Takahisa Oishi
Professor of Economics
Takushoku University
Tokyo, Japan
An Overview of Marx-Studies in Japan
Many Marxist economists in Japan still believe that 
Marx's early writings, i.e. those preceding The German 
Ideology  (manuscripts of 1845-46),  are directed towards 
'philosophy' or 'thought', and that this orientation 
was superseded through the ''self-clarification' recorded 
there. They portray the 'early Marx ' as essentially 
a 'philosopher' and the 'late Marx' as an 'economist'. 
They take the relationship of The German Ideology  
to Capital  (first published 1867) to be similar to 
the relationship between Adam Smith's The Theory of 
Moral Sentiments  and his The Wealth of Nations. 
      Wataru Hiromatsu conceptualised this 'rupture' 
between the early and the late Marx as a development 
'from the theory of alienation to the theory of reification', 
 and this view is widely supported in Japan. This 'rupture" 
is also conceived by some economists as a development 
'from the negation of Ricardo's theory of value to 
its acceptance'.  For example, Yoshiki Yoshizawa writes 
that the early Marx did not understand the terms of 
the classical labour theory of value and rejected it 
until The Poverty of Philosophy  (first published 1847). 
Others say that the theory of alienation in the Economic 
Philosophical Manuscripts of 1844 (hereafter EPM) required 
Marx to reject the classical labour theory of value 
(Kiyoshi Matsui & Kyuzo Asobe). But some scholars 
within this group do admit a consistency between the 
theory of alienation and Marx's theory of value, they 
argue that the theory of alienation represents a philosophy 
underlying the labour theory of value (Shiro Sugihara 
& Yoshihiko Uchida).
     Despite the discovery of the Grundrisse (manuscripts 
of 1857-8),  which represent a link between EPM and 
Capital,  a few researchers insist that there is a 
  'rupture' between the Manuscripts of 1861-63  and 
Capital,  because the term 'alienation' can be found 
even as late as the early 1860s (Wataru Hiromatsu, 
Keizo Hayasaka). Hiroshi Nakagawa,  whose view increased 
in popularity after N.I. Lapin's article, denies that 
there is a theoretical continuity between the early 
and the late Marx by claiming that his early economic 
theory exhibits a  lack of unity between the following 
two analyses: the capital-labour relation and the commodity-money 
relation.  Nakagawa presumes that Marx wrote EPM in 
the following order: 
  EPM "First Manuscript: Former Part",  -> 
EPM "First Manuscript: 
Latter Part" (analysis of civil society from the 
standpoint of the capital-labour relation,  without 
analysis from the standpoint of the commodity-money 
relation: rejection of Ricardo's labour theory of value) 
 -> "Notes on James Mill" (analysis of 
civil society from the standpoint of the commodity-money 
relation, without analysis from the standpoint of the 
capital-labour relation) -> EPM "Second Manuscript: 
Missing Part"  -> EPM  "Second Manuscript: 
 Extant Part" -> EPM "Third Manuscript".
        Nakagawa asserts that it was in the Grundrisse 
 that Marx's analysis first  encompassed these two 
standpoints: the commodity- money relation and the 
capital-labour relation. Following the order of composition 
as set out by N. I. Lapin, Seiji Mochizuki writes that 
Marx gave up the "First Manuscript" of the 
EPM at the halfway point because he found a theoretical 
contradiction in the theory of alienation.  Mochizuki 
believes that the theory of alienation is 'idealist' 
 in a philosophical sense, because it presupposes a 
'non-alienated man', so Marx gave up using the term 
'alienation' and came to use 'division of labour' instead. 
 What Mochizuki  has overlooked is the theoretical 
consistency between the first EPM manuscript "First 
Manuscript: Latter Part" and the third EPM manuscript 
"Third Manuscript". 
        He fails to understand the content of the "First 
Manuscript: 
Latter Part" (comprehension of the laws of economics 
on the basis of the concept 'estranged labour' as 'general 
essence of private property'): this analysis also figures 
in the Grundrisse and the Manuscripts of 1861-63. 
