Merchant and usurer's capital always historically precede the formation of industrial capital and are logically the necessary premise of its formation (Das Kapital, I); but in themselves, neither merchant capital nor usurer's capital represent a sufficient premise for the rise of industrial capital (i.e., capitalist production); they do not always disintegrate the old mode of production and put in its place the capitalist mode of production; the formation of the latter 'depends entirely upon the stage of historical development and the circumstances surrounding it.'