when was the first bank established in the united states
First Bank of the United States The President, Directors and Company, of the Bank of the United States, commonly known as the First Bank of the United States, was a national bank, chartered for a term of twenty years, by the United States Congress on February 25, 1791. It followed the Bank of North America, the nation's first de facto central bank.
Second Bank of the United States The essential function of the bank was to regulate the public credit issued by private banking institutions through the fiscal duties it performed for the U.S. Treasury, and to establish a sound and stable national currency.[11][12] The federal deposits endowed the BUS with its regulatory capacity.[5][13]
Second Bank of the United States The efforts to renew the bank's charter put the institution at the center of the general election of 1832, in which the bank's president Nicholas Biddle and pro-bank National Republicans led by Henry Clay clashed with the "hard-money"[18][19] Andrew Jackson administration and eastern banking interests in the Bank War.[20][21] Failing to secure recharter, the Second Bank of the United States became a private corporation in 1836,[5][22] and underwent liquidation in 1841.[23]
Second Bank of the United States Resigning in January 1819,[54] Jones was replaced by Langdon Cheves who continued the contraction in credit in an effort to stop inflation and stabilize the bank, even as the economy began to correct. The central bank's reaction to the crisis—a clumsy expansion, then a sharp contraction of credit—indicated its weakness, not its strength.[55] The effects were catastrophic, resulting in a protracted recession with mass unemployment and a sharp drop in property values that persisted until 1822.[52][56] The financial crisis raised doubts among the American public as to the efficacy of paper money, and in whose interests a national system of finance operated.[57] Upon this widespread disaffection the anti-bank Jacksonian Democrats would mobilize opposition to the BUS in the 1830s.[57] The national bank was in general disrepute among most Americans when Nicholas Biddle, the third and last president of the bank, was appointed by President James Monroe in 1823.[58]