Influence of Credit on Prices 



49 



The group common to the three countries in the crisis of 1857 

 is minerals and metals. This points to the rapid extension of 

 railways which took place prior to this crisis, especially in the 

 United States. In the latter country alone the number of miles 

 of railway increased from 5,996 in 1848 to 28,789 in 1859.^ The 

 disturbance in food prices in England and Germany during this 

 same crisis is doubtless connected with the changes in and rapid 

 extension of crop areas. England, it will be remembered, had 

 shortly before (1846-49) abolished the corn laws, and her wheat 

 production was decreasing in importance. Her declining posi- 

 tion as an agricultural nation is shown by the following figures 

 giving the percentage of population engaged in the different 

 occupations :- 



The textiles suffered in the crisis of 1866. This fact is ade- 

 quately explained by the enormous check in cotton production 

 in the United States owing to the Civil war, and the speculation 

 in cotton which followed as a result. 



The crisis of 1873 was a very general crisis as well as a very 

 severe one. "The promotions for all the world for the year 1872 

 were estimated at 12.6 billions of francs, of which the largest 

 part naturally went to France on account of the war loans. Out- 

 side of France, the largest investments were in America, Eng- 

 land, Germany, Austria-Hungary, Turkey, Russia, and "Italy, in 

 the order mentioned. The two years 187 1 and 1872 absorbed 

 20 billions of francs. In 1871, however, four-fifths of the invest- 

 ments were in state loans, while in 1872, in spite of the French 



'Ryner. On the Crises of 1837, 184/, and 1857, in England, France, 

 and the United States. In Univ. Stud. (Univ. of Neb.), 5:156, April, 1905. 

 -Ibid., 154. 



89 



