dispose of it otherwise, in which case he was to notify Congress.

Neither the Directory nor Congress could suspend payment of the bank
notes, discounts, or deposits: such refusal carried a right to 12 per
cent. interest. In exchange for this charter the Bank was to give
$1,000,000, to the Government in three instalments.

The charter was exclusive during its life, excepting in the District of
Columbia, where banks might be authorized, provided their capital did
not exceed $6,000,000. The Bank did not open at once, for it sent an
agent to Europe to look up bullion. Between July, 1817, and December,
1818, it thus procured $7,311,750, at an expense of $525,000. On the
20th of February, 1817, it was decided that, excepting gold and silver
and Treasury notes, no notes would be received at the Government
Treasuries, save such as were payable to the banks in hard money.
Notwithstanding this discrimination the Banks decided not to resume
specie payment until the 1st of July, 1817.

In the meantime an immense speculation had taken place in its stock,
which was compromising for the Bank and for the credit of its Directory,
because several of its Directors appointed by the Government took part
in it. For example, it became customary to loan a very large amount of
money on the Bank's own stock, as much as $125 on each share of $100.
Thus more than the purchase price was loaned upon them: in furnishing
the means of paying for them by credit, speculation was aroused, and on
the 1st of September, 1817, the market price advanced to $156.50, at
which rate it continued until December, 1818, when it fell to $110.

At last the public perceived that the excessive issue depreciated the
bank-note circulation, and that a greater shrinkage was imminent.