It was at this period that the old banking system was in the zenith of its power. The whole country was flooded with paper money of all kinds and of all denominations. Specie currency was almost entirely out of circulation, having been supplanted by private bills, worthless bank notes, and all other kinds of "shin plasters." This sort of currency was the occasion of innumerable disasters; all confidence was destroyed in the community, and pecuniary transactions were of course limited. The scarcity of silver was the subject of much merriment as well as the cause of grievous distress. At one time a specie Spanish dollar is advertised as a curiosity, and the citizens are invited to witness an exhibition of it; at another, a merchant promises to show, gratis, four silver Spanish coins to all who will call and purchase at his store. The tradesmen generally, however, took a more serious view of the matter; and on the 29th August, 1816, called upon the Merchants and Mechanics of the town "to assemble at the Union Hotel on Saturday afternoon at 6 P. M., to take into consideration the measures necessary to be adopted to check the circulation of private bills, &c." The result of this meeting, however, never transpired; and as the shin-plaster currency continued its baleful operations for many years afterward, it is to be supposed that the Merchants and Mechanics of Louisville either could not concert, or could not execute the aforesaid "necessary measures."
Notwithstanding, however, all the disadvantages accruing from this state of disordered currency, the year did not pass by without adding another to the increasing list of manufactories in the town. This other was an immense distillery, organized by a company formed in New England, and incorporated by the legislature of this State. It was called the "Hope Distillery," and had a capital of $100,000 dollars, with the liberty of increasing it to double that amount. This Company purchased one hundred acres of ground at the lower end of Main street, opposite to the commencement of Portland Avenue, and erected immense buildings thereon, intending to conduct their business on a more extensive scale than any before established in the United States. This enormous establishment however did not realize the expectations of its proprietors, and the project was abandoned. The buildings remained almost tenantless and useless for many years. They were finally burned.