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116 istration was injuring the business of the country. But when it saw that the state banks were using this opportunity for efforts to draw its custom to themselves, it expanded again in order to keep its hold upon business.

But the prospect of the final downfall of the United States Bank, and the hope of getting for themselves some of the public deposits, encouraged greatly the establishment of new state banks. In 1830 there were about 330 in the country; there were 558 in 1835, and no less than 634 in 1837. Their capital rose from 61 millions in 1830 to 231 millions in 1835, and nearly 291 millions in 1837; their loans, from 200 millions in 1830 to 365 millions in 1835, and 525 millions in 1837; their note circulation, from 61 millions in 1830 to 103 millions in 1835, and to 149 millions in 1837, with respectively 22 millions, 44 millions, and 38 millions of specie behind the paper. The convertibility of the bank-note circulation was therefore very uncertain; the specie basis of many of the banks for their note issues ludicrously small. There was a perfect mania for establishing banks. As Niles reports, a bank was looked upon as a panacea to cure all kinds of troubles, as if it were the creation of capital by enchantment.

The expansion of the currency and the inflation of prices went hand in hand under the influence of unbridled speculation and reckless debt-making. The characteristic feature of the period was the speculation in wild lands. While the price of