The Bank was forced to demand that the private commercial banks that had been lent money in the form of "fiat" paper must now repay in specie, which was then sent to Europe to pay the government's creditors.
The Bank was forced to demand that the private commercial banks must now repay in specie. These private commercial banks had been lent money in the form of "fiat" paper. Specie was then sent to Europe. This was to pay the government's creditors.