The establishment of what became known as the Second Bank of the United States can be traced to the actions of several men John Jacob Astor, David Parish, Stephen Girard, and Jacob Barker; Alexander Dallas [become secretary of the Treasury in 1814] and Rep. John C. Calhoun of South Carolina.
A petition signed by businessmen from New York City was sent to Congress in 1814 urging them to create a second national bank and twice that year Calhoun introduced bills to create a bank, though neither passed. President James Madison supported the creation of a second Bank as a way to finance the war with Britain but with peace negotiations he pulled back. However, the war had hurt the economy and in April 10, 1816 [14 Stats. 266] Madison signed the act establishing the second Bank of the United States with a 20 year charter.
In January 1817 the Bank opened for business opened in Philadelphia with William Jones as its first president though he resigned that same year. He as followed by Langdon Cheves and in 1823 Nicholas Biddle. Much of the structure and mission differed little from its immediate predecessor but its reach was much broader—it ended up with 25 branches throughout the country. The first few years there was hostility toward the bank but that diminished somewhat. However, the fight over the Bank began again in 1828 with the election of Andrew Jackson as president, though it really heated up when he was reelected in 1832.
Beginning in 1832 a series of events signaled the end for the Bank - often referred to as the Bank War. On July 10, 1832 External President Andrew Jackson vetoed the re-chartering of the Bank, in 1833 federal deposits were removed, in April 1834, Congress could not override the President's veto, and by 1836 it was over. In February 1836, the bank became a private corporation under the Commonwealth of Pennsylvania law. External
There would be no central bank until after a commission investigating the Panic of 1907 led to the creation of the Federal Reserve System in 1913. One lasting impact of the Second Bank came in 1819 when the Supreme Court decided in McCulloch v. Maryland [17 U.S. [4 Wheat.] 316 [1819]]. This case was focused around the question of whether the state could tax the federal government. The answer according to the decision was no, but the decision ultimately established that the "Necessary and Proper" Clause of the Constitution gives the federal government certain implied powers not explicitly enumerated in the Constitution, and that the American federal government is supreme over the states.
- Entertainment & Pop Culture
- Geography & Travel
- Health & Medicine
- Lifestyles & Social Issues
- Literature
- Philosophy & Religion
- Politics, Law & Government
- Science
- Sports & Recreation
- Technology
- Visual Arts
- World History
- On This Day in History
- Quizzes
- Podcasts
- Dictionary
- Biographies
- Summaries
- Top Questions
- Week In Review
- Infographics
- Demystified
- Lists
- #WTFact
- Companions
- Image Galleries
- Spotlight
- The Forum
- One Good Fact
- Entertainment & Pop Culture
- Geography & Travel
- Health & Medicine
- Lifestyles & Social Issues
- Literature
- Philosophy & Religion
- Politics, Law & Government
- Science
- Sports & Recreation
- Technology
- Visual Arts
- World History
- Britannica Classics
Check out these retro videos from Encyclopedia Britannica’s archives. - Demystified Videos
In Demystified, Britannica has all the answers to your burning questions. - #WTFact Videos
In #WTFact Britannica shares some of the most bizarre facts we can find. - This Time in History
In these videos, find out what happened this month [or any month!] in history. - Britannica Explains
In these videos, Britannica explains a variety of topics and answers frequently asked questions.
- Buying Guide
Expert buying advice. From tech to household and wellness products. - Student Portal
Britannica is the ultimate student resource for key school subjects like history, government, literature, and more. - COVID-19 Portal
While this global health crisis continues to evolve, it can be useful to look to past pandemics to better understand how to respond today. - 100 Women
Britannica celebrates the centennial of the Nineteenth Amendment, highlighting suffragists and history-making politicians. - Britannica Beyond
We’ve created a new place where questions are at the center of learning. Go ahead. Ask. We won’t mind. - Saving Earth
Britannica Presents Earth’s To-Do List for the 21st Century. Learn about the major environmental problems facing our planet and what can be done about them! - SpaceNext50
Britannica presents SpaceNext50, From the race to the Moon to space stewardship, we explore a wide range of subjects that feed our curiosity about space!