No data available for 1812, 1818, and from 1821 to 1829. Figures given for 1820 and 1829 are Gallatin's; those prior to 1820, Crawford's; for 1830 the statement is composite, and probably erroneous. great extent based upon actual figures, supplemented by estimates.

Official Reports after 1834

All are to a

No returns in 1834 from Del., N.J., S.C., Ga., Fla., La., Ark., Ky., Ohio,

Ind., Ill., Mich., Mo.

No returns in 1835 from Del., Md., N.C., Ark.

No returns in 1836 from N.J., R.I., Ark.

No returns in 1837 from Ark.

Incomplete returns in 1835 from S.C. and Ohio.

NOTE. The government deposits have never reached $10,000,000, and were, in the earlier period, never more than $6,000,000. After 1827 the

1 Finance Report, 1876, p. 193.

discounts included important amounts of domestic bills of exchange; in the last four years this item constituted from 25 to 40 per cent of the total. The item "due to banks" prior to 1828 was composed entirely of European credits, and that "due from banks" included large sums abroad in many of the years. Circulation is net, and includes "branch drafts."

NOTE.- In this table the specie is given for 1820 and 1830-1836 as usually accepted, although the movement abroad, as shown in the next table, does not warrant the conclusions. It should be borne in mind that from 1814 to 1817 specie was hoarded, hence not actually in use.

The notes of state banks are based on Gallatin's and Crawford's estimates, the latter appearing to have been excessive, the former, too conservative.

It is quite evident from the above table that a considerable amount of foreign capital came to the country after 1830. It was estimated that the debt abroad probably exceeded two hundred millions in 1835. At that time (no United States bonds being outstanding), the bonds of the states of New York, Pennsylvania, Ohio, Louisiana, Mississippi, Alabama, Florida, and Indiana were quoted in London; also certain bank shares and canal company bonds.

Conditions in 1837.

The states and the surplus.

CHAPTER VI

1837 TO 1849

BRIEFLY recapitulated the conditions affecting the currency early in 1837 were as follows: the Bank of the United States had acted as regulator of the circulation of state banks by refusing the notes of doubtful concerns and requiring the redemption of others; now, since its federal charter had expired and it was operating under a charter from the state of Pennsylvania, it necessarily ceased to perform that function and was merely a very largely capitalized state institution. This check upon the state bank issues having been removed and the enticing prospect of obtaining public deposits being held out by the Jackson administration resulted, as it did in 1811-1817, in a large increase in the number of state banks and an inordinate inflation of both notes and discounts. Many banks were conducting business without a dollar of actual capital paid in, and a majority were subject to no legal restriction. The distribution to the states of the surplus in the Treasury caused a number of the states to create "fiscal banks," and the others selected state banks as public depositories; thus this large sum was transferred from "pet" federal to "pet state depositories. These transfers naturally necessitated the calling of loans, for the federal depositories had loaned the funds, and a general curtailment of credits ensued, thereby involving domestic exchange in more or less confusion.

The states had undertaken various enterprises to employ the surplus, the first instalment of which was paid in January, 1837, and an era of unbounded speculation set in.