During the War of 1812 (1812–1815) with the United Kingdom, the American government turned to these new banks for loans, encouraging a proliferation of paper money. This practice tended to shift specie into the more conservatively lending New England banking apparatus, depleting the newer banks of their hard money reserves. In response, the US government acquiesced in a suspension of specie payments from state banks in order to prolong the liberal wartime lending. The arrangement persisted in the war's aftermath, allowing old and new banks to profitably lend without regard to their hard money currency reserves. A speculative bubble formed as a result of these inflationary practices, threatening the health of the economy.