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The War for Independence was over, but all was not well. The United States of America, a name the new country had adopted under the Articles of Confederation, was beset with problems. The s saw widespread economic disruption. One prominent architect of the fledgling country — Alexander Hamilton, the first secretary of the Treasury under the new Constitution — had ambitious ideas about how to solve some of these problems.
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The First Bank of the United States
Bank of the United States | American financial institution | itsmyitaly.com
In February , the First Bank of the United States received a unique national charter for twenty years. The Bank prospered for twenty years and performed traditional banking functions in exemplary fashion. When Congress asked Hamilton to submit an economic plan for the country, he was well prepared. They included a sinking fund to extinguish the national debt and an excise tax to be collected on all distilled liquors. The Bank would not only stimulate the economy but also enhance the shaky credit of the government.
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Bank of the United States
The Second Bank was formed five years later, bringing renewed controversy despite the U. President Andrew Jackson removed all federal funds from the bank after his reelection in , and it ceased operations as a national institution after its charter expired in Initially proposed by Alexander Hamilton , the First Bank was granted a twenty-year charter by Congress in spite of the opposition of the Jeffersonians to whom it represented the dominance of mercantile over agrarian interests and an unconstitutional use of federal power. The Bank, based in Philadelphia with branches in eight cities, conducted general commercial business as well as acting for the government. It was both well managed and profitable, but it won the enmity of entrepreneurs and state banks, who argued that its fiscal caution was constraining economic development.
After the Revolutionary War, the United States faced overwhelming debt and an uncertain commercial future. As a response, Secretary of the Treasury Alexander Hamilton stepped forward with a plan to establish a national bank, which would give the federal government more authority to handle the fiscal situation. His proposal incited a heated debate that tested the U. Located on 3rd Street between Walnut and Chestnut, the First Bank of the United States is currently closed to the public, but its compelling history and stunning exterior continually draw observers from all over the world.