The treaty of Ghent was concluded December 24, 1814, but the closing acts in the tragedy of the war were the battle of New Orleans, January 8, 1815, and the gallant capture of the British warships “Cyane” and “Levant,” by Captain Charles Stewart’s grand old frigate, “Constitution,” February 20, 1815.
On February 17, 1815, the treaty of peace between the United States and Great Britain was ratified by the Senate.
Pennsylvania’s finances were in such sound condition that only one small temporary loan was required to pay all expenditures incurred during the war. Business did not suffer, yet during the war period a cloud was gathering which soon was to have a serious effect on the financial situation in the State. The United States Bank, after twenty years of honorable and useful life, came to an end in 1811, and at a time when its services were needed by the government and the people.
The State banks were envious of the power of the larger institution, and in the failure to renew its charter their officers saw the opportunity to advance their personal ends.
The Legislature chartered State banks over the Governor’s veto, and again the State was flooded with paper money, as it had been during the Revolution, but the terrible consequences of that deluge had long since been forgotten. The excess of issue and lack of faith in them was soon reflected by rising prices. The banks had little or no specie for redeeming their notes. Soon many banks were without funds, hence were compelled to close their doors, and both the promoters and their victims were led into financial ruin.
Governor Snyder’s great friend, Editor John Binns, had the courage to maintain that, although individuals were thus made bankrupt, the State was benefited by the results of the banking acts, for, says he: “The titles to lands became more clear, settled and certain; strangers were induced to purchase and come to Pennsylvania and settle.” Quite a costly way to clear titles.
The downfall of the banking system was followed by general depression, and many men and business institutions were forced into involuntary bankruptcy. This was an unfortunate period in Pennsylvania history, and was not a condition single to this State alone.
Normal conditions were eventually restored and then followed an era of progress which was not marred for many years.
Throughout all this trying period Governor Snyder exhibited many splendid traits of character, and met every emergency with determined courage. He was not always able to control the Legislature, and his conduct in trying to stay the deluge of paper money was one of the most noteworthy of his three successful administrations.