Notwithstanding this discrimination the Banks decided not to resume
specie payment until the 1st of July, 1817.
In the meantime an immense speculation had taken place in its stock,
which was compromising for the Bank and for the credit of its Directory,
because several of its Directors appointed by the Government took part
in it. For example, it became customary to loan a very large amount of
money on the Bank's own stock, as much as $125 on each share of $100.
Thus more than the purchase price was loaned upon them: in furnishing
the means of paying for them by credit, speculation was aroused, and on
the 1st of September, 1817, the market price advanced to $156.50, at
which rate it continued until December, 1818, when it fell to $110.
At last the public perceived that the excessive issue depreciated the
bank-note circulation, and that a greater shrinkage was imminent.
An office for the payment of bank dividends was opened in Europe, so as
to increase the price of the stock and the speculation in it through
this facility, rather than for the permanent benefit of the institution.
Let us note here the short-sightedness of the Directors, who thought
they would stem the depreciation of their means of payment by persuading
all the banks to declare what was not true, that the bank notes were
worth par.
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