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Encyclopedia > Second Bank of the United States
Second Bank of the United States
(U.S. National Historic Landmark)
The south façade of the Second Bank of the United States in August 2006.
Location: Philadelphia, Pennsylvania
Coordinates: 39°56′54.86″N, 75°8′55.2″W
Built/Founded: 1824
Architect: Strickland,William
Architectural style(s): Greek Revival
Added to NRHP: May 04, 1987
NRHP Reference#: 87001293 [1]
Governing body: National Park Service

The Second Bank of the United States was a bank chartered in 1816, five years after the expiration of the First Bank of the United States. It was founded during the administration of U.S. President James Madison out of desperation to stabilize the currency. The Second Bank of the United States was located in Philadelphia, Pennsylvania, where its building, designed by the architect William Strickland, still stands as part of Independence National Historical Park. For other uses of terms redirecting here, see US (disambiguation), USA (disambiguation), and United States (disambiguation) Motto In God We Trust(since 1956) (From Many, One; Latin, traditional) Anthem The Star-Spangled Banner Capital Washington, D.C. Largest city New York City National language English (de facto)1 Demonym American... This article or section needs additional references or sources to improve its verifiability. ... Image File history File linksMetadata Download high-resolution version (2048x1536, 825 KB)Copyright 2006 Peter Clericuzio. ... Nickname: City of Brotherly Love, Philly, the Quaker City Motto: Philadelphia maneto (Let brotherly love continue) Location in Pennsylvania Coordinates: Country United States State Pennsylvania County Philadelphia Founded October 27, 1682 Incorporated October 25, 1701 Mayor John F. Street (D) Area    - City 369. ... A typical plaque showing entry on the National Register of Historic Places. ... May 4 is the 124th day of the year in the Gregorian calendar (125th in leap years). ... Year 1987 (MCMLXXXVII) was a common year starting on Thursday (link displays 1987 Gregorian calendar). ... The National Park Service (NPS) is the United States federal agency that manages all National Parks, many National Monuments, and other conservation and historical properties with various title designations. ... The First Bank of the United States was a bank chartered by the United States Congress on February 25, 1791. ... For the pop band, see Presidents of the United States of America. ... James Madison (March 16, 1751 – June 28, 1836), was an American politician and the fourth President of the United States (1809–1817), and one of the Founding Fathers of the United States. ... For other uses, see Philadelphia (disambiguation) and Philly. ... Independence National Historic Park, located in Philadelphia, Pennsylvania, is the historic area of downtown (or Center City) Philadelphia where Independence Hall, the Liberty Bell, and the National Constitution Center are located, along with dozens of other historic buildings and educational centers. ...


The Bank served as the depository for Federal funds until 1833, when President Andrew Jackson instructed his Secretaries of the Treasury to cease depositing the funds. Two refused to obey, so he fired them, one after the other, until he got one who obeyed: Roger B. Taney, his former Attorney General and the future Supreme Court Chief Justice. This decision was an aspect of Jackson's famous dispute with the Bank's president, Nicholas Biddle. The Bank, always a privately owned institution, lost its Federal charter in 1836. It became defunct in 1841. For other uses, see Andrew Jackson (disambiguation). ... Roger Brooke Taney (March 17, 1777 – October 12, 1864) was the fifth Chief Justice of the United States, from 1836 until his death in 1864, and the first Roman Catholic to hold that office. ... Nicholas Biddle Nicholas Biddle (January 8, 1786–February 27, 1844), American financier, was born and died in Philadelphia, Pennsylvania. ...

