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A Brief History of Panics and Their Periodical Occurrence in the United States by Clément Juglar
page 57 of 131 (43%)
advance dating from 1819, there was a reaction, a panic, and
liquidation. Here we cannot point out any of the causes which we have
indicated above; the growth of trade and the exaggeration of discount
sufficiently explain the difficulties of the situation.

In Pennsylvania in 1824 a bill was passed re-establishing the charters
of all the banks which had failed in 1814. In New York they thought of
banks alone; companies with a capital of $52,000,000 were formed. Ready
money had never been so abundant, if we can judge of it by the amount of
subscriptions and the great speculations in stocks.

Three millions were subscribed to the "New Jersey Protection Company" in
one day. But in July, when the decline on the London market was
reported, the want of hard money forced itself into notice. Exchange on
England rose from 5 per cent. to 10 per cent.; the discount on New
Orleans notes, from 3 per cent. became 50 per cent., and on the 4th of
December it had fallen back to 4 per cent. What fluctuation! What
disasters!

Mr. Biddle, the President of the United States Stock Bank, said that the
crisis of 1825 was the most severe that England had ever experienced,
superinduced as it was by the wild American speculation in cottons and
mines. Cotton cloth fell from 18 to 13 cents per yard; and out of 4,000
weavers employed in Philadelphia in 1825 not more than 1,000 remained.
The reaction of liquidation was experienced in 1826, and from 1827 money
was abundant.

EMBARRASSMENT OF THE LOCAL BANKS IN 1828 TO 1829.--Is it necessary to
mention these embarrassments? The trouble of 1828 affected only the
local banks and not at a11 those of the United States. The chief cause
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