This maximum amount was only an accident, under the influence of
pressing needs at the time of the difficulty, for since 1881 the yearly
reduction of the maximum and minimum amounts ensued. This tendency had
occurred suddenly, and disappeared likewise; the resumption dating from
1885, a year sooner than in Europe.
The discounts of the New York Banks, which had been reduced to
$287,000,000, rose immediately upon the opening of the new period of
prosperity, and a growing activity carried them to $408,000,000 in 1889;
after a few more fortunate years we come to the end of the period of
prosperity and high prices.
We gather the following about discounts from the balance sheets of the
Associated Banks of New York. If we cast our eyes over the balance
sheets of the National Banks of the Union, we must note a falling off of
$100,000,000 in the paper discounted, that is, from $1,300,000,000 to
$1,200,000,000 (1884-1885). After this short period of stoppage, clearly
indicating the necessity for liquidation, discounts resumed their steady
expansion, and rose to $1,470,000,000 in 1886, to $1,587,000,000 in
1887, and finally to $1,684,000,000 in 1888, when we were in the midst
of a period of development and consequently of high prices and of
prosperity; and the same is true in France and England.
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