Interest Rate

SOME ILLUSTRATIVE FACTS

1913. It will be noted that the fluctuations shown onChart 40 are almost identical with those shown on Chart39. No comparison of rates is possible because Chart 40shows only monthly deviations above and below the av-erage annual rate, while Chart 39 shows the average ofactual rates. Both charts show a low for February, a re-

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CHART 41

Monthly Averages of Discount Rates, Bank of England.

bound in March and April, a deeper depression in June,then a buoyant advance to the peak in September andOctober, followed by a slump when the autumn demandfor money and credit to handle the crops is past.

In a community dominated by some industry otherthan farming the cycle would be different. The rates areof course a composite in which the cycles of the manu-

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