Second Bank of the United States

Bank of the United Statesnational bankUnited States BankSecond National BankSecond Banks of the United StatesSecondSecond Bank1816bankbank veto
The Second Bank of the United States, located in Philadelphia, Pennsylvania, was the second federally authorized Hamiltonian national bank in the United States during its 20-year charter from February 1816 to January 1836.wikipedia
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Nicholas Biddle (banker)

Nicholas Biddle
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" Andrew Jackson administration and eastern banking interests in the Bank War. 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.
Nicholas Biddle (January 8, 1786 – February 27, 1844) was an American financier who served as the third and last president of the Second Bank of the United States (chartered 1816–1836).

James Madison

MadisonPresident MadisonPresident James Madison
Modeled on Alexander Hamilton's First Bank of the United States, the Second Bank was chartered by President James Madison in 1816 and began operations at its main branch in Philadelphia on January 7, 1817, managing twenty-five branch offices nationwide by 1832. Albert Gallatin, former Secretary of the Treasury under Thomas Jefferson and James Madison, wrote in 1831 that the BUS was fulfilling its charter expectations.
The war convinced Madison of the necessity of a stronger federal government, and he presided over the creation of the Second Bank of the United States and the enactment of the protective Tariff of 1816.

Bank War

conflict over the National Bankdestroy the institution by 1833dismantling
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" Andrew Jackson administration and eastern banking interests in the Bank War.
The Bank War refers to the political struggle that developed over the issue of rechartering the Second Bank of the United States (B.U.S.) during the presidency of Andrew Jackson (1829–1837).

Andrew Jackson

JacksonJacksonianPresident Andrew Jackson
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" Andrew Jackson administration and eastern banking interests in the Bank War.
In Congress, Henry Clay led the effort to reauthorize the Second Bank of the United States.

Philadelphia

Philadelphia, PennsylvaniaPhiladelphia, PACity of Philadelphia
The Second Bank of the United States, located in Philadelphia, Pennsylvania, was the second federally authorized Hamiltonian national bank in the United States during its 20-year charter from February 1816 to January 1836.
Other national historic sites include the homes of Edgar Allan Poe and Thaddeus Kosciuszko, early government buildings like the First and Second Banks of the United States, Fort Mifflin, and the Gloria Dei (Old Swedes') Church.

Bonus Bill of 1817

Bonus Bill1817 Bonus Billa fund for internal improvements
Subsequent efforts by Calhoun and Clay to earmark the bank's $1.5 million establishment "bonus", and annual dividends estimated at $650,000, as a fund for internal improvements, were vetoed by President Madison, on strict constructionist grounds.
The Bonus Bill of 1817 was legislation proposed by John C. Calhoun to earmark the revenue "bonus", as well as future dividends, from the recently established Second Bank of the United States for an internal improvements fund.

1832 United States presidential election

18321832 presidential election1832 election
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" Andrew Jackson administration and eastern banking interests in the Bank War.
Sergeant, a prominent Philadelphia attorney with connections to the Second Bank of the United States and a reputation as an opponent of slavery, provided the ticket with geographical balance.

Panic of 1819

18191819 to 1821, which was one of the most severe1819–20
When the U.S. markets collapsed in the Panic of 1819—a result of global economic adjustments —the central bank came under withering criticism for its belated tight money policies—policies that exacerbated mass unemployment and plunging property values.
The Second Bank of the United States (SBUS), itself deeply enmeshed in these inflationary practices, sought to compensate for its laxness in regulating the state bank credit market by initiating a sharp curtailment in loans by its western branches, beginning in 1818.

Langdon Cheves

Resigning in January 1819, 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.
He was a U. S. Representative from 1810 to 1815, served as Speaker of the House in 1814–1815, and was president of the Second Bank of the United States from 1819 to 1822.

Hard money (policy)

hard moneyspeciehard-money
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" Andrew Jackson administration and eastern banking interests in the Bank War.
In 1836, when President Andrew Jackson's veto of the recharter of the Second Bank of the United States took effect, he issued the Specie Circular, an executive order that all public lands had to be purchased with hard money.

Albert Gallatin

GallatinistAbraham Alfonse Albert GallatinGallatin
Albert Gallatin, former Secretary of the Treasury under Thomas Jefferson and James Madison, wrote in 1831 that the BUS was fulfilling its charter expectations.
In the aftermath of the war, he helped found the Second Bank of the United States.

Daniel Webster

WebsterDan'l WebsterAmerican politician of the same name
The U.S. Supreme Court had affirmed the constitutionality of the bank under McCulloch v. Maryland, the 1819 case which Daniel Webster had argued successfully on its behalf a decade earlier, the U.S. Treasury recognized the useful services it provided, and the American currency was healthy and stable.
Webster supported Jackson's defiant response to the Nullification Crisis, but broke with the president due to disagreements over the Second Bank of the United States.

Henry Clay

ClayHenry Clay, Sr.Clay, Henry
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" Andrew Jackson administration and eastern banking interests in the Bank War. The political climate —dubbed the Era of Good Feelings —favored the development of national programs and institutions, including a protective tariff, internal improvements and the revival of a Bank of the United States Southern and western support for the bank, led by Republican nationalists John C. Calhoun of South Carolina and Henry Clay of Kentucky was decisive in the successful chartering effort.
To stabilize the currency, Clay and Treasury Secretary Alexander Dallas arranged passage of a bill establishing the Second Bank of the United States (also known as the national bank).