Contents

Background

This Second bank was patterned after the First Bank of the United States. The legality of the Bank was upheld in the U.S. Supreme Court case McCulloch v. Maryland 17 U.S. 316 (1819) that also declared null and void any state law contrary to a federal law made in pursuance of the Constitution. The Bank's last president was Nicholas Biddle (1786-1844), an upper-class well-educated man of letters with banking expertise. The First Bank of the United States was a bank chartered by the United States Congress on February 25, 1791. ... Federal courts Supreme Court Circuit Courts of Appeal District Courts Elections Presidential elections Midterm elections Political Parties Democratic Republican Third parties State & Local government Governors Legislatures (List) State Courts Local Government Other countries Atlas  US Government Portal      The Supreme Court of the United States (sometimes colloquially referred to by the... Holding Although the Constitution does not specifically give Congress the power to establish a bank, it does delegate the ability to tax and spend, and a bank is a proper and suitable instrument to assist the operations of the government in the collection and disbursement of the revenue. ... Nicholas Biddle (1750-1778) was an officer in the Continental Navy. ...

Philadelphia Portal

Renewal of the Second Bank was vetoed on July 10, 1832 by Andrew Jackson, and it slowly declined until the expiration of its charter in 1836. The bank became a major campaign issue in 1832, with Jackson supported by the Democrats and Biddle supported by Henry Clay, who ran against Jackson. Jackson won, and the national charter was not renewed, but Biddle kept the bank in operation using a state charter. Tensions were high in August 1841 when President John Tyler vetoed a Whig Party bill that called for the re-establishment of the Second Bank of the United States. Image File history File links Portal. ... This article or section does not adequately cite its references or sources. ... is the 191st day of the year (192nd in leap years) in the Gregorian calendar. ... Year 1832 (MDCCCXXXII) was a leap year starting on Sunday (link will display the full calendar) of the Gregorian Calendar (or a leap year starting on Friday of the 12-day slower Julian calendar). ... For other uses, see Andrew Jackson (disambiguation). ... “Electioneering” redirects here. ... The History of the Democratic Party is an account of a continuously supported political party in the United States of America. ... For his namesake son, see Henry Clay, Jr. ... John Tyler, Jr. ...


Controversy

The Second Bank of the United States provided a convenient way for the government to handle its affairs. The bank was created after James Madison and Albert Gallatin found the government unable to finance the War of 1812 after the closing of the First Bank of the United States in 1815. James Madison (March 16, 1751 – June 28, 1836), was an American politician and the fourth President of the United States (1809–1817), and one of the Founding Fathers of the United States. ... Abraham Alfonse Albert Gallatin (January 29, 1761 – August 12, 1849) was a Swiss-American ethnologist, linguist, politician, diplomat, Congressman, and the longest-serving United States Secretary of the Treasury. ... This article is about the U.S.–U.K. war. ... The First Bank of the United States was a bank chartered by the United States Congress on February 25, 1791. ...


After the war the United States experienced an economic boom, due to the devastation of the Napoleonic Wars. In particular, because of the damage to Europe's agricultural sector, the U.S. agricultural sector underwent an expansion. The Bank aided this boom through its lending, which encouraged speculation in land. This lending allowed almost anyone to borrow money and speculate in land, sometimes doubling or even tripling the prices of land. The land sales for 1819, alone, totaled some 55 million acres (220,000 km²). With such a boom, hardly anyone noticed the widespread fraud occurring at the Bank as well as the economic bubble that had been created. [2] Combatants Austria[a] Portugal Prussia[a] Russia[b] Sicily[c] Sardinia  Spain[d]  Sweden[e] United Kingdom French Empire Holland[f] Italy Etruria[g] Naples[h] Duchy of Warsaw[i] Confederation of the Rhine[j] Bavaria Saxony Westphalia Württemberg Denmark-Norway[k] Commanders Archduke Charles Prince Schwarzenberg Karl Mack...


In the summer of 1818, the national bank managers realized the bank's massive over-extension, and instated a policy of contraction and the calling in of loans. This recalling of loans simultaneously curtailed land sales and slowed the US production boom due to the recovery of Europe. The result was the Panic of 1819 and the situation leading up to McCulloch v. Maryland 17 U.S. 316 (1819). [3] The Panic of 1819 was the first major financial crisis in the United States. ... Holding Although the Constitution does not specifically give Congress the power to establish a bank, it does delegate the ability to tax and spend, and a bank is a proper and suitable instrument to assist the operations of the government in the collection and disbursement of the revenue. ...


