Prices of Commodities during last Seven Years ( 1886 - 92 ). 401 
We find that for vegetable food the third quarter, when the 
harvest begins, is on the average the lowest, then follows the fourth 
quarter ; the first is the highest, while the second shows a tendency 
to fall. In animal food, on the other hand, the third quarter is the 
highest, though in summer prices should be influenced by the invari- 
ably lower prices of butter ; the last quarter is the lowest. The 
movements in the third and fourth quarters are, therefore, on the 
average exactly opposite to those of vegetable food, while in the 
first and second quarters they are similar. 
Materials, however, are distinctly dearer during the winter than 
in spring and summer, not only minerals (coals are naturally higher 
in winter), but also textiles and sundry materials. The totals of all 
commodities show the second quarter to be the lowest, then follow 
the third and fourth, while the first quarter is the highest. If eight 
years are sufficient for drawing up such averages, the figures will 
show to what extent allowance has to be made in judging of move- 
ments from month to month or from quarter to quarter. 
Review of the Last Seven Years. 
Most of the events that have left their impression on the course 
of commercial and financial affairs during the last seven years will 
still be fresh in the memory of those more fully acquainted with the 
subject, but it may nevertheless be interesting and useful, and may 
contribute to the better understanding of the fluctuations, to give a 
condensed summary of the more important occurrences. 
The index number had been 70 for the first half of 1886, and 
many people were rather more hopeful towards the end of the year. 
But the extreme limit had not yet been reached, and prices in 1887 
were on the average still two points lower. It was not till the end 
of the latter year that the first signs of a real improvement became 
visible, but the average of general prices was only raised by the 
French copper and tin speculations. The two following years 
(1888-89) were, however, distinctly better, though prices were not 
uniformly affected. Wheat, for instance, and indeed corn generally, 
owing to the large harvests of 1887 and 1888, ruled very low in 1889. 
The activity of trade during these years was considerable, manu- 
facturers here and on the Continent were well employed, new 
factories were called into existence, and the plant and machinery of 
the old ones were renewed and increased to cope with the require- 
ments of improvements, of new inventions, and the larger production 
of raw materials. The development in extra-European countries 
also was very important, and the Stock Exchange did not lag behind. 
Large foreign loans were brought out, enormous sums invested 
in all kinds of undertakings in extra-European countries, and a 
great number of private firms transformed into limited companies. 
The average index number of prices had increased from 68 in 
1887 to 70 in 1888, and 72 in 1889, and the highest point (73 - 7) 
was reached in November and December 1889, when iron and 
merino wool were at their best. A reaction followed early in 1890, 
