Influence of Credit on Prices 



31 



Table XXIII 



Spread of Prices 



English prices are conveniently summarized under the heads 

 of food and materials. A comparison of these two important 

 classes shows that, on the average, prices of materials both rise 

 and fall before food prices, but that the spread of prices is great- 

 est in the case of food. In considering the crises separately, ex- 

 ceptions to this order will be noted. . The early rise and fall of 

 the prices of materials is to be explained by the changes in de- 

 mand for such commodities. There is comparatively little dif- 

 ference in the rate of production between good and bad times. 

 The crisis is essentially a psychic phenomenon. On the other 

 hand, the demand for food is more constant and the fluctuations 

 in food prices are due more to changes in supply. The general 

 rise and fall of food prices seems also related to crises chiefly as 

 -a causal movement. This point is brought out more fully later 

 in the discussion. 