Maryland adopted a policy to restrict banks, by placing a tax on any bank that was not chartered by the state legislature. This tax was either 2% of all assets or a flat rate of $15,000. That meant that the Baltimore Branch would have to pay this hefty tax. McCulloch filed suit against the state in a county court. The case made its way through the courts, all the way up to the United States Supreme Court, where the tax by the state of Maryland was ultimately struck down. Daniel Webster had successfully argued the case for the bank. Federal courts Supreme Court Circuit Courts of Appeal District Courts Elections Presidential elections Midterm elections Political Parties Democratic Republican Third parties State & Local government Governors Legislatures (List) State Courts Local Government Other countries Atlas  US Government Portal      The United States federal courts are the system of courts organized under the... The Supreme Court Building, Washington, D.C. The Supreme Court Building, Washington, D.C., (large image) The Supreme Court of the United States, located in Washington, D.C., is the highest court (see supreme court) in the United States; that is, it has ultimate judicial authority within the United States... Daniel Webster (January 18, 1782 – October 24, 1852), was a leading American statesman during the nations antebellum era. ...


Bank's Decline

Democratic cartoon from 1833 showing Jackson destroying the bank, to the approval of the Uncle Sam like figure to the right, and annoyance of the bank's President, shown as the Devil himself.

By the early 1830s, President Andrew Jackson had come to thoroughly dislike the Second Bank of the United States because of its fraud and corruption. Jackson then had an investigation done on the Bank which he said established “beyond question that this great and powerful institution had been actively engaged in attempting to influence the elections of the public officers by means of its money.” Although its charter was bound to run out in 1836, Jackson wanted to "kill" the Second Bank of the United States even earlier. Jackson is considered primarily responsible for its demise, seeing it as an instrument of political corruption and a threat to American liberties.[4] The head of the Second Bank during Jackson's presidency was Nicholas Biddle who decided to seek an extension of the bank's charter four years early, in 1832. Henry Clay helped to steer the bill through Congress. But Jackson vetoed the bill in July. Image File history File links Download high-resolution version (1955x1309, 608 KB) 1833 cartoon--lithograph by Edward W. Clay. ... Image File history File links Download high-resolution version (1955x1309, 608 KB) 1833 cartoon--lithograph by Edward W. Clay. ... This article is about the national personification of the USA. For other uses, see Uncle Sam (disambiguation). ... For other uses, see Andrew Jackson (disambiguation). ... Nicholas Biddle Nicholas Biddle (January 8, 1786–February 27, 1844), American financier, was born and died in Philadelphia, Pennsylvania. ...


In his message on the veto of the bank Jackson used language which appeared to resonate mostly with the common man of the country, while attacking the predominantly rich or foreign stockholders of the current bank.


Jackson's charter extension veto message inspired Biddle to dismiss the message as a "manifesto of anarchy." Senator Daniel Webster of Massachusetts, who was on retainer as the bank's legal counsel and also Director of its Boston branch, suggested such language was a political tool, and the entire message a campaign document for Jackson's approaching re-election in 1832. If so, it was successful. Jackson defeated Clay. Daniel Webster (January 18, 1782 – October 24, 1852), was a leading American statesman during the nations antebellum era. ...


The Second Bank of the United States thrived from the tax revenue that the federal government regularly deposited. Jackson struck at this vital source of funds in 1833 by instructing his Secretary of the Treasury to deposit federal tax revenues in state banks, soon nicknamed "pet banks" because of their loyalty to Jackson's party. Pet banks is a term applied to the state banks selected by the U.S. Department of Treasury to receive government deposits in 1833, following the collapse of the Second Bank of the United States by President Andrew Jackson. ...


