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Rh raised in America, and since the coarser cotton fabrics imported into the United States were mostly made of India cotton. The principal argument urged by Clay and generally accepted by the Republicans was, that certain manufacturing industries must be built up and sustained for the safety of the country in time of war. Thus the tariff of 1816 was enacted, embodying substantially the scheme proposed by Dallas.

So far Clay had, as to definite measures of public concern, preserved a plausible consistency with the principles and measures advocated by him before the war of 1812. But he should not be spared the ordeal brought on by direct self-contradiction. The war had thrown the currency into great disorder. Upon the expiration of the charter of the United States Bank, the renewal of which Clay had helped to defeat, the notes of that institution were withdrawn, and the notes of state banks took their place. These banks multiplied very rapidly. In the years 1811, 1812, and 1813 one hundred and twenty of them went into operation, many with insufficient capital. The Secretary of the Treasury endeavored in vain to bring the banks into prudent coöperation. They began to refuse one another's bills. In 1814 specie payments were suspended. Reckless paper issues produced a corresponding inflation of prices. Under such circumstances Dallas finally saw no other way to restore order in the currency than by the promptest possible return to specie payments, and to this end