A new class of speculators then appeared, trying to pass these worthless bank notes: forgers of paper money became more active. In the midst of this disorder a National Bank, which should afford a solid basis for the paper circulation, was considered. Influenced by these difficulties, and in hopes of remedying them, the Secretary of the Treasury proposed to Congress, in September, 1814, a few days after suspension, to found a national bank, in order to re-establish metallic circulation, an end which the State banks had failed to accomplish. This project, which lent the national credit to the capital of the bank, was antagonized by a good many members who exaggerated its consequences; at the same time that they took more or less important sums in bank notes, or borrowed from the banks upon the nation's guaranty, in order to re-establish the public credit and to obtain means for prolonging the war. CAUSES OF THE PANIC OF 18l4.--The bank directors laid the blame upon the blockade of the ports, which, interfering with, indeed even preventing, the export of products, occasioned the outflow of the metals. The national loans to carry on the war also had their influence. From the beginning of hostilities until 1814 they increased to $52,848,000, distributed as follows: Eastern States, $13,920,000; New York, Pennsylvania, Maryland, and District of Columbia, $27,792,000; Southern and Western States, $11,186,000. Nearly all of this was advanced by the cities of New York, Philadelphia, and Baltimore. The banks made advances beyond their resources, augmenting their circulation in consequence. [Footnote: The cause of the crisis, according to the Committee of the Senate, was the abuse of the banking system; the great number and bad administration of the banks; and their speculations designed to advance their stock, and to distribute usurious dividends. When the Bank of the United States saw the danger that menaced it, it reduced its discounts and circulation. The circulation of the country banks fell from $5,000,000 to $1,300,000, and the total circulation from $10,000,000 to $3,000,000. Increase and Decrease Circulation in Pennsylvania. City Banks. Country. Total. 1814 ........ $3,300,000 $1,900,000 $5,200,000 1815 ........ 4,800,000 5,300,000 10,100,000 1816 ........ 3,400,000 4,700,000 8,100,000 1817 ........ 2,300,000 3,800,000 6,100,000 1818 ........ 1,900,000 3,000,000 4,900,000 1819 ........ 1,600,000 1,300,000 2,900,000 Number of Banks. Capital. Circulation. Specie. 1811 ... 88 $52,000 00 $28,000 00 $15,000 00 1815 ... 208 82,000 00 45,000 00 17,000 00 1816 ... 246 89,000 00 68,000 00 19,000 00]