Influence of Cre'dit on Prices 



15 



Table IX' 

 /lla.riif/u)// Point Before a Crisis 



In considering the bank items, there appears to be no special 

 significance in the movements of circulation and deposits relative 

 to each other because the one may be substituted for the other. 

 Which shall be used is determined solely by convenience or cus- 

 tom. But in comparing the sum total of the circulation and de- 

 posits with the loans, it is found that the former reaches its max- 

 imum before the latter. It is in complete harmony with the state- 

 ment made above in connection with the increase of these bank 

 items that in their relative movements can be traced the transition 

 from a money to a credit economy. In this case, since the circu- 

 lation and deposits begin to fall ofif some months before the con- 

 traction of loans occurs, the change can be traced from a credit 

 to a money economy. Data for the United States, France, and 

 Eno-land are as follows : 



^The minus sign before a number means after the crisis. 



55 



