at the time fixed, and the banks, led on by the thirst of gain, issued
an unprecedented amount of bank notes. The general approbation brought
about a still further increase in their number: the bank notes of the
Bank of Philadelphia were at a discount of 80 per cent.; the others at
75 per cent, and 50 per cent., and metallic money disappeared to such an
extent that paper had to be used to replace copper coin. The
depreciation of fiat money raised the price of everything; this
superficial occurrence was looked upon as a real increase, and gave rise
to all the consequences that a general inflation of value could produce.
This mistake on the subject of artificial wealth made landed proprietors
desire unusual proceeds. The villager, deceived by a demand surpassing
his ordinary profits, extended his credit and filled his stores with the
highest-priced goods; and importations, having no other proportion to
the real needs than the wishes of the retailers, soon glutted the
market. Every one wished to speculate, and every one eagerly ran up
debts. Such was the abundance of paper money that the banks were alarmed
lest they could not always find an investment for what they
manufactured. It thus happened that it was proposed to lend money on
collateral, while the greatest efforts to bring about its redemption
were being made. This state of things lasted till the end of 1815, when
it was recognized that the paper circulation had not enriched the
community, but that metallic money had enhanced.

The intelligent portion of the nation comprehended that even where the
estimated value of property had been highest, the true welfare of
society had diminished. They learned too late the baleful effects of
this circulation of paper money; the greater part of the States and
cities had nothing to show for it.

A new class of speculators then appeared, trying to pass these worthless