markets, and greatly increased trade. While in the East the war brought depression in business, in Ohio it was just the reverse. It is true, though, that speculation followed the successful years subsequent to the war, and much distress and financial ruin resulted. A FTER the war of 1812 the tide of immigration poured into Ohio a large population. Speculation ran into the most extravagant excesses. Over-improvement and unrestrained invest The ment soon brought on the inevitable result. state banks which had issued excessive notes found themselves unable to redeem them on demand, and soon the currency began to depreciate. The condition that prevailed in Ohio obtained throughout the United States. After the War, this country was deluged with the importations of foreign manufacturers. The cost of the War was about $80,000,000 which had been paid by Government notes at a discount of twenty per cent. with a heavy burden of interest. There was no specie in circulation. One of the means of relief proposed was a Bank of the United States. The first Bank, the Charter of which expired in 1811, proved of great benefit to the country. And it was now argued that a similar institution was an imperative necessity to remedy the financial evils resulting from the War. Henry Clay who had heretofore opposed the renewal of the charter of the first Bank favored it at this time. John C. Calhoun who reported the bill "to incorporate the subscribers to the Bank of the United States of America," said that it would "put an end to the suspension of specie payments, and restore to the people the national currency that of gold and silver, alone recognized by the Constitution, of which they had for years been deprived." After an extended debate Congress incorporated the "Bank of the United States" in April, 1816 by an act which was promptly signed by President Madison. It was to be established in Philadelphia with branches over the country, and was chartered for twenty years. Its board of directors was to consist of twenty-five persons, five of whom were to be appointed by the President and confirmed by the Senate. Its capital stock was $35,000,000, one fifth of which was to be subscribed by the Government, and it was to be the depository of the public moneys, which it was to disburse without charge. These could be removed at any time by the Secretary of the Treasury. The Bank was to pay the Government one and a half million dollars for its charter. The Bank of the United States established two branches in Ohio, one at Cincinnati, January 28, 1817, and another at Chillicothe, October 13 of the same year. These branches issued notes extensively which had a tendency to depreciate the currency of the state banks. They also in due course of business acquired the notes of these banks in large quantities, and in calling upon them to redeem their paper, strained the solvency of those institutions. The result was that the notes of the state banks continued to depreciate, and many of them became valueless. This situation developed a clamor in opposition to the United States Bank that soon became widespread throughout the State. The politicians and the local banks, some of which were the "wildcat" institutions of a later day in embryo, joined in a popular crusade. In those days the banks formed the moneyed aristocracy of the |