6 Minnie Throop England 



Unfortunately the reports for the Bank of England do not 

 give the loans and advances separately after 1875, but include 

 them under the head of "Other Securities."' It is quite possible, 

 however, that for the present purpose the amount of securities 

 held is quite as significant as the separate items. ^ For that rea- 

 son the following table is given, in which it will be noticed that 

 the movement of securities is quite similar after the three crises 

 in which comparisons may be made, to the movements of loans 

 and advances : 



Table III 

 Miniinuvi Point After a Crisis. 



Comparing the bank items for the three countries, England, 

 France, and the United States, the movement is found to be very 

 similar. Deposits in each case begin to increase before the note 

 circulation. This probably means that hoarded funds are being 

 returned to the bank and that savings are being accumulated. 

 Again, the total credit instruments of the bank, tlnat is, the sum 

 of the circulation and deposits, begin to increase before there is 

 any expansion in loans. This seems to point further to a change 

 from a money to a credit economy ; the bank credit in use in- 

 creases while the transactions of the bank, measured by its loans, 

 are still decreasing. 



That during a crisis money, instead of credit, is called for, for 

 the settlement of accounts, is a recognized phenomenon. It is 



' For the compdsition of "Other Securities," see Palgrave, R. H. I. 

 Bank Rate and the Money Market. London, 1903. pp. 27-28. 



46 



