Resumption.

Congress resolved that after February 20th, 1817, only specie, Treasury notes, and notes of specie-paying banks ought to be taken by the national Treasury. The banks refused to resume before July, 1817. New York passed a law imposing twelve per cent. interest on notes not redeemed, and the banks finally agreed to resume on February 20th, if the United States Bank would extend its discounts as they contracted. This was agreed to. The bank allowed $30,000,000 discounts the first year, and the Committee of the Pennsylvania Senate say that it more than made up for the contraction of the State banks, and that the resumption was only nominal.

The Western banks were still comparatively sound, silver being at six per cent. premium there, and fourteen per cent. in Philadelphia. The Southern banks had joined the inflation. There were fourteen banks in Virginia, North and South Carolina, and Georgia, in 1814, and twenty-three in 1815.

In 1817 a case at Richmond, after specie payments were resumed, gives an insight into the state of things. A man having presented ten one-hundred-dollar notes for redemption was refused. He could not get a lawyer to take a case against the bank for a long time. Finally, having obtained judgment, the sheriff was sent to collect. The president of the bank was taken before the court, but refused to pay. The bank was closed by the sheriff, but soon after opened and went on.

The inflation during this year was increased by the government paying off eleven millions of the public securities held by the bank. The note circulation at this time is estimated at one hundred millions. It is to be noticed that the banks were as recalcitrant about giving statistics, either to the Secretary of the Treasury or private investigators, as about any of their other duties, so that we have no trustworthy statistics.