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assistance in order to obtain a foreign credit of 10 millions.
Such a foreign credit for the national bank, guaranteed
by the government, is, however, provided for and
approved by the Diet. Business was then suffering
because of a bad harvest in Russia, and on account
of the prohibition of the export of oats from Finland
to other countries; also from the stoppage of traffic
due to fear of the cholera, and finally from the tariff
war between Russia and Germany, which had provoked
in St. Petersburg an order to increase the Finnish duty
by 50 per cent. Business failures were in 1889 only
155; in 1891 they were 285; in 1892 they had
risen to 448; in 1893 they were 413. The speculative
building going on in Helsingfors suffered especially.
We have already had occasion, when speaking
of manufactures and commerce as well as of other
matters, to show the results of bad times by various
statistics. As is usually the case, the banks profited
little by the great demand for money. In 1889-90
they had paid on an average 11.6 per cent. in
dividends. In 1891 there was a high rate of
interest for loans, but also for deposits, and their
dividend was only 8 per cent.; in 1892 it was 7 per
cent.; in 1896, 6.2; in 1894 the rate of interest for
deposit was decreased from 5 to 4 and 3½ per cent.,
and the dividends in the three following years were
about 7 per cent. Some part of this result was due
to the greater competition between the now numerous
banks.
The depression of trade in the early part of the
nineties, in Finland as in other countries, was soon
followed by a great increase. The business of the
private banks was now especially extended, their
deposits increasing between 1890 and 1894 from 89 to
132 millions, and their loans from 98 to 146 millions.
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