McCulloch v. Maryland

McCulloch v MarylandbanksM'Culloch v. Maryland
The U.S. Supreme Court had affirmed the constitutionality of the bank under McCulloch v. Maryland, the 1819 case which Daniel Webster had argued successfully on its behalf a decade earlier, the U.S. Treasury recognized the useful services it provided, and the American currency was healthy and stable.
The state of Maryland had attempted to impede an operation by the Second Bank of the United States through a tax on all notes of banks not chartered in Maryland.

Era of Good Feelings

Era of Good Feelingreestablishment of normal diplomatic relationsThe Era of Good Feelings
The political climate —dubbed the Era of Good Feelings —favored the development of national programs and institutions, including a protective tariff, internal improvements and the revival of a Bank of the United States Southern and western support for the bank, led by Republican nationalists John C. Calhoun of South Carolina and Henry Clay of Kentucky was decisive in the successful chartering effort.
Madison announced this shift in policy with his Seventh Annual Message to Congress in December 1815, subsequently authorizing measures for a national bank and a protective tariff on manufactures.

John C. Calhoun

John CalhounJohn Caldwell CalhounCalhoun
The political climate —dubbed the Era of Good Feelings —favored the development of national programs and institutions, including a protective tariff, internal improvements and the revival of a Bank of the United States Southern and western support for the bank, led by Republican nationalists John C. Calhoun of South Carolina and Henry Clay of Kentucky was decisive in the successful chartering effort.
A new bank was chartered as the Second Bank of the United States by Congress and approved by President James Madison in 1816.

First Bank of the United States

Bank of the United Statesnational bankFirst
Modeled on Alexander Hamilton's First Bank of the United States, the Second Bank was chartered by President James Madison in 1816 and began operations at its main branch in Philadelphia on January 7, 1817, managing twenty-five branch offices nationwide by 1832. The political climate —dubbed the Era of Good Feelings —favored the development of national programs and institutions, including a protective tariff, internal improvements and the revival of a Bank of the United States Southern and western support for the bank, led by Republican nationalists John C. Calhoun of South Carolina and Henry Clay of Kentucky was decisive in the successful chartering effort.
In 1816, the bank was succeeded by the Second Bank of the United States.

Laissez-faire

laissez fairelaissez-faire capitalismlaissez-faire economics
Simultaneously, the national bank was engaged in promoting a democratized expansion of credit to accommodate laissez-faire impulses among eastern business entrepreneurs and credit hungry western and southern farmers.
Notable examples of government intervention in the period prior to the American Civil War include the establishment of the Patent Office in 1802; the establishment of the Office of Standard Weights and Measures in 1830; the creation of the Coast and Geodetic Survey in 1807 and other measures to improve river and harbor navigation; the various Army expeditions to the west, beginning with Lewis and Clark's Corps of Discovery in 1804 and continuing into the 1870s, almost always under the direction of an officer from the Army Corps of Topographical Engineers and which provided crucial information for the overland pioneers that followed; the assignment of Army Engineer officers to assist or direct the surveying and construction of the early railroads and canals; and the establishment of the First Bank of the United States and Second Bank of the United States as well as various protectionist measures (e.g. the tariff of 1828).

National bank

national banksNational Associationnational charter
The Second Bank of the United States, located in Philadelphia, Pennsylvania, was the second federally authorized Hamiltonian national bank in the United States during its 20-year charter from February 1816 to January 1836.
In the United States, the term national bank originally referred to the Revolutionary War-era Bank of North America (later the First Bank of the United States) or its successor, the Second Bank of the United States.

Charleston, South Carolina

CharlestonCharleston, SCCharles Town
Branches of the First and Second Bank of the United States were also located in Charleston in 1800 and 1817.

William Jones (statesman)

William Jones William JonesJones
Under the management of the first BUS president William Jones, the bank failed to control paper money issued from its branch banks in the West and South, contributing to the post-war speculative land boom.
From May 1813 to February 1814, Jones also served as acting Secretary of the Treasury and in 1816 was appointed President of the Second Bank of the United States.

James Monroe

MonroePresident MonroePresident James Monroe
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.
After the war, Congress authorized the creation a national bank in the form of the Second Bank of the United States.

Panic of 1837

financial panic of 1837financial crisis of 18371837
A shortage of hard currency ensued, causing the Panic of 1837 and lasting approximately seven years.
In July 1832, President Andrew Jackson vetoed the bill to recharter the Second Bank of the United States (BUS), the nation's central bank and fiscal agent.

William Strickland (architect)

William Strickland
The architect of the Second Bank of the United States was William Strickland (1788–1854), a former student of Benjamin Latrobe (1764–1820), the man who is often called the first professionally trained American architect.
Strickland and Latrobe competed to design the Second Bank of the United States in Philadelphia (1819–1824), a competition that called for "chaste" Greek style.

New Orleans Mint

New OrleansNew Orleans, LouisianaMint
He also designed the New Orleans, Dahlonega, and Charlotte branch mints in the mid-to-late 1830s, as well as the second building for the main U.S. Mint in Philadelphia in 1833.
In 1832 President Andrew Jackson had vetoed a rechartering of the Second Bank of the United States, an institution which he felt extended credit to northeastern commercial tycoons at the expense of the ordinary frontiersmen of the Old Southwest, a region with which Jackson, a Tennessean, strongly identified.