The bank was overseen by a board of twenty-five directors. The size of its capitalization made the Bank not only the largest financial institution, but the largest corporation of any type in the new nation. Many of the initial investors were foreign, a fact that did not sit well with many Americans, even though the foreign shareholders could not vote. When the bank subscriptions went on sale in July , they sold so quickly that many would-be investors were left out, prompting fierce bidding in the secondary market for scrips.
The bank also managed the U. Although the U. To avoid inflation and the appearance of impropriety, the Bank was forbidden from buying U. In addition to its activities on behalf of the government, the Bank of the United States also operated as a commercial bank, which meant it accepted deposits from the public and made loans to private citizens and businesses.
Its banknotes paper currency most commonly entered circulation through the loan process. It extended more loans and issued more currency than any other bank in the nation because it was the largest financial institution in the United States and the only institution holding federal government deposits and possessing branches throughout the nation.
Banknotes issued by the Bank of the United States were widely accepted throughout the country. And unlike notes issued by state banks, Bank of the United States notes were the only ones accepted as payment of federal taxes. Unlike modern central banks, the Bank of the United States did not set monetary policy as we know it today.
The Second Bank of the United States, however, could not prevent downturns in the economy. Its actions partly resulted in the Panic of , as well as the Banking Crisis of A deep distrust of banks developed among white Americans.
Andrew Jackson used this hatred to help him build a coalition that elected him President of the United States in Toggle navigation. Willing possessed strong credentials as he had been president of the Bank of North America, Mayor of Philadelphia, the Secretary to the Congress of delegates at Albany, and a Judge of the Supreme court of Pennsylvania.
As the day-to- day manager, the role of bank cashier was also important. At the head office in Philadelphia, John Kean was appointed the cashier; however, the most noteworthy was George Simpson, who held the post from On December 12, , the Bank opened for business in Philadelphia.
The customers were merchants, politicians, manufacturers, landowners, and most importantly, the government of the United States. The Banks notes circulated countrywide and therefore infused a safe medium of paper money into the economy for business transactions. The sheer volume of deposits, loans, transfers and payments conducted by the Bank throughout the country made it far and away the single largest enterprise in the fledgling nation.
Profits, however, were moderate during the operation of the Bank because its directors opted for stability over risk taking. The Bank had an enormous impact on the economy within two months of opening its doors for business by flooding the market with its discounts loans and banknotes and then sharply reversing course and calling in many of the loans.
Although the added liquidity initially helped push a rising securities market higher, the subsequent drain caused the very first U. The largest speculator caught in the financial crisis was William Duer. When he went insolvent in March , the markets were temporarily paralyzed.
Yet incidents like the Panic of and the script bubble would be remembered for many years by opponents of the Bank who were still in steadfast opposition to the Hamilton inspired institution. The rest of Bank years were never as tumultuous as the events surrounding the Panic of Rather during its twenty-year lifespan the Bank performed many mundane pecuniary functions for its customers. The largest customer, the government, had many notable interactions with the Bank.
In its earlier days, the Bank had lent heavily to its largest customer. At this point Willing and the other directors became alarmed and demanded the Government repay part of its loan. Since Government credit was still weak, the Treasury resorted to selling shares of its Bank stock.
The sales began in and ended in With the proceeds from the sales of stock, the government repaid the Bank. The Bank performed certain functions that today are associated with central banking. First, the Bank attempted to regulate state banks by curtailing those that had overissued their bank notes. Second, the Bank, in coordination with the Treasury department, discussed economic conditions and attempted to promote the safety of the entire credit system.
Third, while the Philadelphia board gave each branch autonomy respecting lending to individuals, the Bank tried to coordinate aggregate policy changes, whether a loosening or tightening of lending credit, across the entire network of branches. The anti-Bank forces had remained steadfast in their opposition to the Bank since its inception in By the time of the renewal debate in Congress, the Federalists were no longer in control.
The Democrats now held the majority and were ready to act against the Federalist conceived institution. The Federalists supported renewal and were joined by two notable Democrats who crossed party lines, Treasury Secretary Albert Gallatin, who believed in the usefulness of the institution, and then President Madison, who had switched camps with respect to the Bank issue because he believed the matter had been settled by precedent. Live TV. This Day In History. History Vault.
Recommended for you. Tito Visits the United States. Bank War. Emperor Hirohito Visits the United States. Mafia in the United States. Bank Run The stock market crash of October left the American public highly nervous and extremely susceptible to rumors of impending financial disaster. Mafia in the United States The American Mafia, an Italian-American organized-crime network with operations in cities across the United States, particularly New York and Chicago, rose to power through its success in the illicit liquor trade during the s Prohibition era.
A Look Back at Segregation in the United States Segregation is the practice of requiring separate housing, education and other services for people of color. Citizens United vs.
0コメント