History Discussion 6: The Second Bank of the United States

The Second Bank of the United States
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After the first bank in the United States had come to the ground after the War of 1812, the Second Bank of the United States was formed and chartered in 1816. The Second Bank of the United States was to carry out the responsibilities and the powers of the first bank. It was not to the founders’ expectation that the Second Bank was managed poorly and fraud took over the operations of the Bank. It was required of the bank that it maintains a “currency principle” which was meant to preserve its deposit ratio at 20% however it went down to 12 and 65 percent(Dewey & Catterall, 2003).
There were two unconstitutional shutdown attempts that were made on the Second Bank. In the year 1823, it began to function as per the expectation after Nicholas Biddle took over as the Bank’s President. It gained currency and restored the financial stability after Jackson was elected president. In President Andrew Jackson reign he began a campaign to destroy the bank in the year 1833 and had great faith that this position gave him a great support in his reelection bid(KNODELL, 2003). He named the campaign as “The Bank War.” However, on the other hand, Biddle began to present state bank notes for the purpose of redemption, he made an effort to contradict credit and called in for more loans. As he worked for this, he had the main believe in mind that financial crisis would give the basis for a renewal of the charter. It was not easy to get to meet both the “The Bank War” and the renewal of the bank’s charter. However, the thing turned in President Jackson’s way as at the end the Bank’s charter expired in 1836, making President...