The Bank Of United States

910 WordsSep 9, 20154 Pages
The Bank of United States has a profound history indeed. The bank was established in 1791 to act as a storae place for federal funds as well as the government’s monetary agent. This bank was initially proposed by Alexander Hamilton and was granted a twenty-year charter by Congress. This would not go over very well with the Jeffersonians due to the fact they believed the bank represented dominance of mercantile over agrarian interest and unconstitutional use of federal power. (footnote) The first Bank of United States however did open in Philadelphia in 1791 with branches in eight different cities. The bank conducted general commercial business as well as acting on behalf of the government. The bank appeared to be a triumph as it was managed well and was actually very lucrative. Despite the success however, the bank drew the hostility of state banks as well as entrepreneurs, who determined that the bank’s budgetary heedfulness was constraining economic expansion. There are reported others who were alarmed with the actuality that precisely two-thirds of the bank stock was held by British interest, which they fought so hard for freedom during the American Revolution. When it was time for the renewal of the bank’s charter in 1811, the “forces that be” joined forces and succeeded in preventing the renewal. This is where the First Bank of the United States went out of operation. Then there was the War of 1812 and the problems that it brought by the United States trying
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