The purchaser of some kinds of property in times of depression is securing them at a lower capitalization than they will later have.

The rise in value may be foreseen as well by seller as by buyer, but the low capitalization reflects the high interest rate temporarily obtaining.

A.T.

Stewart, once the most famous New York merchant, is said to have laid the foundation of his fortune when, being out of debt himself, he bought up the bankrupt stocks of his competitors in a great financial panic.
The high interest at such times is but the reflection of the high premium on present purchasing power.
The worst of the evils of crises are confined to the markets where the greatest numbers of short-time loans are made.

Most of the long-time loans do not fall due in such seasons of stress, and the great mass of slowly exchanging wealth alters little and slowly in price.