withdrawal of the deposits should be given, and the secretary, Mr.
Duane, refused to give them, saying the Bank was not insolvent. He was
dismissed and replaced by a more amenable secretary. The deposits were
withdrawn and placed in different State Banks, The Bank of the United
States was obliged to limit its discounts and loans, thus causing
trouble; however, the President wished at any loss to establish a
metallic circulation.

President Adams favored small paper notes of 25 to 10 cents, to the
extent of $1,000,000. From 1831 to 1837, $3,400,000 twenty-five cent
notes, $5,187,000 ten-cent notes, and $9,771,000 five-cent notes were
issued. To prevent an abuse of this it was necessary to resume a
metallic circulation immediately. In 1833 the amount of small notes
issued had already reached $37,000,000; in 1837 it became $73,000,000;
it even exceeded these figures; it was this circulation of small paper
notes that had to be made smaller than $120,000,000

Notwithstanding these frequent panics the national prosperity and the
increase of wealth were unquestionable and astonished all observers.

From 1817 to 1834 the national expenses diminished from $39,000,000 to
$24,000,000, decreasing even to $14,000,000 in 1835, while the income
grew to $37,000,000.

From 1826 to 1836 the condition of business, despite the panic of 1831,
grew easier. Industries, agriculture, and commerce were prosperous and
every enterprise was successful. Both in New Orleans and in New York
there was much building, and more than 1508 houses were erected between
January 1 and September 1, 1836. This general prosperity carried with it
the seeds of trouble.