FALLING TENDENCY OF PROFIT RATE 61 departments I and II. If it could be demonstrated that the pace of the development of the forces of production is slower in Department II than in Department I, as implicitly maintained by Marx/ her thesis could be rejected. I feel that this question is a prospective channel of empirical research on this problem. KARL SCHOER 1 Suhas Ghattopadhyay, "Falling Tendency of Rate of Profit in Indian Manufacturing Industries", Social Scientist 54-55, January-February 1977, p 47. 2 Ibid., p 25. :< {e. . . all the costs of circulation which arise only from changes in the forms of commodities ^ do not add to their value. They are merely expenses incurred in the realization of the value or in its conversion from one form into another. The capital spent to meet those costs (including the labour done under its control) belongs among the faux frais of capitalist production." Karl Marx, Capital vol II, p 152. For further elaboration of this concept, see Natalie Moszkowska, ^ur Dynamik des Spatkapital-ismus, Zurich 1943, ch III. 4 Natalie Moszkowska, Das Marxche System, Ein Beifrag zu dessen Ausbau, Berlin 1929. For details see Karl Schoer, "Natalie Moszkowska and the Falling Rate of Profit", New Left Review 95, January-February 1976. ^ Ibid. 7 Karl Marx, Theories of Surplus Value, vol III, ch 23, sec 2.