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Article: Bank of the United States (Second National Bank)
- Article from:
- Gale Encyclopedia of U.S. Economic History
CopyrightCOPYRIGHT 1999 The Gale Group Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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BANK OF THE UNITED STATES (SECOND NATIONAL BANK)
After the First National Bank ceased to exist in 1811 U.S. currency and state bank notes became unstable. They could not be converted to gold or silver coins. Bank notes had become a common means of payment by that time. Inflation increased when the holders of these notes could not exchange them at face value. The economic situation was worsened by the War of 1812 (1812
–
14), which the United States fought against Britain because of its interference in U.S. shipping. In 1816 the federal government created the Second Bank of the United States, which had an initial capitalization of 35 million. Since the U.S. government owned 20 ...