Congress chartered the Second Bank in 1816 for a twenty

Congress chartered the Second Bank in 1816 for a twenty -...

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Unformatted text preview: Congress chartered the Second Bank in 1816 for a twenty-year period, giving it thirty- five million dollars in startup funds. A board of twenty-five directors controlled the Bank, but only five were publicly appointed by the Presidentthe rest came from stockholders. The directors controlled branches, invested funds, and oversaw operations. Over time, the Bank proved quite good at managing credit and providing profits for the stockholders and governmentperhaps too good. In 1819, the Bank had caused a financial panic by calling in credit from smaller state banks, forcing many of them into bankruptcy. This Panic of 1819 led to such a depression that western regions of the country still suffered in the late 1820s. By Jackson's administration, the Bank had expanded into twenty-nine branches and was doing roughly seventy million dollars of business a year, handling twenty percent of...
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This note was uploaded on 12/27/2011 for the course HIST 101 taught by Professor Womer during the Fall '08 term at Texas State.

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