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the period 1877-80 from 28 to 17 millions; while the
holding of bills in all the banks in the period 1876-79
decreased from 36 to 26½ millions; loans on deposited
securities in the period 1877-80 from 22¾ to 15½
millions; and the total of loans in the period 1877-80
from 65½ to below 49 millions. Here as elsewhere it
was noted that the discounting of bills decreased first;
at the beginning of the bad time customers were ready
to produce deposits for their loans. On the other
hand, when the good times began again, loans on bills
or personal credit were the first to be extended. As a
consequence of the bad times and a poor sale, loans on
merchandise, especially on deals and boards, at once
rose to a rather considerable extent, decreasing again
rapidly to a minimum in the following years. The
banks’ foreign bills, as well as their credit with their
correspondents, decreased in the period 1873—78 from
30 to 8 millions; in the Bank of Finland they went
down during the period 1874—78 from 24 to less than
6 millions; and if to this is added the decrease of its
foreign saleable securities, from about 26 to about
9 millions, there appears here a total decrease in
resources from 50 to 15 millions. Notwithstanding
the formation of the gold reserve, the ready money
did not increase, but decreased by some millions. In
1878, with a bad harvest, the real financial crisis
developed.
As a consequence of this situation and of the
liquidation which had already taken place, the general
crisis of 1882-84, which raged in the United States,
and was marked by the collapse of the Union Générale
in France, was less felt in Finland. The prices and
export of lumber had been good in 1880 and 1882,
but were poor in 1883, in consequence of this general
crisis. Also other export to Russia was bad. The
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