investments had been sought for above all others in London, and as
nothing happened during the first year to destroy that confidence, the
amount thus employed increased from $150,000,000 to $200,000,000 in
1840. In Pennsylvania $16,000,000 of European money was used in the Bank
of the United States, and $40,000,000 in those of the different States,
all of which was payable in two or three years.

Mr. Biddle had succeeded in sustaining the different States with the
National credit. He knew how to utilize the credit of American goods in
Europe, and drew from the London market an immense sum against exchange
long-time paper and paper payable in America. The Bank's paper fell from
4 to 6 per cent., and it was in such demand that the Bank of England
took it at 2 to 3 per cent. discount. But finally the market had all
that it could take. The attention of merchants was attracted to Mr.
Biddle's gigantic speculations, who paid paper in America and collected
hard money in London. Business interests complained about the
contraction in the market. The Bank's stock of cotton increased
steadily, and between June and July it rose from fifty-eight to ninety
million bales.

This speculation had already yielded $15,000,000 profit, but the market
was overloaded, and quotations could not keep up. The planters had made
a great deal by the advance in cotton, but the paper money remitted them
lost from 15 to 25 per cent. A panic was approaching. The cotton crop,
amounting to 400,000 bales, was one fifth less than was expected; they
awaited an advance in price, but the contrary occurred. The high prices
had brought out all the stored cotton; the factories had reduced their
work. Nevertheless bale after bale was forwarded to Liverpool and to
Havre. The sale in this last port in February and March, 1839, having
produced a loss, they continued to store it. As soon as Mr. Biddle was