Nevertheless if little forced liquidation occurs; if there has been no serious overextension of credit during the previous period; if the maintenance of the existing price level, or of a slightly lowered one, would not impose too great a strain upon the banking system there would be no good cause to reduce wages.
Overproduction of tobacco, overextension of credit by British merchants, speculation in lands and tobacco, and inflated prices caused the tobacco economy to collapse. The crisis first appeared when several leading Glasgow merchants failed. They were unable to pay their own creditors and unable to call in money from Virginia.
A temporary readjustment due to overextension in certain economic and financial fields." From the other side of the table, Dick Hawkins laughed at him. "Where'd you pick up that line of gobbledygook, Peter?" he asked. Peter MacDonald came to his feet. "I don't have to put up with this sort of impudence," he snapped. Watson lurched to his own feet.