In early February, he began to grow concerned with what he saw developing with the Bank issuing so much credit so quickly, and he knew it was destined for failure. A letter he wrote to the Bank of New York shows that he issued a request that every bank in the country should change its policy on distributing bank notes and loans to “within reasonable dimensions,” or else the whole house will come crumbling down (Cowen, 1053). If he was writing a letter to the Bank of New York and since he mentioned “every existing bank,” Cowen makes the assumption that the Bank of the United States also received a letter from Hamilton. There are no records of the Bank of New York’s balances like there are for the Bank of the United States, so their reaction to Hamilton’s request is unknown, but the Bank of the United States made a quick and drastic change to their policy. Had they eased out of it slowly over the course of months, it might have worked out better, but doing it so quickly resulted in the market
In early February, he began to grow concerned with what he saw developing with the Bank issuing so much credit so quickly, and he knew it was destined for failure. A letter he wrote to the Bank of New York shows that he issued a request that every bank in the country should change its policy on distributing bank notes and loans to “within reasonable dimensions,” or else the whole house will come crumbling down (Cowen, 1053). If he was writing a letter to the Bank of New York and since he mentioned “every existing bank,” Cowen makes the assumption that the Bank of the United States also received a letter from Hamilton. There are no records of the Bank of New York’s balances like there are for the Bank of the United States, so their reaction to Hamilton’s request is unknown, but the Bank of the United States made a quick and drastic change to their policy. Had they eased out of it slowly over the course of months, it might have worked out better, but doing it so quickly resulted in the market