aware of this stoppage he sought to hide the difficulty by extending his
business. He proposed to start a new bank in New York (the other had
headquarters in Philadelphia) with a capital of $50,000,000. He once
more issued long-time paper, and bought with American paper canals,
rail-roads, and shares which he threw upon the English market. This
lasted until the long-time paper lost 18 per cent. in America, and until
American exchange and investments were no longer received on the
Continent.

The Parisian house of Hottinguer like its other agents, sold little
until the first of July, and when it saw that the effort to monopolize
cotton could not succeed, fearing to continue this gigantic operation,
it declared that it employed too much capital. In the midst of all this,
some new bills of exchange reached Paris without consignment of
corresponding value; and the house of Hottinguer protested.

Hope of Amsterdam discontinued his connection. The London agent called
upon the Bank of England for help, which was granted upon the guaranty
of certain firms of that place and a deposit of good American paper.

Rothschild accepted the refused bills of exchange, after having found
out that a sum of L400,000 would suffice for Mr. Biddle's agent; these
L400,000 offered as a guaranty consisted of Government stock, and of
shares in railroads, canals, and banks. This agreement was not given out
freely, which still further increased the feeling of distrust. A crisis
in which $150,000,000 of European capital were destined to be engulfed
was rapidly approaching.

BREAKING OUT OF THE PANIC OF 1839.--The English papers had already
warned the people to be distrustful. The _Times_ said it was