An office for the payment of bank dividends was opened in Europe, so as
to increase the price of the stock and the speculation in it through
this facility, rather than for the permanent benefit of the institution.
Let us note here the short-sightedness of the Directors, who thought
they would stem the depreciation of their means of payment by persuading
all the banks to declare what was not true, that the bank notes were
worth par.

On the 21st of February, still aiming at the same end, they announced
the resumption of specie payment. The State Banks, remembering the
embarrassment of the public, which for two years had paid an exchange of
6 per cent., persuaded themselves that few people would dare to ask for
large sums. They hoped to come to an understanding and to cause the
acceptance of a promise to pay upon a designated day.

We say "a promise to pay," for this was not a serious proposition,
inasmuch as foreign money and that of the United States had enjoyed a
higher market value for a long time.

The depreciation of the bank notes might result just as well, from the
fear of the public's enforcing its rights, as from a refusal of the
banks to make good their promises. This understanding was not, properly
speaking, a resumption of specie payment, but rather a kind of humbug.

In January the banks of New York, Philadelphia, Baltimore, Richmond, and
Norfolk decided to resume specie payment on the 20th of February,
provided the balance showing against them was not demanded by the Bank
of the United States before discounts became $2,000,000, at New York, as
much in Philadelphia, and $1,500,000 in Baltimore; and these conditions