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develop a speculative activity. Loans from government
funds increased during the period 1887-90 from 19½ to
27 millions, while the funds sold part of their
securities. The years 1888—90 were also a period
remarkable for the formation of new joint-stock companies,
which were floated to the value of about 24 million
marks, 16 millions being subscribed in Helsingfors
and its vicinity alone. A large amount of building
work was also going on at Helsingfors. The total
bank loans were doubled during the period 1887-90,
rising from 71½ to 137 millions. It was not only
bad Russian money which created commercial
difficulties, but also the new and increased duties on
imports into Russia imposed in 1888.
At the end of 1890 the Baring crisis in London
developed into a universal crisis, which at last in 1893
devastated Australia and the United States. As on
several previous occasions, it was not at the moment
of the great crisis in the world’s markets, but rather
later, that Finland suffered. In this case it was not
before the end of 1891 and the following years.
Lumber had gone down, and the export was bad in
1890, decreasing in 1889-90 from 44 million to
below 34 million marks; but it was as much, or
more, the poor harvest in Finland in 1891-92 which
caused great difficulties. The import in 1891 was
146 millions, the export 104 millions; the import
went down to 126 millions in 1893, the export to
94 millions in 1892, but increased again in 1893 to
115 millions. The rate of discount in 1890 was 3½,
and the Bank of Finland rate was put up then by
only one-half; but at the end of 1891 it went up to
5½ and 6; and at the same time the Bank was obliged
to borrow from the government 5 million marks,
requiring also in the following year government
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