French indemnity, created an unusual demand for the precious metals in Europe, which rendered more difficult the reëstablishment of specie payments in America. The notes of the state banks outside of New England were depreciated, and these banks resisted the efforts of the Bank of the United States toward general resumption. A great tightness of money ensued. Times became pinching. Prices went down. A crisis broke out in 1819. Many business failures followed. The necessity of returning to more frugal ways of living was painfully felt. “Cheap money” theories sprung up. The distress was greatest where the local bank currency was most uncertain in its value. The manufacturing interest suffered heavily, but the difficulties under which it labored were only a part of those troubles always occurring when the business enterprise of a country has, by abnormal circumstances or artificial means, been overstimulated in certain directions, and then has to accommodate itself to entirely different conditions. The process of natural recuperation had, however, already begun, and that too on a solid basis, after the elimination of the unsound elements of business. But the cry for “relief” was still kept up, and a demand for “more protection” arose.
In 1818 the duty on iron was raised. In 1820 an attempt was made, and supported by Clay in an eloquent speech, for a general revision of the tariff, with a view to higher rates. The bill passed the House, but failed in the Senate. Now, in
