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Gambling (Banking): Banks And Banking During 1790-1836

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Economic 1790- 1836 (Banking):
Banks and banking were topics not everyone agreed on during 1790 to 1836.

In 1790, Alexander Hamilton organized the debts of the U.S they had to pay in three parts. The first was the debt they had with the French from the Revolutionary War, which was $11 million. After this first one, there were the second and third debt, which were about $24 million each. This debt was especially for the state and national government that loaned them money. It was for the food and weapons that were given to them. Then, Hamilton created the Bank of the United States. During the time Hamilton was supporting his belief in the bank, he came to the conclusion that it was a secure place to deposit and transfer money. this bank was …show more content…

The case was about the state of Maryland attempting to collect taxes from the Second Bank of the United States. This trial went to the Marshall Court. The decision that the court came up with was that the federal government had the implied powers to build up a bank. The importance of this was the fact that the state wasn’t allowed to tax the federal government, but the federal government could. It was said that federal laws were more powerful than state laws.

The result of the Second Bank of the U.S to control inflation was because of the Panic of 1819. The Panic caused many state banks to close down and the cost of money decreased. The number of unemployment, bankruptcies, and going to jail for debts were increasing in great numbers.

While renewing the First National Bank in 1832, there was a bank war. During this bank war, Nicholas Biddle and Andrew Jackson were in the middle of a serious debate. Andrew Jackson strongly believed that the Bank of the United States had plenty of power because of the fact that it was owned privately. He thought of it as unconstitutional. In fact he believed that the bank should be managed by people and the government, since it was corrupt. On the other side, Biddle, Clay, and Webster were all for the

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