.4. L. Bishop — The State Works of Pennsylvania. 213 



iug the security of their loans. But of no less importance than this 

 was the influence of the general financial condition of the country. 

 Both at home and abroad, money was abundant and the expansion 

 of state and individual credits was exceedingly popular.* The 

 spirit of speculation was by no means confined to this state, but it 

 was raging all over the country. Banks were created in great num- 

 bersf and became the instruments of the expanding credit mania. 

 Under these conditions, Pennsylvania had no trouble to sell her 

 stock profusely to provide means for completing her extensive 

 system of public improvements. Moreover, the funds thus secured 

 were from time to time freely drawn upon to pay the interest on 

 previous loans. 



As a result of this policy, when the main line and lateral works 

 had been completed and were coming into general use in 1835, 

 the state debt was $24,589,743.32.$ The greater part of this 

 ($22, 420,003. 32)§ had been incurred in the construction of canals 

 and railways. The whole of this sum had been borrowed at 5 per 

 cent, and had yielded to the treasury in premiums on the respective 

 loans the sum of $1,356,653. 36. || Moreover in this year, the ordi- 



* "States, banks, corporations and individuals all moved forward in har- 

 monious unison, borrowing all they eould and wherever they could, without 

 reference to their future ability and means of repayment." — Extract from 

 Governor Porter's Message, in J. H. Rep., 1840, 11, p. 19. 



"During the ten years following 1820, public stocks were authorized in 



the various states to the amount of $26,000,000, of which nearly $18,000,000 



were held against the three states, Xew York, Pennsylvania and Ohio. 



Between the years 1830 and 1835, $40,000,000 were added to the obligations 



of the states, while the three years previous to 1838 witnessed an increase 



of local indebtedness to the amount of $107,000." — Adams, Public Debts, 



p. 318. 



f Banks in the United States. 



Loans and 

 Number Capital Discounts Circulation Specie 



1820 303 $137,110,611 $189,2.52,422 $ 44,863.344 19,820,240 



1830 330 145,192,268 200,451,214 61,323,896 22,144,917 



1837 634 290,772,091 525,115,702 149,185,890 37,915,340 



— See Governor Porter's message of January 8th, 1840, in J. H. Rep., 1840, 

 II, p. 15. 



I See Governor Shmik's message in Exec. Docs., 1845, p. 6. 



§ See Governor Wolf's aimual message of Dec. 2d, 1835, in J'. H. Rep., 

 1835-36, II, p. 11. 



]|Ibid., p. 11. 



Trans. Conn. Acad., Vol. XIII. 16 Nov., 1907. 



