Jackson and the 2nd national Bank

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  • 1st bank established

    This was chartered by Hamilton for 20 years. The government held some of its stock, the bank, like the Bank of England and other central banks of the time, was a private corporation with profits
    passing to its stockholders. Its public functions were to be a depository for government receipts, to make short-term loans to the government, and to make a sound currency by refusing to accept paper money issued by state-chartered banks in excess of their ability to redeem.

  • first bank charter expires

    The Republican Party of Jefferson and Madison doubted its constitutionality. When its charter expired in 1811, it was not renewed.

  • Second bank chartered

    It was chartered for another 20 years just like the first and was very similar. Since it was over taking the new local bankers, people resented it. It was more favored by the wealthy.

  • Jackson veto's 2nd bank

    Jackson vetoed the bill re-chartering the Second Bank because in the form presented to him it was incompatible with “justice,” “sound policy” and the Constitution.

  • Creation of pet banks

    State banks were selected by the U.S. Department of Treasury to receive surplus Treasury funds.

  • Federal Reserve System

    This is knows as the Feds it was a more flexible way of banking. It is the bank of the U.S. government and regulates the nation's financial institutions.