper the diiptine of the market was even sce Here sab ‘example rom the Chaga country: “The market rast be ult vie. ted on musket days If any osurrence shoul preven the holding ofthemarket on one or more day business ant be eur unt ‘he markt plac as ben purified... Every injury caring on he marke: place andinvlvngthe shedding of blod neces imme diate expiation. From thit moment na woman ws allowed t le the market pice and no goods might be touched they had tobe leaned blore they could be cared way and ued for food, AL ‘he ery lesa oat adobe arf a once A more expensive an ‘more serious expaton was nce fa woman bores cildo hada ‘miscarriage onthe mare plc. case mich animal wes nee tssary Inadton to ths, the homestead ofthe hie ad fo epsaciid fa mich. Althe wore in the country wee th spenkl dirty district’ Rls sch a these wou ot make the sreaing of market air ud plc. Gatoringsfthiskind ar ot nly ly general in prim we soit, but remain almost unchanged right op to the mie of he ightenth century inthe most advanced cous of Wet Eu ope They aan adjunct oflcl existence and fer but ite whether hey form ar of Central African tif of of Merovingian France ors Sots ilageof Adam Smith tie. But what re the village is leo toe ofthe town. Loeal markets ae seta elgborhod makes, and, hog important to tele the con any sgn of ecing the prevaling eo omic stem tote patter, They are not starting pons ofin Tetra aden Wester Europe was actually created theater vestio othe stat Right up tothe time ofthe Commercial Revo Iation what may appear to sas national trade was mo atonal, bt ‘municipal The Hage were not German merchants they were a or portion of rang lars hing fom a number af North Sea and Bale towns, Far fom nationalizing” German economic if, the apse dlibertly ci ofthe hinterland from trade, The trade of At werp oc Hamburg Vez or Lyons wat in no way Ditch oe Geran, Tan or French Landon wat no exception: was ete “Engle™ as Lucbeck was “German” The trade map of Europe in this period ‘hod rg show ony towns and lave blank the countyide— Imghtas wll ent existed afar ex organized trade wa concerned Spelled nation were merely pla wie and ery lone one tha, consting ectnorieallyof innumerable sale and bigger el suficing households an insignificant local markets inthe elagrs Trade ws limited to organized townships which arid ton ether locally a neighborhood trade ora lang distance rade—the 0 were tryst, and neither was allowed to infant the Countryside diriminateh Sich pennanen seerancs flea tad ndlong-ditance trade oy vithin the organization ofthe town st come ane shock o theevoltonst, with whom things bays em so cal to gro ito lone another. And yet theca ct forms the hey tothe soi is tory of arban Iie in Wester Europe I strongly ends to support aut serio in rexpct othe origin of mkts which we fered rm ten loa an lang distance wade might hive seed o0 ge cial ted us the somewhat surprising conchson tat ether Tong distance ‘of madera ines~thas appar leaving a aerate but to frm for an explanation to thy us ex machine of ate intervention. We wil sce presetly tit a Ts tespect alo recent imesigtions bear enor loc rad asthe pret ofthe nema trade ‘of urban ciation a twas shaped by the pula severance of cand lng distance tad wishin the confines ofthe medal vn This severance was, nde the ea ofthe institton of med cal uch centres" The town was an oration ofthe burgess Theyalone had ight of iienship and onthe diction btysen the barges andthe nn burges the system ested Neither the peasants the country or the mecha ete owns wee af cours, urges But whe the mulltary and pl iano the tow, sade t posable to deal with the postant of the sreunding in (Consequently the burgesses ound themselves in an entirely dierent postion in epect to loal wade ad long distance trade ‘As to fod supplies, regulation invelved the pitino sch methods enforced peblistyof transactions and eckson of i ‘lene, oer to contol rae and provi agin high ples. Bt ‘ch regulation was fete only in eect t trade eared on be tween the town and item surrounding In eget to og Alstance ade the postion was enti diferent Spices salted, or twine had tobe tamoported rom lng distance an wee ths he oman of the feign merchant and his capitalistic wholesale ade ‘matods This type of trade escape cl elation a al tht covk