Econ history paper

THE END OFTHE ΠRsT B盘ⅣK OF TⅡE UⅣ rED sTnTEs · The banks20year charter expired in1811 · COngress refused to renew the Bank】 s charter by1vote · Banks stock:building and furnishings purchased by stephen Girard

。 0pened"Girards Banu in1812

· He a"owed trustees ofthe First Bank to use o仟 iCe space and vauIts to continue process ofVVinding down the c丨osure ofthe First Bank

sT血RT OF TⅡE sECoND B众 ⅢK OFTH瓦 UⅣr「ED sTnTEs · Federal Debt began to cIirnb、旧th the sta吐 ofThe Warof1812 · Congress cha吐 ered a neⅥ

`bank〕 The second Bank ofThe United states

· Began operations on January7:1817 · Prirnary focus was to promote a uniforΠ η currency by geuing banks to resume specie payments

sECoND BANK OF TⅡ E UNrrED sTnTEs · VVas sirn"arto the First Bank,but bigger

: 8凇犁;{』肾I】:I卩 %h σ the sha饿 o Headqua吐ered in Ph"adelphia

· Had oⅢ cesin29m刽°rc浞 ies · VVas poorIy managed and was on the verge ofinso丨 vency

。 lnsolVencV-Inab"ity ofthe debtorto ρay the debt

sECoⅣD BnNK OF TⅡE UⅣ ∏百D sTATEs · A仗er a congressiona丨 inquiry Langd9n Cheves Was broughtin as presidentin1819I and saved itfrom coⅡ apse · CheVes、″as succeeded by Nicholas Bidd丨 e in1822 · Andrew Jackson

o The Bank屺 s susceptibIe t° c°rmpuon and hord to control 〈> lntended to close the bank

BIDD凵巳VsJ且CKsoN众ⅢD TⅡE END OF THE sECOND BANK OFTⅡⅡ UNrED sTATEs · Jackson intended to cIose the bank,so E3iddIe used bank resources against him

。 Ignited a bitter struggle

· Jackson refused to renew the banks cha吐 erin1832 。 Pu"ed federal deposits仃 onη 1s Vaults

· The struggIe beMeen Jackson and Biddlel and Jacksons opposition ofthe bank from the beginning cripp丨 ed the bank and it vvithered untilthe Charter expired in1836

FRⅡⅡ BANK1NG(1♂s7-1868) · The Safety Fund insured tⅢ the1860〕 s。 · safety Fund did not get any new business a仗 er1838 ' · Enter Free BankingI anyone couId open a bank anywhere. · To get startedI a bankerjust needed to deposk government bonds`〃 ith state auditors, · By1860:18states had饣 ee banking:which、 〃ere a"rnode丨 ed after New York. · The safety Fund and Free Banking’ s rnotives、 ″ere to keep peopIe safe from chaotic fa"ures。

IssUEs众 ⅣD sOLUT10Ns . IssuEs∶

。 OVer100∞ 弼ferent Ame"oan ou″ encies to fo"oW, o Easy to countereⅡ

9 Hard to keep up Wth10000different currencies · sOLUTIONs∶

。 Take the poWerto ρ "nt a屺

y from banks

。 HaVe one type ofourrency that eVeryone knows and respects:w"ch沁 also harderto counterfe"

GRo眈 Il · Banks grew e× ponentia"y∶ in the1800s only1~3banks in Iarge cities · In1820there、″ere327commercia!banks haVing551In"Ⅱ on do"ars ofIoans · By1860there`″ere around1562banks across the nation`″ ith691.9Jη ⅡIion do"ars ofloans.