primary sources

President Andrew Jackson to John Coffee,
February 19, 1832

Congress established the First Bank of the United States in 1791 to serve as a repository for Federal funds. Its charter expired in 1811, but in 1816 Congress created a Second Bank of the United States with a charter set to expire in 1836. By the 1830s the Bank had become a volatile political issue. Some, especially in the trans-Appalachian West, were suspicious of banks because they distrusted the paper money issued by them and because banks controlled credit and loans. To them, the Bank of the United States was the worst of them all: a greedy monopoly dominated by the rich American and foreign interests.

The Bank’s most powerful enemy was President Andrew Jackson. In 1832 Senator Henry Clay, Jackson’s opponent in the Presidential election of that year, proposed rechartering the Bank early. This bill passed Congress, but Jackson vetoed it, declaring that the Bank was "unauthorized by the Constitution, subversive to the rights of States, and dangerous to the liberties of the people." After his reelection, Jackson announced that the Government would no longer deposit Federal funds with the Bank and would place them in state banks. Supporters of the Bank in the Senate were furious and took the unprecedented step of censuring Jackson. The President held fast, however, and when the Bank’s charter expired in 1836, it was never renewed.

annotations

"First Bank of the United States." Ushistory.org. Independence Hall Association. Web. 20 Oct. 2009. .

The First Bank of the U.S was made because the government needed to pay off its debt from the Revolutionary war and to unify the states by using a single form of currency

Rescigno, David. "First Bank of the United States." Wikipedia. Web. 23 Oct. 2009. .

The First Bank was proposed by Alexander Hamilton, the Secretary of the Treasury , to the First session of the first Congress as an economic plan in 1790

Cowen David. "EH.Net Encyclopedia: First Bank of the United States." EH.Net | Economic History Services. Web. 02 Nov. 2009. .

The First Bank had eight branches nationwide. The banks start up funds was $10million. $8million from private sources and $2million from the government. 

"First Bank of the United States, Philadelphia." A View On Cities. Web. 19 Nov. 2009. .

Do to many different currencies the U.S lacked a stable financial environment.

EH.net

"First Bank of the United States." Travel and History. Web. 06 Nov. 2009. .

Jefferson opposed the bank because the constitution don't state the had the power to make it.

"StateMaster - Encyclopedia: First Bank of the United States." StateMaster - US Statistics, State Comparisons. Web. 19 Nov. 2009. .

James Madison disapproved of the bank because he don't want the U.S to follow the some path as England who had many federal banks.

"EH.Net Encyclopedia: First Bank of the United States." EH.Net | Economic History Services. Web. 24 Nov. 2009. .

The First Bank infused enough money to the new economy to provide the new nation with sufficient fund to give out loans to private citizens and to other banks.

intro paragraph

More then 90% of Americans use in some form a way of banking. The  First National Bank of the U.S was proposed by Alexander Hamilton to Congress, and after much debate Congress agreed to make the first federal bank.The First Bank of the U.S was made because the government needed to pay off it's debt from the Revolutionary War and to unify the state by using one standard form currency.