A crbiB mny take its rise from credit extension in other IhtiD property IniluBtrlal buttiness. Such, r.g., wu Id great measurB tbe American crisix in 1S3T, when the moat obvioua and dieastroufl inflation was in Bpeculative land values and the credits based on Uiem. But it LB no stretch of the concept to say that in that case the situation out of which Uie crisis arose was an overcapitalization of tbe laud values in question. Capitalized land is, of coutBe, " capital " for husinesa purpuaea as truly as any other body of values thai are capiUliied and drawn into the money market.
recited above, in respect of a large and widely prevalent discrepancy between eaming-capacity and capitalization, a drastic readjustment of values is apparently unavoidable.
The point has already been adverted to once or twice that the most substantial immediate outcome of such a liquidation as is involved in a crisis is a redistribution of the ownership of the property concerned in