THE THEORY OF INTEREST
facturer and of other elements are superimposed uponthe cycle of the farmer. The manufacturer’s cycle is alittle later than the farmer’s and shifts the high ratesfrom fall toward winter. Accordingly in England, whichis more dominated by the manufacturer, the cycle,though similar to that just observed for the UnitedStates , is shifted slightly forward, as is shown in Chart41. 29
§10. Summary
Although the facts presented in this chapter do notprove the theory presented in previous chapters theyare not in conflict with it. According to the theory, ifthere is a high degree of foresight, self-control, and re-gard for posterity and income streams are large andplentiful in food-element, or have a descending timeshape, then, other things being equal, the tendency willbe for the rate of interest to be low, capital will be accu-mulated, the community will lend to other communities,and the instruments it creates will be more durable.We find these results present in actual fact where theantecedent conditions enumerated are also present. Re-versing the conditions, we find reversed results. Of coursethese statistical evidences are very general, since wenever can assert that “other things are equal,” and thusisolate and measure any one particular factor, as in themore exact inductions of physical science.
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