bedone was to ecude a fs pose from he local are The Complete prohbtion af reais by foreign merchants was designed to achieve this end, The more the volume of capitalistic wholesale[6s] The Grea Tansfor trae revs the more strtly was excision fr the lac marke sane tade ct even depo, inthis cse the whole orgenizaton afar ofthe raf gud jn which indus peoduction was org ee On the oc et, rodscton was regulate ac ees ofthe podces tht restricting production oa emaners tie level This principle woud naturally ot ppt expe the interests ofthe reduces set no iis production. Conse ‘gen hil rae was strict ruled, production fr expo Stas onl oma onl by corporations of cra The domi ng export industry ofthe age te lth trae, was actually organized tenth capitalise bass of wage abo. ‘An increasingly rt separation ola tad rom export tad vas the action urban ie othe thet of mob capa to di {ep the sitions of the twa. The typical medical town dd yt rad the dans by riging the gap betwen the cont Table cal make rae bu, the contrary me the perl squarely by enforcing with the utmost rigor tat policy af excision and protection which was the rational of ts erstence athe vagaries ofan uncontaabe lang deta raed every posible bs le tothe formation of that national ov neal marks for which te Capitalist wholesaler was pening. By maintaining the principle of tive lca trade and an eqallnoncompetiive long ido rm own to toe, the burgess hampered Aliance ade ball meansat thelr disporl th nclsion athe countryside it he ‘Clmpassoftrade andthe opening up of indiscriminate rade between the towns ofthe county ws tis desopment which forced the terra al to theft a he instrament ofthe “atonlizaton” [the market ad the cer of iiernal commie Delbrate action ofthese a thee ad siteerth ents ses fisted the mera ste on the Beresy protectionist towns fd principalities, Mercia destroyed the autwoes particule ism local and ntrmansipal trading by breaking dows the bare ‘Sursing tate tye aoncnptne cone ts Clearing the way ora oatinal markt whic increasingly pore the Bro tinction between town and count he mcrae eee an in eft & response to many chal- Ages Puan te was nw cretion cle oh bytheConmeral Reeton whch had shied he cee gv tithe Western word rome Miran othe i coud nth compl the thr pepe tae ong for commerce and tae, In external oc the sting sp ‘ofsonereign power waste need ofthe day scoring; mereatst sate inven te manhaling ofthe rsnares the whole tional tty othe purposes of power a oeign alts ineral Puls, unifeation ofthe countries storied by fal and mani pul particulriam was the necessary byproduct of sich endeavour i i pculaly ‘tale forthe development commerce rally the administrate nique undying the conomle plicyof the cea government ws saplied by the extension of the trains! muni stem {othe larger ester af the tate. In Franc, where the craft gills tended to become state organs, the guild system was uniformly fntended ove the whole errory ofthe counts England, where he day of the walled rns had weakened that pate atl dhe tide was industrialized wit the supervison ofthe gull, terior ofthe nation sol became the dannating form of economic ‘ctv Ths also acount forthe offen pling domestic rade pal ‘State intervention, which had feed trade fom the confines of ‘the piloed to, was acl to dew two cel connect hngers which the town had sscesflly re, namely nonopeyand Eemptiion Tht competition mt uae ed to moray wa ‘more han later as oft concerned the necessaries of ie and ts ‘aly waned into aperlto the community All-ound regulation of ‘nti ie onythistme ons national no more ere nip scale was the given emedy. What othe modern mid may ‘ay appear ara sorlghtedexcslon of competion wa in eat the mean oftafoguardingthe functionos buyers or sles in the sontlons. For any temporary intrusion of rake most dest the ance and dipping buyer ol withthe eu that here il eae to fucton The formes purveyoes wl cease to fe thir goods a hey cannot be sae tht ‘ he monapalt Tole dei the scp wll become a prey the mono : ‘Sie dangers wre set nthe demand se, wherein {aight be ulowed bys monopoly of deand With every ep that theta fhe etter nho-scope the mae but oer tl mares reer, ern degre compen, st whch peal” Th slsucing bold ofthe eset boring for his subsistence emained the bod bass ofthe economic sytem