Early  in  the  history  of  the  present  century
statutes  of  the  different  States  allowed  banks  to  be
established  for  the  issue  of  notes  payable  in  specie
on  demand.  These  banks  were  established  by  acts
of  the  local  Legislature,  which  limited  the  liability
of  the  shareholders.  Banking  then  was  quite  free,
and  all  individuals  could  carry  it  on,  provided  they
pursued  the  requirements  of  the  law.  But  under
this  system  there  was  great  fluctuation  in  value,
which  frequently  produced  bankruptcy  and  ruin.
Between  1811  and  1820  a  number  of  banks  went
out  of  business.  The  inflation  of  the  bank-notes
was  wonderful  between  1830  and  1837.  But  just
as  the  amount  had  increased,  it  decreased  corre-
spondingly during  the  following  six  years,  till  1843,
and  this  caused  the  ruin  of  many  financial  institu-
tions. Among  them  was  the  Bank  of  the  United
States,  the  renewal  of  whose  charter  had  been  de-
nied by  President  Jackson.
The  loss  in  the  value  of  stocks  and  property  of
all  kinds  was  enormous.  But,  great  as  it  was,  it
was  trifling  compared  with  the  injury  which  re-
sulted to  society  in  disturbing  the  elements  of
social  order,  and  in  causing  the  utter  demoraliza-
tion of  men  by  the  irresistible  temptation  to  spec-
ulation which  it  afforded,  and  by  swindling  to  re-


Ox^


/^7


'Ut-


THE  CITY  OP  CAMDEN.
455


tain  riches  dishonestly  obtained.  Another  crash
took  place  in  1857.
