[Footnote 186-6: See the very clear but not entirely complete discussion in _John Stuart Mill_, Principles, IV, ch. 3 ff. When new railways, machines, etc., before they are complete, simultaneously increase the rate of interest and the rate of wages, and even sometimes rent, although they do not immediately increase the national income in any way, the phenomena are to be explained, not by a distribution of income, but as the result of an advance of capital made.] [Footnote 186-7: Compare _supra_, § 184. The rise of the rate of interest in Basil, between 1370 and 1393, _Arnold_ (loc. cit.) accounts for by the wars and defeats of the upper German cities. Similarly in Zürich, 1457. (_Joh. Müller_, Schweizer Geschichte, IV, 211.) During the time immediately following the Spanish war of succession, the _usuriers les flus modérés_ in France got 12-15 per cent. a year. (_Dutot_, Réflexions, 1866.) In Russia the rate of interest, after the war of 1805-15, rose by 4-5 per cent. (_Storch_, Handbuch, 35 seq.) Per contra, _Nebenius_, Œff. Credit., 70 seq.] [Footnote 186-8: Thus the Hamburg conflagration, combined with the bad harvests of 1841, raised the rate of interest in Mecklenburg for a long series of years. Similarly in Würtemburg, the many bad harvests from 1845 to 1853, which are said to have caused a deficiency of 50,000,000 florins. (Tübinger Zeitschr., 1856, 568.)] [Footnote 186-9: In bad times, state loans are usually effected at a disproportionally high rate of interest. This also operates momentarily on the general rate of interest, to the injury of persons engaged in business enterprises; who, by the very fact of the withdrawal of so much capital, become involved in an unfavorable competition. In the long run, indeed, the high or low rates of interest paid by national debts, in so far as the creditor cannot demand reimbursement, has no influence on the rate of interest usual in the country. Such debts as cannot be declared due assume the character of stationary capital, the value in exchange of which is determined by their yearly return, capitalized at the rate of interest usual in the country. (_Hermann_, Staatswirthschaftliche Untersuch., 223.)]