      Yoshiki Yoshizawa (a specialist on Ricardo) writes 
that at first Marx 'rejected' Ricardo's labour theory 
of value (as did D.I. Rosenberg), but later 'accepted' 
 it in The Poverty of Philosophy. Yoshizawa concludes 
by saying that the 'critique of Ricardo's value theory 
was a matter of the 1850s or after for Marx'.  Shigeji 
Wada (a specialist on Adam Smith) and I,  however, 
 believe that the critical exposition on Ricardo's 
labour theory in the "First Manuscript" of 
EPM,  even in the "Notes on Ricardo",  if 
examined carefully,  does not negate the theory, but 
is rather a critique of it. 
      In the Manuscripts of 1861-63  Marx writes that 
there are two types of value theory in Smith's The 
Wealth of Nations  : the 'dissolving' type and the 
'composing' type. Extracts from The Wealth of Nations 
 in the "First Manuscript: Former Part" of 
EPM are limited to the passages in which Smith expounds 
the 'dissolving' type.  At the beginning of the "First 
Manuscript: Latter Part" of EPM Marx put his position 
clearly by saying:  'We have proceeded from the premises 
of political economy. We have accepted  its language 
and its laws'.  Those who assert that the 'early Marx' 
rejected Smith's (or Ricardo's) labour theory of value 
reveal that they are not really sure what Marx's labour 
theory of value actually is. They cannot distinguish 
between Marx's value theory and Ricardo's because they 
do not discern the differentia specifica of Marx's 
theory and hence cannot successfully  separate it from 
the classical view. 
     The classical labour theory of value led classical 
economists to affirm private property. Ricardo, like 
Smith, could not distinguish 'value' from 'price' and 
had no idea how to develop 'price' from 'value'.  They 
did not understand that the law of value is only a 
specific historical way -- a capitalist way -- of distributing 
social labour. That is why they did not find the intrinsic 
connection between the categories 'commodity' and 'money', 
 and hence the origin of surplus value. Marx's theory 
of value, however,exposes the historical character 
of commodity-production and leads us to question,  
rather than affirm, private property. 
Continuity in Marx's Theoretical System and Methodology
In recent papers I have attempted to demonstrate a continuity 
in Marx's theory and method from EPM to Capital  by 
detailing the continuity between EPM and The Poverty 
of Philosophy. The point is not that the term 'alienation" 
can or cannot be found in these texts, but rather the 
role that the term plays in Marx's system as it developed. 
Hence I emphasise the importance of the following:
       1) reading The Poverty of Philosophy as a whole, 
rather than reading its two chapters separately; 
      2) clarifying the deficiencies in Ricardo's theory 
of value and his method. 
When we read Chapter II of The Poverty of Philosophy 
 carefully, it is clear that Marx criticises not only 
Proudhon's but also Ricardo's method. This suggests 
that Marx criticises Ricardo's theory of value in Chapter 
I as well. In fact, Marx advances beyond Ricardo's 
theory there by grasping money as a relation of production 
and by trying to clarify the intrinsic relation between 
the categories 'commodity' and 'money'.  On this basis 
an inadequacy common to both Proudhon and Ricardo emerges: 
their inability to comprehend what is historically 
specific to capitalist relations of production. Although 
Proudhon shares this inadequacy with Ricardo,  his 
Philosophy of the Poverty was an attempt to criticise 
classical political economy, albeit an attempt that 
failed.  Hence Marx wrote that Proudhon had 'arrived 
in this roundabout way at the standpoint of classical 
political economy" (letter to J.B. Schweitzer, 
24 January 1865).
       Through this investigation I demonstrated that 
The Poverty of Philosophy is not a text in which Marx 
accepted either Ricardo's method or his labour theory 
of value. Rather it is a text which shows how to criticise 
classical political economy,  i.e. Ricardo, and it 
thus represents a critique of political economy in 
polemical form. Taking a critical approach to Ricardo's 
theory and method, Marx shows how Proudhon failed to 
advance beyond Ricardo. Marx's own critique of political 
economy is described there as a critique of the categories 
of classical theory based on an analysis of the historical 
conditions of capitalist society and its transitory 
relations of production. 
