Second Bank of the United States - Philadelphia, PA
by Susan Rissi Tregoning
Title
Second Bank of the United States - Philadelphia, PA
Artist
Susan Rissi Tregoning
Medium
Photograph - Photography
Description
The Second Bank of the United States, authorized by Congress, was the second national bank following Hamiltonian principles. It operated in Philadelphia, Pennsylvania, from February 1816 to January 1836. Per its charter, it was officially known as "The President Directors and Company of the Bank of the United States."
Unlike other banks in the country, it had the authority to establish branches in multiple states and lend money to the government. As a corporation with public responsibilities, the bank managed all financial transactions for the U.S. government. It was answerable to Congress and the U.S. Treasury.
The federal government was the largest stockholder, with a 20 percent stake. In comparison, 80 percent of the bank's capital was owned by 4,000 private investors, including 3,000 Europeans. A small group of wealthy Americans held the majority of stocks. At the time, it was the world's largest corporation in terms of money. The bank's primary function was to regulate public credit issued by private banks by executing fiscal duties for the U.S. Treasury and establishing a stable national currency. The federal deposits provided the bank with its regulatory power.
Interestingly, Founding Father and the fourth President of the United States, James Madison, who previously criticized the constitutionality of the First Bank in 1791, chartered the Second Bank, taking inspiration from Alexander Hamilton's First Bank. Its main branch opened in Philadelphia on January 7, 1817, and it expanded to manage 25 branch offices across the country by 1832. The bank's charter renewal became a central issue in the 1832 general election, with its president Nicholas Biddle and pro-bank National Republicans led by Henry Clay facing opposition from Andrew Jackson's administration and eastern banking interests in the Bank War. The Second Bank failed to secure a recharter and became a private corporation in 1836 before undergoing liquidation.
Constructed from 1818-1824, William Strickland designed this Greek Revival building based on Athen's Parthenon. It was added to the National Register of Historic Places and designated a National Historic Landmark in 1987.
Copyright 2023 Susan Rissi Tregoning
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June 7th, 2023
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