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Lumber and other forms of wood follow to an unusual
extent the general expanding and contracting
movements of the great markets. But this is not always
so; and, as in the case of iron, there is also a
considerable demand for wood during the early days of a
period of depression. Constructive work is going on;
contracts have been made; it takes time before
business can be stopped. On the other hand, the
pre-arranged transport of wood to the markets cannot be
stopped, since it takes in some cases four years from
the moment of cutting down the trees in the forests.
Among other disturbing causes in Finland must be
remembered the two monetary changes from irredeemable
notes to silver, and from silver to gold, which
were especially disturbing, because long periods were
allowed to elapse before the changes decided on were
carried out.
The period of the sixties has been spoken of in
connection with the difficulties caused by the
introduction of the silver standard, and we have explained
how this transformation of the monetary system
coincided with severe famines, as well as with the universal
crisis of 1864, which culminated in a panic in London
on “Black Friday” in 1866, when Overend & Gurney
failed. The situation in Finland became peculiarly
difficult, because the government delayed the carrying
out of promised monetary reform, and thereby
uncertainty was created; this being especially the case
at the beginning of 1865. The Bank of Finland’s
total loans decreased between the end of 1863 and
the end of 1865 from 25 to less than 20 million
marks, and in October 1866 to 18 million marks;
while in 1865 even the Union Bank was obliged to
restrict its discounts by about 2 million marks.
The note circulation of the Bank of Finland decreased
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