which was Being integrated int age national nts thoagh the or Imation ofthe internal nuke, This atonal mike now tookis place "engi and pry overapping the local an foreign markt, Agr Princip of buseholling stil dominant nthe countryie This oncades our synpsiof the history ofthe marke pt the tune of th Industral Rvolton. The net sage in mankind hie tory brought a wekows an tempt setup one big sl regulating tmatket hee was nodingn eran, this dtinctve policy af the Westra nation-state, to presage sich unique developmen. The feng” af ad performed by meeantisn merely Heated trade from particulars, but the sme ime extended the cope of eg ton The econ mn was atbered in eneal aca el tine mackts were merely an accestory feature ofan institutional ‘etngcontelled and vgulted more than ever by soil autho. ‘The Self Regulating Market and the Fictitious Commodities: Labor, Land, and Money ‘his cursory outline of he ecanmic sytem and markt ken ‘spat shows that aver belone our own ime wet markets il sen, nd woe psp bear fond to be compat The pce of barre chug ‘ich underisthis pate, eve no deny ean te vrs aborbed inte he mercantile system, they there unde the cata fv en line administration which etre auarhy bah the schol peasantry nd in espeet national ile Regulation and ma ety in fet, grewupfogetber The seeping market was ut Known: indeed the emergence ofthe ide of self epuation was ‘complete reversal ofthe trend of development sin he ight of hse nv undeying amare eon fact thatthe extvrdinary asamp my can lone ely compere “A markt econoty ian econ stem conte, regulted and directed by rare prices; oni the proton and dint ion of goods serrated this sel repuliting mechanism. Aa econ ‘omy ofthis kind derives from the enpectaon that human being martin which the supply of goods incding service) ava ‘a definite price will egal he demand a that price It same the presence of mney. which Funcons ar purchasing over inthe ands of is owners. Preducion wl then be contlled by pric fo the profits of those who direc production wil depend upon thems the istibtin ofthe goods als wil depend upon pies, fe pie fem comes, and itis wth the help of these Incomes that the pods peo. dhced ae ditt amassumption order inthe production and distribution of gods is Seltsegustion inl that al prodeton fr salon the markt igh tte re ns alvasindad se of money and forms te incre of hoi Wien the pos onto provide em ste re for he ue of nd an forms the Income ofthose who supply gitar the prise forthe ws of bor power and for the income of hos who sl commodity pie incomes the wh sl heir espe tervice the income cll profiing actually the diference be tween two st of prices, the price of the gs produced and thei Cost Les the pice ofthe poods necessary to produce thems I thee ooaitons are flied incomes derive from sles onthe marl, snd incomes wl bust suit to buy llth gonde produced ‘fur group o assumptions flows in respect theta and its picy. Nothing mst be allowed to inhibit the formation of mar ‘hugh sl Neder mat tere be any interference with the duet ret prices to changed markt conditions whether te prices ate hose of gods, bor, land or money. Hence there must nt only be turks forall cements of industry, but no measure or policy mst te countenanced that would infuse the action of these markets Netter pice ax supply, or demand st bee or regulated only such polices and meses ae in onder which help o ens the st To eae uly wha ctl system and the rational markets which tdi so mich 0 el Unde prtof the social erasiation taf mone hd et arly developed Tito «major element of industry), Land;-he pivotal cement in the feo, asthe sis ofthe military odin ainsi and lism andthe guild system landand ber formed The Self Regulating Markt andthe Petitions Commodities (73 ifs, to whom and under what esrtons; wht the righ’ property estilo what uss smetype oflind might puta thee gues tions were emored from the egunization of buying a selling and The sane was rae ofthe ongnization of bor Under the gud Does and circumrtances of productive activites were embedded inthe general onizaton of sc. The relations of master, are ‘man, and apprentice he terms ofthe caf the numberof oppretces the wages ofthe workers were all elated bythe cistom and rule the guidand the town, Whi the mercantile stem did was creo ‘unl