Baltimore fire. These losses, which amounted to $3,000,000,000, came at
a time when the world was just entering upon a period of great
industrial activity and needed all its capital. Much capital was
absorbed in the construction of railroads, industrial plants,
development of foreign industries, etc. These conditions brought about a
tightening of money rates in Europe and American financial centres;
consequently rates of interest went up. Commercial paper which brought
three to three and one-half per cent in New York in 1897 brought seven
per cent in 1907.
