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Early Michigan Early Banks Of Michigan
At the commencement of the year 1838, then, a most extraordinary state of affairs existed. With a general depression of all kinds of business, with inflated prices, with a depreciated paper currency which the makers were unable to redeem, the community felt sorely the pressure of the heavy and almost universal indebtedness of its individual members ; confidence in business men and in the success of business transactions, however well managed, gave way, and a spirit of despondency with some and of desperation with others, succeeded. The masses still looked to an increase in a paper circulation as an unfailing remedy for all these evils. Under the general banking law, the door was open and all invited to enter. By its provisions all were free to establish banks ad libitum, and through them to furnish a currency in bank bills; and under the act authorizing a suspension of specie payments, they were released from obligation to redeem them on presentation in the constitutional currency of the country. What a temptation was this for the unscrupulous speculator—the adventurer, dreaming only of wealth, and ready to hazard all in pursuit of it, and the enterprising business man, who found himself ruined and burdened with debts!
Michigan
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