In September, 1833, Secretary of the Treasury Roger B. Taney transferred the government's Pennsylvania deposits in the Second Bank of the United States to the Bank of Girard in Philadelphia. This was the successor bank to the Bank of Stephen Girard. Stephen Girard had purchased the assets of the First Bank of the United States when its charter was not renewed in 1811. He then named his new bank the Bank of Stephen Girard. He became a major financier of the War of 1812, including most of the war loan of 1813. He was the original organizer and a major shareholder of the Second Bank. He died in 1841. Stephen Girard Stephen Girard (May 20, 1750–December 26, 1831) was an American philanthropist and banker. ...


The Second Bank of the United States soon began to lose money. Nicholas Biddle, desperate to save his bank, called in (demanded payment on) all of his loans and closed the bank to new loans. This angered many of the bank's clients, causing them to pressure Biddle to re-adopt its previous loan policy. Nicholas Biddle Nicholas Biddle (January 8, 1786–February 27, 1844), American financier, was born and died in Philadelphia, Pennsylvania. ...


Some anti-Jacksonians converted their outrage into political action. Under guidance from Webster and Clay, in 1834 they formed the Whig party.[5] If the Whigs and anti-Jackson National Republicans could gain enough votes in Congress in the 1836 election to override a second Jackson veto, they could extend the bank's charter. They did not get enough new members to override a veto. Congress did not send another bank charter extension bill to Jackson. The Whig Party was a political party of the United States during the era of Jacksonian democracy. ...


The Second Bank of the United States was left with little money and, in 1836, its charter expired and it turned into an ordinary bank in Philadelphia. Five years later, the former Second Bank of the United States went bankrupt.[6]


Post-bankruptcy

Despite the demise of the Second Bank of the United States, the building that housed it was not demolished. Since the Bank's closing in 1841, the edifice has performed a variety of functions. As of 2006, it is included as one of the main structures in Independence National Park in downtown Philadelphia, alongside many other important early American structures such as Independence Hall and the Philadelphia Merchants' Exchange. The structure is open daily free of charge and serves as an art gallery, housing a large and famous collection of portraits of prominent early Americans painted by Charles Willson Peale and many others. Independence Hall is a U.S. national landmark located in Philadelphia, Pennsylvania on Chestnut Street between 5th and 6th Streets. ... Charles Willson Peale (1741-1827), self-portrait from 1822 Charles Willson Peale (April 15, 1741 – February 22, 1827) was an American painter, soldier and naturalist. ...


Architecture

Postcard from 1986 showing the north façade of the Second Bank of the United States, facing Chestnut Street in Philadelphia.
Postcard from 1986 showing the north façade of the Second Bank of the United States, facing Chestnut Street in Philadelphia.

The architect of the Second Bank of the United States was William Strickland (1788-1854), a former student of Benjamin Latrobe (1764-1820), the man who is often called the first professionally-trained American architect. Latrobe and Strickland were both disciples of the Greek Revival style. Strickland would go on to design many other American public buildings in this style, including financial structures such as the New Orleans, Dahlonega, Mechanics National Bank (also in Philadelphia) and Charlotte branch mints in the mid-to-late 1830s, as well as the second building for the main U.S. Mint in Philadelphia in 1833. Image File history File links Second_national_bank_US_bw. ... Image File history File links Second_national_bank_US_bw. ... William Strickland was a noted architect in 19th Century Philadelphia, Pennsylvania. ... Benjamin Henry Boneval Latrobe (May 1, 1764 - September 3, 1820) was a British-born American architect best known for his design of the United States Capitol. ... For other uses, see Architect (disambiguation). ... Personal residence of Catherine the Great Greek Revival was a style of classical architecture which became fashionable in Europe in the 18th century, and in the United Kingdom and United States in the early 19th century. ... The Ionic portico of the façade of the New Orleans Mint today, as seen from across Esplanade Avenue. ... The Dahlonega Mint was chartered by the United States Congress in 1838, at the mining town of Dahlonega, Georgia, during the first gold rush. ... National Mechanics Building The Mechanics National Bank was a Philadelphia, Pennsylvania bank founded by and geared toward mechanics. ... With the Carolina gold rush in full swing, the Charlotte Mint was born on March 3, 1835. ... The Philadelphia Mint was created from the need to establish a national identity and the needs of commerce. ...