      In The Poverty of Philosophy the economic categories 
are defined as prerequisites for capitalist relations 
of production. Marx gives a critical analysis of the 
historical conditions of existence for each category 
(the circumstances which each category reflects) and 
of the other social relations which surrounded them. 
The theoretical system and the methodology of Marx's 
critique of political economy are clearly revealed 
in all these works: EPM, The Poverty of Philosophy, 
Grundrisse,  Critique of Political Economy (first published 
1859) and Capital. 
      Crucial to an understanding of these works and 
 to reconstructing Marx's view is an understanding 
of EPM as a whole, as it is there that Marx outlines 
his method.  This is a method of critical conceptual 
analysis of economic categories, beginning with 'alienated 
labour' understood as the 'general essence of private 
property'. [1]  This is based on a view of capitalist 
production as the zenith of private property. 
      Until recently philosophers have read the "First 
Manuscript: Latter Part" and the "Third Manuscript" 
of EPM separately from the rest of the manuscript materials. 
On the other hand economists have studied only the 
"First Manuscript",  separately from the 
others.  However,  EPM is actually the first draft 
of Marx's overall theoretical system -- 'A Critique 
of Political Economy' and each manuscript of EPM has 
an intrinsic logical relation to the others, detailed 
as follows 1) to 4): 
       1)  "First Manuscript: First Part"; 
This develops a concept 
(Vorstellung ) of bourgeois society; laws of private 
property; development of private property (landed property 
-- capital -- association); these laws are summarised 
at the beginning of the "First Manuscript: Latter 
Part".  Here capital is determined as the governing 
power over the worker's labour and products. Thus we 
are witness to the way that Marx reads or interprets 
Smith's phrase 'wealth is power'. Considering political 
power, Thomas Hobbes wrote 'wealth is power' in Leviathan. 
 Adam Smith added a paragraph to the third edition 
of The Wealth of Nations (Book I, Chapter V), interpreting 
this phrase as economic power or 'purchasing power' 
in the process of circulation. In EPM Marx redefines 
it as 'capital' or the 'commanding power' in the process 
of production. 
        2) "First Manuscript: Latter Part"; 
 This is the first attempt at a comprehension (Begreifung 
) of the 'necessary laws of private property'  (Marx-Engels 
Collected Works,  vol. 3, pp.270-1. Hereafter cited 
as 3 MEC 270-1); it is the first part of Marx's demonstration 
of how they arise from 'the very essence of private 
property' (3 MEC 271).
       Judging from descriptions here and in the "Second 
Manuscript" we can say that the immediate production 
process of capital is divided into two component parts, 
each of which is analysed separately. These two component 
parts can be summarised as follows:
      (a) 'the relation of private property as labour' 
(3 MEC 285)  = 'this realisation of labour appears 
as loss of realisation for the  workers' (3 MEC 272) 
 = 'appropriation [of the worker] appears as estrangement, 
as alienation' (3 MEC 281) = 'the essence of private 
property' (3 MEC 296);
       (b) 'the relation of private property as apital' 
(3 MEC 285) or 'the property relation of the non-worker 
to the worker and to labour' (3 MEC 281) =  'alienation 
[of the worker] appears as appropriation [of the non-worker], 
estrangement [of the worker] appears as truly becoming 
a citizen [Einbürgerung]' (3 MEC 281)[2] =
the concept of private property' (3 MEC 296). 
      The "First Manuscript: Latter Part" 
is the analysis of (a) above, which is logically basis. 
