Two 1861 bond sales of $50 million each conducted through private banks went without a hitch, but bankers found the market for the 7.3% securities soft for a third bond issue. A general fear arose that the country's gold supply was inadequate and that the nation would soon leave the gold standard. In December runs on deposits began in New York City, forcing banks there to disburse a substantial part of their hard metal reserves. On December 30, 1861, New York banks suspended the redemption of their banknotes with gold. This spontaneous action was followed shortly by banks in other states suspending payment on their own banknotes and the U.S. Treasury itself suspending redemption of its own Treasury notes. The gold standard was thus effectively suspended.