Strickland's design for the Second Bank of the United States remains fairly straightforward. The hallmarks of the Greek Revival style can be seen immediately in the north and south façades, which use a large set of steps leading up to the main level platform, known as the stylobate. On top of these, Strickland placed eight severe Doric columns , which are crowned by an entablature containing a triglyph frieze and simple triangular pediment. The building appears much as an ancient Greek temple, hence the stylistic name. The interior consists of an entrance hallway in the center of the north façade flanked by two rooms on either side. The entry leads into two central rooms, one after the other, that span the width of the structure east to west. The east and west sides of the first large room are each pierced by large arched fan window. The building's exterior uses Pennsylvania blue marble, which, due to the manner in which it was cut, has begun to deteriorate from the exposure to the elements of weak parts of the stone. This phenomenon is most visible on the Doric columns of the south façade. Construction lasted from 1819 to 1824. In Greek architecture, stylobate is a platform on which colonnades of columns are placed (it is the floor of the temple). ... The Doric order was one of the orginal pokersthree orders or organizational systems of Ancient Greek or classical architecture; the other two canonical orders were the Ionic and the Corinthian. ... Triglyph centered over the last column in the Doric order of the Ancient Romans Triglyph is an architectural term for the vertically channeled tablets of the Doric frieze, so called because of the angular channels in them, two perfect and one divided, the two chamfered angles or hemiglyphs being reckoned... Frieze of the Tower of the Winds. ... A pediment is a classical architectural element consisting of a triangular section or gable found above the horizontal superstructure (entablature) which lies immediately upon the columns. ...


The Greek Revival style used for the Second Bank contrasts slightly with the earlier, Federal style in architecture used for the First Bank, whose building also still stands and is located nearby in Philadelphia. This can be seen in the more Roman-influenced Federal structure's ornate, colossal Corinthian columns of its façade, which is also embellished by Corinthian pilasters and a symmetric arrangement of sash windows piercing the two stories of the façade. The roofline is also topped by a balustrade and the heavy modillions adorning the pediment give the First Bank an appearance much more like a Roman villa than a Greek temple. Central Pavilion, Tontine Crescent, 1793-1794, by Charles Bulfinch Federal style architecture occurred in the United States between 1780 and 1830, particularly from 1785 to 1815. ...


Notes

  1. ^ National Register Information System. National Register was a bank chartered in 1816, five years after the expiration of the First Bank of the United States. It was founded during the administration of U.S. President James Madison out of desperation to stabilize the currency. The Second Bank of the United States was located in Philadelphia, Pennsylvania, where its building, designed by the architect William Strickland, still stands as part of Independence National Historical Park. f Historic Places. National Park Service (2006-03-15).
  2. ^ Ratner, 1993, ch 7
  3. ^ Schweikart (1987)
  4. ^ Wilentz , 2005
  5. ^ Remini (1967)
  6. ^ Ratner (1993) ch 7

The First Bank of the United States was a bank chartered by the United States Congress on February 25, 1791. ... For the pop band, see Presidents of the United States of America. ... James Madison (March 16, 1751 – June 28, 1836), was an American politician and the fourth President of the United States (1809–1817), and one of the Founding Fathers of the United States. ... For other uses, see Philadelphia (disambiguation) and Philly. ... Independence National Historic Park, located in Philadelphia, Pennsylvania, is the historic area of downtown (or Center City) Philadelphia where Independence Hall, the Liberty Bell, and the National Constitution Center are located, along with dozens of other historic buildings and educational centers. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... is the 74th day of the year (75th in leap years) in the Gregorian calendar. ...

