Note 185-6 — Chapter IV

Thus the rate of interest in Rome fell from 12 to 4 per cent. when Octavian suddenly threw the treasures of conquered Egypt upon the market, and the price of commodities only doubled. When later commerce had divided this amount of money among the provinces, it rose again. (Sueton., Oct., 41; Dio C., LI, 17, 21; Oros, IV, 19.) Law's emissions of paper, in colossal amounts, depressed the rate of interest to 1¼ per cent. (Dutot, Réflexions, 990—Daire.) But as soon as the paper money had lost its value, the former condition returned. Similar observations in Rio de Janeiro: Spix und Martius, Reise, I, 131.