these conditions ther though safe asin glad, or huh ‘he Ybatonlzation” ofthe gus asin Frac As fo lan, eal status was abolished only insofar a was linked wth provincial Privileges for terest nd remained eta commer, in England {sin France, Upto theme ofthe Great Revltion of 78 landed ‘sate remained the ouree of scl prvi in France and ven fe ths tine in England Cammon Law on and wis etal medieval Mercanilish, with all tendency toward commeriistion, never tack the safeguards which protected thse two bai ements of nd lan—from becoming the objet f com ‘mee Tn England the “satonlination” of lo leptin thr ich the State of Aries) andthe Poor La emo aoe from the danger zoe, and the s-enowseplicy ofthe Tides an cacy Stat ws one onsstat pote against the pial ofthe ‘nfl ue oflanded property . That means however emphatic laid on commer lalation 83 natinal ply, thought of markets ina wey eat ‘ontary to sare economy, is bert shown by Hs vast extension af State inerverion i indy. On this pit hese wasn flee between mercailsis and feudal, tween crowned planners and ‘ested interest, betwen centaliting burenirate and conserva Particulaists, They disagreed only onthe methods of egulation ful towns and proviner pple othe fre of cstom and tee io wlth ne st atory fred tite and rian Bc the wee al equally avrse 1 the de of cmrclzing labor sndlandthe pcm = x mateleonony, Cri gladelay The Great da prvieps were abolished in France only in aon England the ‘Sst of Articers ws repealed onlin 8-14. the Elabethan Poor Lavin Not bev the lst decade othe eighteenth century was in ether country, the eablsment of fee labor make even di sed andthe eof he sel regulition economic fe wi ey ‘beyond the hviaon of thea. The mercantile concer with he develpnent of the resource the county indi fl em loyment, through rae and commerce the traditional ngeization fflnd and ibor he tok ar grante. He was ith expect sa toned rom modern concepts he was in the eal of plies where his el nthe abate powers ofa enlightened espe was em ered by no intimations of democracy. And jut asthe transition to 2 democrat tem and representatineplits involved compete ‘ever ofthe trend ofthe ne the chang fom regulated to selE segulting maria the end of the eighenth century epost Complete transformation nthe structure of wc A slérgulting market demands nig les than the insti ‘inal sprain. soit nto an economic and pital phere Sch a dhotomy i net, mere the restatement fom the oi of view of socty aa whol, ofthe existence of se egulting a tet right be agi that the sepurstents ofthe to spheres sis inevery ype of sity all times Shan infec, however would be bed on afalacy Truc om scity can exist without a sytem of ‘ome kind which ensures order nthe production andl distin of pos. Bat that doesnot imply the existence of parte economic i $tetions normaly the economic onder imeey function ofthe Soci rer Neither under tbl nor under el or under mesa tle conditions wa thee as we saw a separate economic system in soci Ningtenth-centty soley, in whith economic ati Such a insttationl pater cold ot have Fon society was somehow subordinate tis requirements A marke economy cn exit onl ia mate oct. We reached this con ‘Son on neal grounds in oar snayisof the marke pattern, Ween comprise all elements of industry, including labor, land, nd money. (tne market economy money als ian ssl ment instal Mendis incon inthe art mechani as a we illo The Self Regulating Markt andthe Ft ws Com adies [75 reachinginstatonl consequence) Rutland and are no other dan the human being themeles of which every soley consis andthe natural surroundings in which text. To ncade them in he markt mechanism means to subordinate the rubtanceof society WELTER int pion fo develop ina more concrete form the instutonl ature ofa markt economy, and the peso which it inoles, We wll fist, describe the methods by which the ‘market mechanism tenable to conta and direct the actual ele mens of india ie scondy, we wl ty to gauge the nature of the ects of sucha mechanism onthe Tei with the hep f the commodiy concep tha the mechs ty which ubjcted to ofthe market gare the varios cement of nds, Com minis ae here empirical find ae chet produc forsale tho mack markets agin, are empirical defined stl contacts Tete buyer and slr. According, eer element of ndty i regarded