References

Secondary sources

  • Bodenhorn, Howard. A History of Banking in Antebellum America: Financial Markets and Economic Development in an Era of Nation-Building (2000). Stresses how all banks promoted faster growth in all regions.
  • Costello, Shannon Marie. "Jackson Is My Kind of Man" :P (2006). Memoir. Pro-Jackson.
  • Daniel Feller, "The bank war," in Julian E. Zelizer, ed. The American Congress (2004), pp 93-111.
  • Hammond, Bray. "Jackson, Biddle, and the Bank of the United States," The Journal of Economic History, Vol. 7, No. 1 (May, 1947), pp. 1-23 at JSTOR
  • Hammond, Bray. Banks and Politics in America from the Revolution to the Civil War (1957). Pulitzer prize winner; the standard history. Pro-Bank
  • Hammond, Bray. "The Second Bank of the United States. Transactions of the American Philosophical Society, New Ser., Vol. 43, No. 1 (1953), pp. 80-85 in JSTOR
  • Ratner, Sidney, James H. Soltow, and Richard Sylla. The Evolution of the American Economy: Growth, Welfare, and Decision Making. (1993)
  • Remini Robert V. Andrew Jackson and the Bank War: A Study in the Growth of Presidential Power (1967). Pro-Jackson.
  • Schlesinger, Arthur Meier Jr. Age of Jackson (1946). Pulitzer prize winning intellectual history; strongly pro-Jackson.
  • Schweikart, Larry. Banking in the American South from the Age of Jackson to Reconstruction (1987)
  • Taylor; George Rogers, ed. Jackson Versus Biddle: The Struggle over the Second Bank of the United States (1949). Primary and secondary sources.
  • Temin, Peter. The Jacksonian Economy (1969)
  • Wilburn, Jean Alexander. Biddle's Bank: The Crucial Years (1967). Narrative history, pro-Bank.
  • Wilentz Sean. The Rise of American Democracy: Jefferson to Lincoln (2005). Pro-Jackson.

Primary sources

  • McGrane, Reginald C. Ed. The Correspondence of Nicholas Biddle (1919)
  • Hofstadter, Richard. Great Issues in American History: From the Revolution to the Civil War, 1765-1865 (1958).

See also

The Federal Reserve System is headquartered in the Eccles Building on Constitution Avenue in Washington, DC. The Federal Reserve System (also the Federal Reserve; informally The Fed) is the central bank of the United States. ... The Federal Reserve Act (ch. ... Whig campaign poster blames Van Buren for hard times (1840). ...

External links

  • The Second Bank of the United States - a history of the Bank by Ralph C. H. Catterall of the University of Chicago, 1902 - on Google Books
  • Andrew Jackson on the Web : Bank of the United States

  Results from FactBites:
 
Second Bank of the United States - Wikipedia, the free encyclopedia (1562 words)
The south façade of the Second Bank of the United States in August 2006.
Renewal of the Second Bank was vetoed on July 10, 1832 by Andrew Jackson, and it slowly declined until the expiration of its charter in 1836.
The bank was created after James Madison and Albert Gallatin found the government unable to finance the War of 1812 after the closing of the First Bank of the United States in 1811.
From Revolution to Reconstruction: Essays: central banking USA 04 (687 words)
The Second Bank of the U.S. was chartered in 1816 with the same responsibilities and powers as the First Bank.
Chief Justice Marshall wrote "After the most deliberate consideration, it is the unanimous and decided opinion of this court that the act to incorporate the Bank of the United States is a law made in pursuance of the Constitution, and is part of the supreme law of the land" (Hixson, 117).
Although the Second Bank was not a campaign issue (Biddle actually voted for Jackson), by 1832, four years before the Bank's charter was to expire, political divisions over the Bank had already formed (Ibid).
  More results at FactBites »

 
 

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