Although the largest vote against the tariff bill came from the South
and Southwest, twenty-three out of fifty-seven Representatives voted for
the bill. New England showed a prepondering opinion in favor of
protection: only ten out of twenty-seven Representatives opposed the
bill. The Representatives of the Middle States ranged themselves
emphatically on the side of protection; and with them stood the
Congressmen from Ohio and Kentucky.
The close of the war found the country with a badly disordered currency
and with a bankrupt treasury. Nowhere were the remedial efforts of
Congress needed more. The condition of the currency was due, in part at
least, to the failure of Congress in 1811 to perceive the regulative
influence of a national bank. By refusing to recharter the United States
Bank, Congress not only deprived the Treasury of an exceedingly valuable
fiscal agent during the war, but also threw the door wide open to
indiscriminate and unregulated state banking. Between 1811 and 1816 the
number of these state institutions increased from eighty-eight to two
hundred and forty-six, all of which exercised the right of issuing notes
with little or no restriction. Inflation followed inevitably. During the
blockade the banks of the Middle and Southern States suffered great
distress by the constant drain of specie to New England and abroad.
After the capture of Washington, practically all banks outside of New
England were forced to suspend specie payments. The country experienced
once more all the evils of a depreciated currency. Southern bank notes
were refused for deposit in Philadelphia banks. Notes of these
institutions in Philadelphia, in turn, were subject to a discount of
twenty-four per cent in Boston. Uncertainty and distrust demoralized
financial operations everywhere.
Public-domain text, read in full here on John Shaqi.
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