Very little happens in this chapter, which is composed almost entirely of quotations from parliamentary committee proceedings.
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Marx repeats that the development of credit affects an economy in terms of the quantity of money in circulation (i.e. acting as means of purchase); the quantity of money in circulation in turn being a function of its quantity on the one hand and its velocity of movement on the other. ‘The speed with which […] a note circulates […] is mediated by the speed with which it returns time after time to someone or other […].’ Credit effects an increase in the velocity of money.
[I]f A […] buys from B, B from C, C from D, D from E, and E from F, […] its [i.e. the sum of money in question] transition from one hand to the other is mediated simply by actual purchases and sales. But if B deposits the money received in payment from A with his banker, who passes it to C in discounting a bill of exchange, C buying from D, D depositing it with his banker and the latter lending it to E, who buys from F, then even its velocity as a mere means of circulation (means of purchase) is mediated by several credit operations: B’s depositing with his banker and the latter’s discounting for C, D’s depositing with his banker and the latter’s discounting for E; four credit operations in all. Without these credit operations, the same piece of money would not have performed five purchases successively in a given period of time. The fact that it changed hands without the mediation of actual purchase and sale – as a deposit and by discounting – means that its change of hands in the series of real transactions is accelerated.
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