the appearance, to indicate great prosperity.
But such prosperity is more specious than real. It would have been
better, probably, as the shock would have been less, if prices had
fallen sooner. At length, however, they fell; and as there is little
doubt that certain events in Europe had an influence in determining the
time at which this fall took place, I will advert shortly to some of the
principal of those events.

In May, 1819, the British House of Commons decided, by a unanimous vote,
that the resumption of cash payments by the Bank of England should not
be deferred beyond the ensuing February. The restriction had been
continued from time to time, and from year to year, Parliament always
professing to look to the restoration of a specie currency whenever it
should be found practicable. Having been, in July, 1818, continued to
July, 1819, it was understood that, in the interim, the important
question of the time at which cash payments should be resumed should be
finally settled. In the latter part of the year 1818, the circulation of
the bank had been greatly reduced, and a severe scarcity of money was
felt in the London market. Such was the state of things in England. On
the Continent, other important events took place. The French Indemnity
Loan had been negotiated in the summer of 1818, and the proportion of it
belonging to Austria, Russia, and Prussia had been sold. This created an
unusual demand for gold and silver in those countries. It has been
stated, that the amount of the precious metals transmitted to Austria
and Russia in that year was at least twenty millions sterling. Other
large sums were sent to Prussia and to Denmark. The effect of this
sudden drain of specie, felt first at Paris, was communicated to
Amsterdam and Hamburg, and all other commercial places in the North of
Europe.

The paper system of England had certainly communicated an artificial
value to property. It had encouraged speculation, and excited
over-trading. When the shock therefore came, and this violent pressure
for money acted at the same moment on the Continent and in England,
inflated and unnatural prices could be kept up no longer. A reduction
took place, which has been estimated to have been at least equal to a
fall of thirty, if not forty per cent. The depression was universal; and
the change was felt in the United States severely, though not equally so
in every part. There are those, I am aware, who maintain that the events
t