210 A. L. Bishop — The State Woi-ls of Pennsylvania. 



gency was followed by the universal suspension of 1837. This was 

 not without eifect upon the state's credit abroad. For a large pro- 

 portion of the state's stock was held by foreign stockholders,* and, 

 oAving to the generally deranged state of credit in 1837, the August 

 interest payment was delayed. This was inevitable since the 

 United States Bank of Pennsylvania, which Avas now the state's 

 banker, had failed on the 18th of May. Most of the foreign credi- 

 tors usually authorized the bank to transmit the amounts due to 

 them semi-annually to Baring Brothers and Company,"}* who 

 credited these sums to their respective accounts in London. Remit- 

 tances Avere made customarily in bills of exchange, but at this time 

 no satisfactory bills could be procured. | Accordingly, it was not 

 until the 16th of December that the August interest Avas for- 

 AA^arded.§ 



This delay occurring at the very time AA'hen financial embarrass- 

 ment was becoming general, and when the stocks of numerous states 

 were flooding the foreign markets, || was soon followed by a decline 

 of the state's credit abroad. By 1839, Pennsylvania's 5 per cent, 

 stocks, which, in 1833, had sold in Europe for 115, would not sell 

 at all.|[ Before the close of the year 1838, the extraordinary rcA'- 



* In July, 1842, according to a letuni submitted to the Senate of Penn- 

 sylvania by the Auditor General, the distribution of the state debt Avas as 

 follows: — -Held by citizens of Pennsylvania, $9,635,613.47; by citizens of 

 other states of the United States, $1,080,537; by subjects of Great Britain, 

 $20,026,458; by subjects of other foreign states, $3,711,748; total, 

 $34,454,356.47. 



f Tliis firm Avas the agent for a large pereent.age of the foreign holders of 

 Pennsylvania's stocks. 



$ See J. H. Rep., 1837-38, II, pp. 33 and 82. 



§ Tlie bank allowed interest at 4 per cent, for four months on the delayed 

 interest payment and 12* per cent, premium Avas paid for the bill of exchange 

 on London. See J. H. Rep., 1840, II, p. 45. 



II The amomit of the state stocks authorized to be created by eighteen 

 states, in each period of five years, from 1820 to 1838, was as follows: — 

 From 1820 to 182.5, $12,790,728; 1825 to 1830, $13,679,689; 1830 to 1835, 

 $40,002,769; 1835 to 1838 (say 3^ yrs.), $108,223,808; total $174,696,994. 



The above is taken from Governor Porter's message of January 8th, 1840, 

 in J. H. Rep., 1840, II, p. 17, and agrees substantially Avith footnote (*), 

 on page 213. Note that the greater proportion of the stocks A\'as created 

 after 1835., Nearly two-thirds of Pennsylvania's stocks were held abroad 

 and large quantities of those of other "states were similarly held. 



^ See Govei-nor Porter's message for Jan. 8th, 1840, in J. H. Rep., 1840, II, 

 p. 19. See also Governor Ritner's message for December 27th, 1838, and 

 Hunt's Mer. Mag., XX, 1849, p. 261. 



