24 
normal times, in active demand with rising 
prices after a spell of good trade, and in 
excessive supply with drooping prices after 
a spell of bad trade. 
The country’s course of trade is, therefore, 
the dominant factor causing the variation in 
the nature of the Market Influence. But 
there are one or two minor factors (though 
they are intimately associated with the course 
of trade) which temporarily enlarge the out 
let for the savings of the nation, and so 
compete with the demand for existing stocks ; 
for the demand for loans may rise to such a 
point that it is more profitable to deposit 
with the Banks or lend to traders than to 
receive interest from stocks. Thus the 
demand for stocks is temporarily delayed. 
Furthermore, there may be a sudden increase 
in the supply of stocks, caused by trade 
expansion, over-production, wars, and other 
similar conditions. If such securities are issued 
to more than the normal extent, the supply of 
stocks becomes greater than the demand, so 
that in order to compete successfully with older 
securities new securities are offered below 
their comparative vaine, and the prices of the 
existing stocks are thereby depreciated. 
We have now outlined the main factors 
which influence the ratio of investment