[Lombard Street: A Description of the Money Market by Walter Bagehot]@TWC D-Link book
Lombard Street: A Description of the Money Market

CHAPTER VI
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The augmented production, which is the reason of the real prosperity, depends on the full working of the whole industrial organisation--of all capitalists and labourers; that prosperity was caused by that full working, and will cease with it.

But that full working is liable to be destroyed by the occurrence of any great misfortune to any considerable industry.
This would cause misfortune to the industries dependent on that one, and, as has been explained, all through society and back again.

But every such industry is liable to grave fluctuations, and the most important--the provision industries--to the gravest and the suddenest.
They are dependent on the casualties of the seasons.

A single bad harvest diffused over the world, a succession of two or three bad harvests, even in England only, will raise the price of corn exceedingly, and will keep it high.

And a great and protracted rise in the price of corn will at once destroy all the real part of the unusual prosperity of previous good times.


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