men--did the same.

In the second place, as the banks would not exchange specie for their
notes, people who did not know all about a bank would not take its bills
except at very much less than their face value. That is, a dollar bill
of a Philadelphia bank was not worth more than ninety cents in paper
money at New York, and seventy-five cents at Boston. This state of
things greatly increased the cost of travel and business between the
states, and prevented the government using the money collected at the
seaports in the East to pay debts due in the West.[1]

[Footnote 1: McMaster's _History_, Vol. IV., pp. 280-318.]

%290. The Second Bank of the United States.%--Lest this state of
affairs should occur again, Congress, exercising its constitutional
"power to regulate the currency," chartered a second National Bank in
1816, and modeled it after the old one. Again the parent bank was at
Philadelphia; but the capital was now $35,000,000. Again the public
money might be deposited in the bank and its branches, which could be
established wherever the directors thought proper. Again the bank could
issue paper money to be received by the government in payment of taxes,
land, and all debts.

The Republicans had always denied the right of Congress to charter a
bank. But the question was never tested until 1819, when Maryland
attempted to collect a tax laid on the branch at Baltimore. The case
reached the Supreme Court of the United States, which decided that a
state could not tax a corporation chartered by Congress; and that
Congress had power to charter anything, even a bank.

SUMMARY

1. The census returns of 1790 showed that population was going west
along three highways.

2. As a result of this movement, Vermont (1791), Kentucky (1792),
Tennessee (1796), and Ohio (1803) entered the Union.

3. The population of the country increased from 3,380,000 in 1790 to
7,200,000 in 1810; and the area from about 828,000 to 2,000,000
square miles.

4. The period 1790-1810 was one of marked industrial progress, and of
great commercial and agricultural prosperity. It was during this time
that manufactures arose, that many roads and highways and bridges were
built, and that the steamboat was introduced.

5. A national mint had been established. The charter of the National
Bank had expired, and numbers of state banks had arisen to take its
place. These banks had suspended specie payment, and the government had
been forced to char