File:Statistical studies in the New York money-market; preceded by a brief analysis under the theory of money and credit, with statistical tables, diagrams and folding chart (1902) (14800603653).jpg

Identifier: statisticalstudi00nort (find matches)
Title: Statistical studies in the New York money-market; preceded by a brief analysis under the theory of money and credit, with statistical tables, diagrams and folding chart
Year: 1902 (1900s)
Authors: Norton, John Pease, 1877-
Subjects: New York Stock Exchange Credit Money
Publisher: New York, MacMillan
Contributing Library: Robarts - University of Toronto
Digitizing Sponsor: University of Toronto

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actical interest. A study of the disturbances in credit during the years1884, 1890, 1893 and 1899 discloses a sequence of four phe-nomena : (i) a rapid fall in reserve deviations; (ii) culminatingwith high discount rates; (iii) a fall in the loan deviations;(iv) a readjustment of the above items with a rapid rise inreserve deviations to great proportions. In the extent of these movements and in the level fromwhich the movement starts, we have criteria for the definitionof crises and panics and a means of comparing these disturb-ances in credit, as measured by banking barometers. Thuswe may define a panic, in general, as a less violent fall in thereserves from a higher level of shorter duration, and a crisisas a more violent fall from a lower level of longer duration. §73. As an illustration, I have prepared Diagram No.20, showing the movement of the dynamic elements of thereserves during the years 1893 and 1899. The one yearcontains the crisis of 1893 and the latter year the panic of
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—99— December (8th. The dynamic indices are the differencesbetween the percentage deviations and the periodic indices. In comparing these two disturbances the two points alreadymentioned should be noted: (i) the level from which thedisturbance starts, and (ii) the rate of decrease per week.The lower the level and the swifter the decrease, the moresevere is the catastrophe. In the history of crises and panics,writers have called naturally sudden decreases from highlevels panics, and violent and prolonged decreases from lowlevels crises. The crisis of 1893 starts from the low level of approxi-mated — 15. The panic of December 18th, or the prelimi-narv liquidation, started from a level of about +25. Black Wednesday, July 26, 1893, occurred after a fall offorty points in six weeks, or an average fall of over six pointsper week. The panic of December 18th occurred after a fallof about twenty-live points, distributed over twenty-sevenweeks, or an average weekly fall of a little less t

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