Paragraph (b) above is logically deduced from (a) as 
'the product, the result, the necessary consequence, 
of alienated labour' via the four definitions of 'alienated 
labour' that Marx offers. 
       3) "Second Manuscript";  This is the 
second part of Marx's attempt to comprehend the laws 
of economics. Here he analyses the other component 
of 'alienated labour'. In other words, the immediate 
production process of capital is analysed from the 
standpoint of capital. The following paragraph, a note 
to a missing page of the "Second Manuscript", 
shows clearly what Marx did, or at least planned to 
do:
We have already seen how the political economist establishes the unity of labour and capital in a variety of ways: (1) Capital is accumulated labour. (2) The purpose of capital within production -- in part, reproduction of capital with profit, in part, capital as raw material (material of labour), and in part, as an automatically working instrument (the machine is capital directly equated with labour) -- is productive labour. (3) The worker is a capital. (4) Wages belong to costs of capital. (5) In relation to the worker, labour is the reproduction of his life-capital. (6) In relation to the capitalist, labour is an aspect of his capital's activity. Finally, (7) The political economist postulates the original unity of capital and labour as the unity of the capitalist and the worker; this is the original state of paradise. The way in which these two aspects, as two persons, confront each other is for the political economist an accidental event and hence only to be explained by reference to external factors ( 3 MEC 312; emphasis added).
This paragraph above shows that Marx analysed the process 
of 
production in the "Second Manuscript", defining 
the roles of the following three elements in the process 
of production: labour, materials and machine. The emphasised 
sentence indicates that Marx had already grasped that 
labour reproduces capital with profit in the process 
of production.
     At this stage of the analysis the term 'capital' 
is used for the first time, so we can observe a genetic 
description. Marx proceeded from 'an actual economic 
fact' that  'labour produces not only commodities : 
it produces itself  and the worker as a commodity' 
(3 MEC 272). Through the analysis of the 'fact', Marx 
derived 'the essence of private property' and 'the 
concept of private property' in the "First Manuscript: 
Latter Part".  Here, after a twofold analysis 
of the immediate process of production of capital, 
'commodity' and 'private property' are defined further 
as 'capital', 'accumulated  labour' reproduced with 
profit , which has reached the stage of 'indifference 
to its content'. 
      A supposition concerning the contents of the missing 
pages of the "Second Manuscript" is that 
they would have covered the 'three stages of exchange' 
in the  Notes on James Mill. This seems nonsense to 
me. History, qua history, is no longer Marx's concern 
from the "First Manuscript: Latter Part" 
onwards. Even in the "Notes on James Mill", 
 Marx's concern is with the development of the economic 
categories, e.g. 'exchange' from 'private property'. 
The contents of these missing pages can be inferred 
from the descriptions in the extant pages of EPM.[3] 
       Moreover I would point out that the last paragraph 
of the "Second Manuscript" is a sketch of 
the development of the economic categories. The last 
paragraph of the  Notes on James Mill ("First 
Note")  is also the same kind of sketch. They 
are not descriptive history at all. 
       Some commentators say that Marx confused 'capital' 
with 'private property in general',  but such comments 
display ignorance of his analysis. Capital should and 
must be developed or explained from simpler and more 
abstract categories within Marx's system. Crucial to 
comprehending 'capital' as 'self-realising value' is 
a grasp of capital as a social relation containing 
'alienated labour' as a necessary element. 'Capital' 
becomes fully comprehensible through 'alienated labour', 
i.e. the 'essence of private property' which produces 
the 'property relationship of the non-worker to the 
worker and his products',  i.e. 'the concept of private 
property'. 
       4) "ThirdÅ@Manuscript"  (References 
to the "Second 
Manuscript"):  This demonstrates how 'alienated 
or estranged abour' is the logical basis of the following:
       (a) the necessary development in economic theories: 
'F. Quesnay as the transition from the mercantile system 
to  
Adam Smith' (3 MEC 292); 
       (b) the real movement of private property: capital 
as a world-historical power' (3 MEC 293) and as a contradiction 
driving towards resolution; 
      (c) the development of economic categories: the 
overwhelming power that profit and rent have over labour 
is rooted in the immediate process of production, the 
misery of workers in capitalist society is the logical 
result of the alienation of creative abilities [Arbeitsvermögen] 
capitalists (see the critique of "The Trinity 
Formula" in  the Manuscripts of 1861-63 ).
