Its branches located at every important commercial point,
its credit was universally employed. It furnished exchange at almost a
nominal rate upon every commercial city of the world, and permeated
every transaction, giving health and vigor as the circulating fluid
does the animal system.
Suddenly to arrest and destroy this, was universal ruin. But to serve
the behest of party in a double form, it was crushed. But a substitute
was proposed by the party interested, and upon whom the responsibility
rested--the creation of State banks without limit, which were
recommended to discount liberally to the people, and supply the wants
created by the withdrawal of the capital and accommodations of the
national bank. This recommendation was literally and instantly obeyed.
In every State where the dominant party held control--and they did so
throughout the South and West--the legislatures made haste to create,
without limit, State banks, with power to flood the country with
irresponsible bank paper. Each assumed that it must supply not only its
portion, but the entire amount of the banking capital withdrawn, and
double or treble the circulation.
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