The Panic of 1819 (Murray N. Rothbard)

The Panic of 1819 (Murray N. Rothbard)
- Highlight Loc. 224-28  | Added on Tuesday, October 11, 2011, 09:31 PM

Bank of the United States and the Treasury to treat the notes of nominally resuming banks as actually equivalent to specie. The Bank thereby accumulated balances and notes against the private banks without presenting them for redemption. Many of these notes were original Treasury balances which had been deposited with the Bank but not claimed from the state banks. In New England, on the other hand, both the private banks and the branches of the Bank of the United States pursued a conservative policy. Indeed, they were forced to contract, as the New England branches of the Bank were continually forced to payout specie on the expanded note issue of the western and southern branches,