       Commentators who have conceptualised Marx's theoretical 
development as culminating in the 'old Marx' have told 
us nothing new. What is crucial for those who want 
to learn from Marx's method is to absorb his intellectual 
development, to follow how he comes to define his terms. 
From this viewpoint I would like to remind readers 
of a paragraph in the Grundrisse,  in which Marx analyses 
the failure of Smith and Ricardo to comprehend the 
origin of surplus value: 
Thus capital does not originally realise itself -- precisely because the appropriation of alien labour [fremde Arbeit] is not itself included in its concept. Capital appears only afterwards, after already having been presupposed as capital -- a vicious circle -- as command over alien labour (Pelican ed., p. 330).
As I have already shown above, Smith interprets Hobbes's 
'wealth is power' as economic power, i.e. 'purchasing 
power', but meant the purchasing power of commodities 
in circulation only. Marx interpreted this once again 
and gave it another sense, i.e. capital is 'commanding 
power' over the worker and his products in the process 
of production. Marx criticised Smith because he grasped 
capital only as command in circulation but not as the 
power in production process. If Smith had seen power 
in the process of production,  he could easily have 
understood the origin of surplus value.
      By 'command' Marx understands 'capital' as a 'production 
relation of which alienated labour is one essential 
element", and thus he comes to define capital 
as 'self-realising value': value which increases itself 
through the labour of others. It is this understanding 
which leads him to explain the origin of surplus value 
and to define capital as a social relation of production, 
as a process and as a 'self-realising value'. It is 
with this idea that EPM begins: 
What is the basis of capital, that is, of private property in the products of other men's labour? . . .Capital is thus the governing power over labour and its products. . . . Later we shall see first how the capitalist, by means of capital, exercises his governing power over labour,[4] then, however we shall see the governing power of capital over the capitalist himself (3 MEC 246-7).
Notes
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[1]. Crucial to a full understanding of Marx's communism is distinguishing the two terms: 'concept of private property' (der Begriff des Privateigentums ) and 'essence of private property' (das Wesen des Privateigentums ). See Marx's critique of 'crude communism'.
It has, indeed, grasped its [private property's] concept, 
but not its [private property's] essence (3 MEC 296).
 
The English version of EPM, however, prevents readers 
from understanding this fully by translating das Wesen 
 into either 'essence' or 'nature' (see 3 MEC 271, 
 281,  290,  294 and 296). 
[2].	Even in MEGA2, IV-2, the text is read as 'truly 
becoming a 
citizen (Einbürgerung ). In my opinion, however, 
the term should be read as 'absorption (Einverleibung 
) or, at least, the two should be taken to be similar. 
See the following passage in the Grundrisse : 
Firstly: The appropriation [Aneignung ], absorption [Einverleibung] of labour by capital -- money, i.e. the act of buying the capacity of disposing over the worker . . .brings capital into ferment, and makes it into a process, process of production, . . . (Pelican ed., p.301).
In this connection, I would like to point out that the 'devaluation of men' (3 MEC 271) means 'wage labour':
His [The worker's] valuelessness and devaluation is 
the presupposition of capital and the precondition 
of free labour  in general (Grundrisse,  Pelican ed., 
p.289).
	
[3]. See "First Manuscript: Latter Part", 3 MEC 274, 279, 281; "Second Manuscript", 3 MEC 285, 289; "Third Manuscript", 3 MEC 312.
[4]. See "3. THE RULE OF CAPITAL OVER LABOUR AND THE MOTIVES OF THE CAPITALIST" (3 MEC 250).