USA HISTORY

Detailed explanation-1: -The Bank of the United States, now commonly referred to as the first Bank of the United States, opened for business in Philadelphia on December 12, 1791, with a twenty-year charter.

Detailed explanation-2: -Congress established the First Bank of the United States in 1791 to serve as a repository for Federal funds. Its charter expired in 1811, but in 1816 Congress created a Second Bank of the United States with a charter set to expire in 1836. By the 1830s the Bank had become a volatile political issue.

Detailed explanation-3: -For these reasons President Madison signed a bill authorizing the 2nd Bank in 1816 with a charter lasting 20 years.

Detailed explanation-4: -The charter of the Second Bank of the United States expired in 1836, and a defeated Biddle accepted an offer from Pennsylvania to turn it into a state-chartered bank. With the removal of the Bank as a regulating force, state banks began printing currency and lending money in exorbitant amounts.

Detailed explanation-5: -Andrew Jackson vetoed the bill re-chartering the Second Bank in July 1832 by arguing that in the form presented to him it was incompatible with “justice, ” “sound policy” and the Constitution.