is estimated upon the basis of its exchange value when it finally reaches its economic goal.
In this process of circulation the surplus value contained in the product, as far as the persons interested in its division are concerned, is realized by piecemeal. Each party concerned in the production and circulation of the commodity until it fulfills its social mission gets his share of the surplus value therein contained when it leaves his hands, on a sale by him, and the purchase price which he receives represents the "necessary" part of the value of the commodity together with the share of the surplus value thereof to which he and those who preceded him in the process are entitled. In this way the surplus product contained in a commodity when it is produced is gradually converted into surplus value as it "circulates" along, and the surplus value is taken up gradually as it is being realized, share by share, along its course. The division of the surplus value takes place in the circulation process, and expresses itself in the different prices at which the commodity is sold at the different stages of this process.
These different prices at which a commodity is sold at different stages of the circulation process seemed to us inexplicable before, and vexed us not a little. But they will be readily understood when we know that the sharing up of the surplus value takes place in this process. As each stage of the process is passed a share of the surplus value is realized and is added to the price. When the exchange value of a commodity is first realized, when the manufacturer sells it, it is only that part of its exchange value that is realized and is expressed in the price which the manufacturer obtains for it, which represents the "necessary" value of the commodity and that part of its surplus value which the manufacturer receives as his profit. The merchant pays his price to the manufacturer and enters into the transaction because the full surplus value contained in the commodity has not yet been realized and he expects to realize a further share thereof for his own benefit upon a