having been product rsa a then aa hen oly wl I beset to the soply-and demand mechani interacting ith ce In practic this ans that there mos be markets for every ‘ent of industry hat i these ats ah ol thee lemons snp ‘ied into a supply anda demand group ad that cach erent as «pice which interacts wth demand and supply Thee marets end thy are mares ne intescrneced and form One ig Marke. he croc pot is ths bor, nad money ae essential ee ments of indastry they also must be oepaized in markets in at these ahs form an abso vital pat of the economic system Butaboe ld nd money are obvious sommodiis the posts Ine tht anything tits bought ada st hve Bee raced fo salisemphatially unten ard to then ther words accord ingtotheempiral denton of comma they ae not coed ‘hes Labor on another name fra una activity which gow wth le which tarot proce or sal bt for ety di Ferent eons, nr on tht activity be detached from the est fi, ‘estoredormatiied(and only another name for ace which ot produce by nan; actual mone als merely token of pr ‘hosing power which, as a ale nt prodced a al bt somes ntobring through the mechanism of banking ost nance, Nove of hem is produce for sil. The cmnmdity description af labo, nd and money sential tions ‘Neverless is wih the ep of this fiction thatthe actual ma ket for labo kd and money ave orate the ar beng actual boughtand sold the market their demand nd spp are real mag tes and any mesure or oli that would it the frmaton ‘sem The commodity fiction, therefore supplies itl ogenizing Princip in eardto the whole of ait letingslmostall is iost ‘Stns in the most varied way namely the pincipaccording to which no arrangement or behavior shouldbe allowed to ext that night ree dn actual functioning of the market mechanism on the lines ofthe corumodity Bon tolabo Ind, and noney soc x pstlte cannot be upheld Tollow the markt mechais to be sole deta ofthe fae human beings and thse ntl environment ined ven of theamount and we of purchasing power would result the deol tion of rocket Forte alleged commodity “bor power” cant be shoved abou, used indicrimintely, or een le unused, without sfectng seo the human individual who happens tobe the Beate this pear commodity i posing ofa mans a 5 ofthe physi, pychelogica snd moral entity “man” atached otha tg Robbed of the potectine ul cently, di overing of clr institutions, human Beings would perish om the effets af social exposure; they mould dew the victims of cute socal dseation through vie, perversion, crime and starvation, ate would he rediced to ements, neigh scape dele vers polsted, military sft jeopardized. the power to produc food andra mater destroyed. Finally the market a purchasing power would periodically liquidate bush see and Aisastout to busines a Hoods and droughts In peimve woe UUndoubedly labor nd an money markets ae essential oa ma ket economy, But a society coud sand the feo uch a syste ferade tions even for he shortest stich of tine alesis aman The Self Regulating Maret a the itis Com nd natural substance a wells ts busines tected agi the ravages ofthis sataicmil he extreme atic of mare conor i rooted nthe fact thatthe proces af prodaction itll is ee ergnized Inthe form of buying and sling No other way of organizing prodocton forthe market is possible in a commercial society" Daring the ate Mile Agerindutial production pss, and carried om under ther diac supervision in the home action was organized merchants and was ot Imaal by the merchant capital who contd the proces of duction aa prey commercial enterprise twa then that nds tation i dyad iat ker he well athe gua ofthe demand nd be could ouch leo othe supplies which, incidentally consisted rely of wool won, Sometimes, the oom ae the kiting frames us bythe cote i sey. spp ale ws the cbtger who mas worst it ori employment was gone forthe tine: But no expense pl volved and the merchant incurred no srios risk i shoulderng the respons far production. For centuries thisystem pew n power tofscop alin acount Eg he ol ins onl staple, covered lag sectors the sountry cher production eas ccganized bythe other He who Baugh sri sold incidentally, Provided fo pradction~no separate motive ws eguied. The sion of god invived ekher he rioting aide of muta 2 nor he concer ofthe householder or those whove needs are left tohis care