In order that the commodities may be measured according to the quantity of labour embodied in them—and the measure of the quantity of labour is time—the different kinds of labour contained in the different commodities must be reduced to uniform, simple labour, average labour, ordinary, unskilled labour. Only then can the amount of labour embodied in them be measured according to a common measure, according to time. The labour must be qualitatively equal so that its differences become merely quantitative, merely differences of magnitude. This reduction to simple, average labour is not, however, the only determinant of the quality of this labour to which as a unity the values of the commodities are reduced. That the quantity of labour embodied in a commodity is the quantity socially necessary for its production—the labour-time being thus necessary labour-time—is a definition which concerns only the magnitude of value. But the labour which constitutes the substance of value is not only uniform, simple, average labour; it is the labour of a private individual represented in a definite product. However, the product as value must be the embodiment of social labour and, as such, be directly convertible from one use-value into all others. (The particular use-value in which labour is directly represented is irrelevant so that it can be converted from one form into another.) Thus the labour of individuals has to be directly represented as its opposite, social labour; this transformed labour is, as its immediate opposite, abstract, general labour, which is therefore represented in a general equivalent, only by its alienation does individual labour manifest itself as its opposite. The commodity, however, must have this general expression before it is alienated. This necessity to express individual labour as general labour is equivalent to the necessity of expressing a commodity as money. The commodity receives this expression insofar as the money serves as a measure and expresses the value of the commodity in its price. It is only through sale, through its real transformation into money, that the commodity acquires its adequate expression as exchange-value. The first transformation is merely a theoretical process, the second is a real one. ||821|

Thus, in considering the existence of the commodity as money, it is not only necessary to emphasise that in money commodities acquire a definite measure of their value—since all commodities express their value in the use-value of the same commodity—but that they all become manifestations of social, abstract, general labour; and as such they all possess the same form, they all appear as the direct incarnation of social labour and as such they all act as social labour, that is to say, they can be directly exchanged for all other commodities in proportion to the size of their value; whereas in the hands of the people whose commodities have been transformed into money, they exist not as exchange-value in the form of a particular use-value, but as use-value (gold, for example) which merely represents exchange-value. A commodity may be sold either below or above its value. This is purely a matter of the magnitude of its value. But whenever a commodity is sold, transformed into money, its exchange-value acquires an independent existence, separate from its use-value. The commodity now exists only as a certain quantity of social labour-time, and it proves that it is such by being directly exchangeable for any commodity whatsoever and convertible (in proportion to its magnitude) into any use-value whatsoever. This point must not be overlooked in relation to money any more than the formal transformation undergone by the labour a commodity contains as its element of value. But an examination of money—of that absolute exchangeability which the commodity possesses as money, of its absolute effectiveness as exchange-value which has nothing to do with the magnitude of value—shows that it is not quantitatively, but qualitatively determined and that as a result of the very process through which the commodity itself passes, its exchange-value becomes independent, and is really represented as a separate aspect alongside its use-value as it is already nominally in its price.

This shows, therefore, that the “verbal observer” understands as little of the value and the nature of money as Bailey, since both regard the independent existence of value as a scholastic invention of economists. This independent existence becomes even more evident in capital, which, in one of its aspects, can be called value in process—and since value only exists independently in money, it can accordingly be called money in process, as it goes through a series of processes in which it preserves itself, departs from itself, and returns to itself increased in volume. It goes without saying that the paradox of reality is also reflected in paradoxes of speech which are at variance with common sense and with what vulgarians mean and believe they are talking of. The contradictions which arise from the fact that on the basis of commodity production the labour of the individual presents itself as general social labour, and the relations of people as relations between things and as things—these contradictions are innate in the subject-matter, not in its verbal expressions.