In times of good credit there are a great number of strong purchasers, and in times of bad credit only a smaller number of weak ones; and, therefore, years of improving credit, if there be no disturbing cause, are years of rising price, and years of decaying credit, years of falling price.
This is the meaning of the saying 'John Bull can stand many things, but he cannot stand two per cent:' it means that the greatest effect of the three great causes is nearly peculiar to England; here, and here almost alone, the excess of savings over investments is deposited in banks; here, and here only, is it made use of so as to affect trade at large; here, and here only, are prices gravely affected.

In these circumstances, a low rate of interest, long protracted, is equivalent to a total depreciation of the precious metals.

In his book on the effect of the great gold discoveries, Professor Jevons showed, and so far as I know, was the first to show, the necessity of eliminating these temporary changes of value in gold before you could judge properly of the permanent depreciation.

He proved, that in the years preceding both 1847 and 1857 there was a general rise of prices; and in the years succeeding these years, a great fall.

The same might be shown of the years before and after 866, _mutatis mutandis_.
And at the present moment we have a still more remarkable example, which was thus analysed in the Economist of the 30th December, 1871, in an article which I venture to quote as a whole: 'THE GREAT RISE IN THE PRICE OF COMMODITIES.
'Most persons are aware that the trade of the country is in a state of great activity.