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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  outlet ­
  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