BANKS AND THE CURRENCY.--But there were also domestic affairs which required attention. When the charter of the Bank of the United States (p. 224) expired in 1811, it was not renewed, for the party in power denied that Congress had authority to charter a bank. A host of banks chartered by the states thereupon sprang up, in hope of getting some of the business formerly done by the national bank and its branches. [Illustration: THE FIRST BANK OF THE UNITED STATES.] In three years' time one hundred and twenty new state banks were created. Each issued bank notes with a promise to exchange them for specie (gold or silver coin) on demand. In 1814, however, nearly all the banks outside of New England "suspended specie payment"; that is, refused to redeem their notes in specie. Persons having gold and silver money then kept it, and the only money left in circulation was the bank notes--which, a few miles away from the place of issue, would not pass at their face value. [4] Business and travel were seriously interfered with, and in order to provide the people with some kind of money which would pass at the same value everywhere, Congress in 1816 chartered a second Bank of the United States, [5] very much like the first one, for a period of twenty years. MANUFACTURES AND THE TARIFF.--Before the embargo days, trade and commerce were so profitable, because of the war in Europe, that manufactures were neglected. Almost all manufactored articles--cotton and woolen goods, china, glass, edge tools, and what not--were imported, from Great Britain chiefly. But the moment our foreign trade was cat off by the embargo, manufactures sprang up, and money hitherto put into ships and commerce was invested in mills and factories. Societies for the encouragement of domestic manufactures were started everywhere. To wear American-made clothes, walk in American-made shoes, write on American-made paper, and use American- made furniture were acts of patriotism which the people publicly pledged themselves to perform. Thus encouraged, manufactories so throve and flourished that by 1810 the value of goods made in our country each year was $173,000,000. When trade was resumed with Great Britain after the war, her goods were sent over in immense quantities. This hurt our manufacturers, and therefore Congress in 1816 laid a tariff or tax on imported manufactures, for the purpose of keeping the price of foreign goods high and thus protecting home manufactures. PROSPERITY OF THE COUNTRY.--Despite the injury done by British orders, French decrees, the embargo, non-intercourse, and the war, the country grew more prosperous year by year. Cities were growing, new towns were being planted, rivers were being bridged, colleges, [6] academies, schools, were springing up, several thousand miles of turnpike had been built, and over these good roads better stagecoaches drawn by better horses carried the mail and travelers in quicker time than ever before.