The Committee appointed by the Senate of Pennsylvania reported on the
29th of January, 1820, that, to prevent a bad administration of the
banks, it was necessary:

1. To forbid them to issue more than half of their capital in notes.

2. To divide with the State all dividends in excess of 6 per cent.

3. Excepting the president, that no director should be re-appointed
until after an interval of three years.

4. To submit to the State's inspection the bank's business and books.

From this period excessive profits and losses ceased on the part of the
American banks. The change of directory of the National Bank, called
forth by the unfortunate experience of 1818, was the beginning of a very
fortunate epoch. As was always the case, business affairs resumed their
usual course when liquidation ceased. Among the various causes assigned
for the panic, the increase of import duties had to be pointed out, and
the decrease of the Public Debt which was reduced between 1817 and 1818
more than $80,000,000. It was impossible to turn any portion of the
public deposits in proper time either into Federal stock or such other
forms of value as its creditors might demand, without staking or
breaking down any respectable institution whatever. But these seem to be
only secondary causes.

Panic of 1825 to 1826.--In 1824 in Pennsylvania there was a new rage for
banks, and in 1825 there was a repetition of the marvellous days of
1815. American banking bubbles have always been exactly similar to the
English South Sea bubble, and to Law's bank in France. In July, after an