In the infant stages of the United States, the Federalists, led by Alexander Hamilton, chartered the Bank of the United States. The bank was the first of its kind in the United States. It was modeled after the British banking system and was seen as necessary to the economic growth of both private and public businesses. However, the charter was not renewed because the Jeffersonian agrarians saw the bank as a threat to farmers.
After the War of 1812, the United States was in deep debt and plagued with dramatic inflation caused by the issuance of notes by numerous banks. The war department of the country was also in a state of bankruptcy, and had trouble paying debts as little as $30 (Taylor, 1). In order to strengthen the currency and fund the nation’s wars, the second Bank of the United States was founded. The bank held $35 million and the bank notes were backed by specie. However, corruption and administrative incompetence drove the bank close to bankruptcy. Langdon Cheves saved the bank by collecting its loans and the bank was stable once again. Nicolas Biddle became the president of the bank after Langdon resigned. Biddle soon brought the bank to “strength and prosperity” (Taylor, 6). However, when Biddle applied for the renewal of the bank charter in 1832, Andrew Jackson vetoed the bank and the bank was liquidated in 1841. Although Jackson vetoed the bank charter, the death of the bank could not be fully blamed on him.
any ideas on how to write my actual body? lol im so aimless. :S
