The main conclusion is very plain–that english trade is become essentially a trade on borrowed capital,

The process is this: the plentifulness of loanable capital causes a rise of prices; that rise of prices makes it necessary to have more loanable capital to carry on the same trade. I will deal with these characteristics in successive chapters. No doubt it takes time before even this simple reasoning is understood by uneducated minds. It would be much more in accordance with what we know of similar crises elsewhere to expect hoarding on a large scale, rather than a diminished demand for currency and an ability to export it. │ │1900│ 8 │ 3 │1907│ 9 │ 3 │ │1901│ 8 │ 3 │1908│ 9 │ 3 │ │1902│ 8 │ 3 │1909│ 8 │ 3 │ │1903│ 8 │ 3 │1910│ 6 │ 3 │ │1904│ 7 │ 3 │1911│ 8 │ 3 │ │1905│ 7 │ 3 │1912│ 8 │ 3 │ │1906│ 9 │ 3 │1913│ 8 │ │ └────┴────────────┴────────────┴────┴────────────┴────────────┘ From this table and the chart it is safe to make the generalisation that the Indian Rate may be expected to reach 8 per cent in the winter or early spring, and to fall to 3 per cent in summer.

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