This question <101|103> overall <101|103> Harmon: <97|108>.

Question 216: How does it become plain here that it is not the exchange of commodities which regulates the magnitude of their values, but rather the reverse, it is the magnitude of the value of commodities which regulates the proportion in which they are exchanged?

[102] Harmon: Linen Gone Wild.   In order to determine the relationship between the actual value of a commodity and its exchange value we must examine the circumstances in which the commodities are traded. If, for example, 20 yards of linen are exchanged for a coat in one part of the city, but in another part are exchanged for 10 lbs. of tea, one might assume that the value of linen changes with the circumstances in which they are traded, consequently giving the linen multiple exchange values. According to Marx, however, this is not so, but the value of the linen remains constant regardless of who is buying or trading for it. For example, it is true that linen is worth one coat or 10 lbs. of tea whether you trade your linen at a coat factory or the grocery store; the exchange value remains the same. In a different part of the city, 20 yards of linen would not be worth 20 lbs. of tea because the proportion of tea to linen would be too high. The value of the linen itself determines the quantity of the other commodity being traded for it, not the other way around. In other words, from the value of 20 yards of linen the exchange proportion in coats or tea is established.

Hans: I assume with “the proportion of tea to linen would be too high” you mean that in terms of demand and supply, too much tea and too little linen is produced. You are making an important point. If exchange proportions are determined by value rather than value by exchange proportions, then it can happen that there is a discrepancy: the exchange proportions which correspond to values may be different than those actually observed. These discrepancies engender their own adjustment: if the exchange-value of linen is less and the exchange-value of tea is more than what would correspond to the value relations, then less linen and more tea will be produced. That's why it is still correct to say that value determines exchange proportions, despite the discrepancies.

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