Alexander Hamilton: The Rise And Fall Of The Central Banking System
“The Bank is trying to kill me,Sir, but I shall kill it!” Andrew Jackson told that to his vice president Martin Van Buren as the Second Bank of the United States was dwindling to an end. Alexander Hamilton and Andrew Jackson had the exact opposite viewpoints. Hamilton wanted to have a strong national economy and thought that having a national bank was the best way to achieve that goal. However Jackson did not think that the Bank was the answer. This was the start of the Central Banks controversy.While The first and second banks constitutionality was debated, Alexander Hamilton desired the bank, The First Bank achieved and then disappeared, and The Central Banking System returned several years after the first one had ended.
In the early 1800s
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The treasury’s funds were deposited into the central banking system as well. This is important because when the bank fell; the treasury deposited his funds into private commercial banks on the basis of political favoritism. The United States bank was privately owned and seeked making profits. The Federal Bank was a competitor with the state banks that were seeking deposits and loan customers. The Federal Bank was both setting the rules and competing in the marketplace. The state banks were especially irritated and joined both the Agrarian interests and the Jeffersonians in opposition to the bank. The Agrarian interests opposed the bank because they feared that it would favor commercial and industrial industries over their own as well as promote paper currency at the expense of losing the gold and silver specie.The bank was starting to fall and as a result sold eighty percent of its stock to the public and foreigners with the remainder of it used by the Federal Government. The bank’s charter ran out in 1811 and was allowed to lapse because of a turn in political tide that was in favor of strict construction. They also had deep concerns throughout the large proportion of the British ownership of the Federal Bank.WIthout a Central Bank, trade was affected and hampered with the war effort in 1812. America didn’t have to wait too long for another Central Banking system to
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