Minnie Throop England 

 Table V — Contitiued 



The movements again show a striking uniformity. In each 

 country (except Germany) the loans of the hanks increase before 

 a rise in commodity prices occurs. In every instance except one 

 (France in 1847), loans begin to increase at the same time or 

 earlier than prices. Is it. then, going too far to say that because 

 the banks increase their loans, commodity prices begin to rise? 

 Through the extension of loans the purchasing power of the pub- 

 lic has been increased ; this purchasing power is used to secure 

 commodities, and the enlarged demand for goods causes their 

 prices to rise. Inflation of prices, then, begins zvith the increase 

 in the loans of the banks. 



The increase of loans, after a crisis, occurs earliest in the 

 United States, beginning at the expiration of i year and 5 

 months ; in England at the end of 2 years and 10 months : in 

 France not until 3 years and 6 months have elapsed. The order 

 is what one would have anticipated: the United States, the most 

 enterprising as well as most speculative, France the most con- 

 servative in action, while England occupies the intermediate 

 place. 



^For the same reason as explained concerning tables II and III. two 

 sets of figures are here given for England. 



48 



