This name, however, was very misleading. "The Bank", as it was referred to, was actually under private control; stock was held by both domestic and foreign investors. Congress chartered the bank for twenty years in 1816, which "enabled the two separate entities to share in financial ventures which would have proven to be mutually prosperous" (D"tmUrso 4). The Bank had served regular commercial banking purposes but also acted as the collection and disbursement agent for the federal government, which held one-fifth of its thirty-five-million-dollar capital stock (Weisberger 1).The Bank was a storehouse for public funds, and could use these funds for its own purposes without paying interest. It could issue bank notes, was not required to pay state taxes, and it was understood that Congress was not to charter any comparable institution (D"tmUrso 4). From the day it was created it faced serious problems -- private business could not be clearly or easily separated from its public functions. According to Weisberger, "as the holder of the fast-growing nation's swelling revenues it had the biggest reserves and readily became the most powerful lending institution in the land -
became the president of the Second Bank of the United States. This name, however, was very misleading. "The Bank", as it was referred to, was actually under private control; stock was held by both domestic and foreign investors. Congress chartered the bank for twenty years in 1816, which "enabled the two separate entities to share in financial ventures which would have proven to be mutually prosperous" (D"tmUrso 4). The Bank had served regular commercial banking purposes but also acted as the collection and disbursement agent for the federal government, which held one-fifth of its thirty-five-million-dollar capital stock (Weisberger 1).The Bank was a storehouse for public funds, and could use these funds for its own purposes without paying interest. It could issue bank notes, was not required to pay state taxes, and it was understood that Congress was not to charter any comparable institution (D"tmUrso 4). From the day it was created it faced serious problems -- private business could not be clearly or easily separated from its public functions. According to Weisberger, "as the holder of the fast-growing nation's swelling revenues it had the biggest reserves and readily became the most powerful lending institution in the land -- a central bank, in effect, with a determining influence on the amount of available credit in the economy. From a fiscal-stability point of view, this was not a bad situation at all, but in the United States of the 1820s it was politically explosive" (1).
"It is to be regretted that the rich and the powerful too often bend the acts of government to their selfish purposes"Equality of talents, of education, or of wealth cannot be produced by human institutions"but when the laws undertake to add to these natural and just advantages"to make the rich richer and the potent more powerful, the humble members of society"who have neither the time nor the means of securing like favors for themselves, have a right to complain of the injustice of their government" (Will 2).
At the time, America had no other currency than gold or silver coins, otherwise known as specie. In the early years of the 19th century it was becoming increasingly difficult to o
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