4 Minnie Throop England 



phase of the movement of prices which Professor LaughHn has 

 not discussed — is treated at more length in the later discussion.^ 



THE RISE OF PRICES 



Beginning with the lowest point of depression following a 

 crisis, it is found that clearings — a good index of the amount 

 of credit being used in transactions — begin to increase- before 

 commodity prices : 



Table I 

 Minim mn Point After a Crisis 



In the United States the average time elapsing after a crisis 

 before clearings improve is i year and 6 months, while com- 

 modity prices do not begin to rise until 3 years and 9 months. 



'C/ Taylor, W. G. L. The Influence of Credit on Prices. Yale Re- 

 view, August, 1906. 



"Obviously, the group which reaches its minimum point at the earliest 

 date is the first to increase. Likewise the group which reaches its max- 

 imum first is the first to decrease. 



44 



