Theoppositeistruewhenitfalls。Ifthevalueisequalto2，000，then5%=100；ifitisequalto1，000，then5%=50。Butthisdoesnotaltertheinterestrateinanyway。Therationalpartofthismatterismerelythatgreatermoneyaccommodationisrequiredwhenittakes£；2，000
tosellthesamequantityofcommoditiesthanwhenonly£；1，000arerequired。Butthismerelyshowsthatprofitandinterestarehereinverselyproportionaltoeachother。Forthelowerthepricesofthecomponentsofconstantandvariablecapital，thehighertheprofitandthelowertheinterest。Buttheoppositecanalsobeandisoftenthecase。Forinstance，cottonmaybecheapbecausenodemandexistsforyarnandfabrics；andcottonmayberelativelyexpensivebecausealargeprofitinthecottonindustrycreatesagreatdemandforit。Ontheotherhand，theprofitsofindustrialistsmaybehighpreciselybecausethepriceofcottonislow。Hubbard’stableprovesthattheinterestrateandthepricesofcommoditiesexecutecompletelyindependentmovements，whereasthemovementsoftheinterestrateadherecloselytothoseofthemetalreserveandtheratesofexchange。
TheEconomiststates:”Whenever，therefore，commoditiesareabundant，theinterestofmoneymustbelow。”Preciselytheoppositeobtainsduringcrises。Commoditiesaresuperabundant，inconvertibleintomoney，andthereforetheinterestrateishigh；inanotherphaseofthecyclethedemandforcommoditiesisgreatandthereforequickreturnsaremade，butatthesametime，pricesarerisingandbecauseofthequickreturnstheinterestrateislow。”Whenthey[thecommodities]arescarce，theinterestofmoneymustbehigh。”Theoppositeisagaintrueintheslackperiodfollowingacrisis。Commoditiesarescarce，absolutelyspeaking，notwithreferencetodemand；andtheinterestrateislow。
Inregardtostatement，itisprettyevidentthatanownerofcommodities，providedhecansellthelatteratall，willgetridofthematalowerpricewhenthemarketisgluttedthanhewouldwhenthereisaprospectoftheexistingsupplybecomingrapidlyexhausted。Butwhytheinterestrateshouldfallbecauseofthatisnotsoclear。
Ifthemarketisgluttedwithimportedcommodities，theinterestratemayriseasaresultofanincreaseddemandonthepartoftheownersforloancapital，inordertoavoiddumpingtheircommoditiesonthemarket。