The Second Bank Of The United States

Essay by PaperNerd ContributorUniversity, Bachelor's June 2001

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Ond Bank The Second Bank of the United States "" A Victim of Its Own Success? The Second Bank of the United States was chartered in 1816 with the same powers and responsibilities as its predecessor. This bank, however, would not enjoy the same success as the first. Designed to control and stabilize the national currency, the Second Bank of the United States grew into a powerful political force before its eventual demise. As the Bank's success grew, so did its criticism and disapproval by the populace. Ultimately, the National Bank's ruin was brought upon itself by its own successes. The Bank grew so big that it became a source of conflict in the national government; a conflict which set the President of the National Bank against the President of the United States. Marked by one of the most prominent vetoes ever declared, the Bank of the United States' demise had dramatic effects on the future of the United States government.

The battle for the Second Bank altered the relationship between the electorate and the President, and reinforced the Jacksonian concepts of the President being an all-powerful force. The Second Bank of the United States' demise led the country into the "free banking era", a time when the only banks were those chartered by the states. The Second Bank of the United States led a short yet influential existence, whose failure was the result of its own success.

On January of 1817 the Second Bank of the United States was opened. It was given a twenty-year charter and located in Carpenter's Hall in Philadelphia. The demand for a new national bank was necessitated by the War of 1812 and the resulting debt burden which the war placed on the government. After the war, the economy was in a severe depression...