(no subject)

[timelets]

Following the capture of Washington in 1814, and in many cases it must be supposed welcoming the excuse, the banks outside of New England suspended specie payment. The elimination of any need to redeem notes greatly facilitated their issue. It alse led to a highly complicated set of discounts when the notes were forwarded for buying goods or paying debts. The notes of New England banks, since they were exchangealbe into gold o silver, were accepted at par therewith. The slightly less promising notes of New York were subject to a discount of 10 percent. The distinctly more garish notes of Baltimore and Washington banks had a 20 percent discount. Numerous notes from west of Appalachians were at a 50 percent discount. Galbraith, p.92.