Subjects:
Looking back to the outset of the 19th century, it is impossible to say that any real banking system had really been developed in the US. This is to say that, though there were roughly 120 private commercial banks that had been chartered by new state governments, the so-called system was scarcely organized. It was ad hoc in nature and directly linked to the merchant banking practices of the pre-independence period. The years preceding the turn of the century were important because they brought a central banking authority onto the scene. In 1789 the new federal government established a position for the Secretary of the Treasury. As we know, the first to hold this prestigious title was Alexander Hamilton. He accomplished a great deal in the 11 years leading up to the year 1800. Most notably his actions were largely responsible for the creation of the First Bank of the United States, which was given a charter in 1791. This thrust towards central banking was only to last 20 years, however. Up for review in 1811, the bank’s charter was not renewed.
This paper will argue that the failure to renew the First Bank of the United State’s charter was a direct result of the strong
. . .
Within the first few years of independence, it was almost natural that more trust was needed in the banking system. Hamilton believed that the idea of trust and faith had to be at the root of any successful banking system. “To soften the blow of such a tax plan, Hamilton painted the items to be taxed as darkly as possible: ‘They are all of them, in reality -- luxuries -- the greatest part of them foreign luxuries…pernicious luxuries … Spirits, which because of their ‘cheapness’ are imbibed to an extreme, ‘which is truly to be regretted, as well in regard to the health and the morals, as to the economy of the community…”(http://financeservices. htm> (accessed 12-12-99)
“James Madison Debates the Constitutionality of a National Bank” The Banking Controversy at the Turn of the 19th Century It is impossible to appreciate the dynamics of the banking system in the first century of the 19th century without commenting on the ideological and political battles that took place between Alexander Hamilton and Thomas Jefferson at the close of the 18th century. These banks issued notes, and other, more surprising enterprises, imitating the banks, did likewise. Madison claimed that the creation of such a central bank was unconstitutional, primarily because the constitution did not expressly allow for the United States government to create a bank or any other type of private corporation. In the event of discrepancies or conflict, the ultimate decision should be based on the welfare of the state, not the federal government. “The Bank carried a remarkable amount of liquidity.
Essay's Topics
All research is for reference purposes only.