aoe the craftsman pride in the exercise of heres nor {hess of pbc prise~noting but the plan naive of gala to familie othe man whe prfeon is buying and seling Up to "he end ofthe eighteenth century, industrial padacion in Wester AS lng asthe machine was an expensive nd unspecife ts there wasn tinge a ths positon, The mer fact thatthe cote oul produce larger amounts than before within the same time night induce him owe machines o increase eating but hie athe cheap machinery was owned by the marker or by the rmerhant mae sre ference in he sci poston af he patie alos crsinly made a diference in he earings ofthe ork ve ut the greater diticuty continued tobe onthe seo ape ‘fra mater, wich was sometimes unvoiablyinterrpted, Bt ‘vas nat aubtanal Iwas ot the coming of the machine as such bt te vention of daborate and therfore specie machinery and pl whic completely changed the relationship ofthe merchant vo pro ‘etion.Althogh te new produce organization was introduced by the merchant—a fic which determined he wile couse of the teunformation—the us of elaborate machinery and plant ineled the development ofthe factory sytem and therewith a devise shift inthe relative impocance of commerce and industry ia favor ofthe Tawar indurrialpodstion cu o be an acest of commer rgunize by the merchants bing and sling props: bow inved longterm investment with corespnding rhs, Unless the But the more complicated industrial production became, the ‘more numerous were the elements of industry the supply of which had to be safeguarded. Tare of thes, of couse, were of outstanding importance: labo, and, ad mney. Ina commercial soity thet supply could be organizodin one way only being made alle for purchase. Hence, they would hive tobe organize fe se on the rmarketin ether words as comme, The extension ofthe ma. etmechanisn tthe elennts finds vas the ine consequence ofthe ftredaction system ina commercial soriety. The elements of indusy ba ob This was synonymous with the demand for & marke system, ‘We know thet pros are ensured under such a sytem only Isle regulon is seleguatded through intependeat compete ma kets As the development of the factory tem a ben onan’ ss edies 179 art ofa proces of buying and sling. therefore lor, ln, and money had be transformed int commode in ode to ecy pro action going They cold ofcourse, at be eal transformed to commodities as actually they were ot produced fr salon the me et Hat the eton af thet beng proce Deca the rganizng incl af oct OF the the ne sara out abo the techs ter i for human being, ers bak iM ‘hange conurrenty withthe oraniation ofthe mae ptm B ‘stbeorganizationoflbor inl net wor or theese he comiman peopl this means thatthe dewloent stem woul be acompanid by a changin the rpnizaton oa tty ie Al along the ling, huran soy had Bore a accessory ‘We ec oa parallel betwen the ravages of he encase in Ba ish history andthe soil atastophe whic allowed the Indust Revoition, provements we sid are, ule bought a the pce ofsocialdication, Ifthe rateo ioeaton to grea the Hy mus succumb inthe proces The Tors and xl Stars seed England fom the at of Spin by repulitig the course of change so ht it became eatble and eft could be cnaie int ls de sMructive stems, But nothing sted the common ppl of England theimpact of he Industrial Revolution, A blind Ee a sponta eos progress had ken ho of pe less, and withthe na ism of etarans heros enlightened pres forward Sorbus ted change in sce. Te ets th ves othe po pe wee afl beyond description. Indeed, human scety would have Been ante bt for protective counter moves whch blantd the on of this destructine mechanism. ‘Sta Hoe nthe aieteenth entry mas thes the eat of a double movement the extension fhe markt ogization in spec spect fttausoaes. Whit onthe ot and markets spre allover the ace ofthe glodeand the amount of goods involved grew to ube eae dimension onthe othr hada network of measures np ies was interated into owerflinsittions designed to chek the action ofthe markt relative to abor lind nd money, While theo. janizton of word commodity markets, wo pal market adSpeenhamland, 1795 € ing mae ino mete sppenage ofthe market. the Industrial Reo mathe in England Inthe end the ie bor markt, nite be nha mete the ant eee ech ‘som, they nevertheless intefeed with i seegultion and i nthe brad