A Study Of The First And Second Bank Of The United States(1790-1836)

The First and Second Bank of the United States were two important financial institutions in the early American history established by the federal government.The background of foundation,organization chart and function of both Banks are quite similar,and they all played an extremely important role in early American fiscal and financial system.The debates over both Banks were also significant in early American politics.At the very beginning of the federal government was established,in order to pay back huge debts and rebuild the public credit,Alexander Hamilton,the first Secretary of the Treasury,advised the Congress to established a Bank of the United States in December 1790.After the War of 1812,in order to restore the national economy,reorganize federal finances and protect native manufacturing,with the shift in mindset,President Madison advised the Congress to rebuild a Bank of the United States in December 1815.Following the steps of Alexander Hamilton,the United States begun to march toward to a modem commercial and industrial society in great strides.Although both Banks contributed greatly to American continued economic growth,violent debates over the foundation and renewal of them occurred,especially the Constitutionality of the Bank of the United States.Afterwards,President Andrew Jackson used this as an excuse to start a Bank War,and finally destroyed the Second Bank of the United States.Both Banks were trapped in party politics since its founding day,and influenced by the constitutional problem from beginning to end.Therefore,the destruction of the Bank of the United States was inevitable.