Clinton - Congress power to establish a central bank and...

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Clinton, George Clinton, George, c.1686–1761, colonial governor of New York (1743–53), b. England; father of Sir Henry Clinton . He entered (1708) the British navy and rose to the rank of admiral in 1747. Through family connections, Clinton was appointed (1741) governor of New York and arrived in the colony in 1743. Under the influence of James De Lancey he tried to conciliate the assembly and acquiesced on the issue of increased legislative control over revenues. Clinton later quarreled with De Lancey; his attempts to regain his lost powers failed; and his administration resulted in a permanent weakening of royal government in New York. Clinton was recalled (1753) to England and later served (1754–60) in Parliament. The First Bank The first bank was established under the auspices of the Federalists as part of the system proposed by Alexander Hamilton to establish the new government on a sound economic basis. Congress approved a charter for the bank despite the argument that the Constitution did not give
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Unformatted text preview: Congress power to establish a central bank and the charge that the bank was designed to favor mercantile over agrarian interests. The bank had a head office in Philadelphia and branches in eight other cities. The government subscribed one fifth of the capital of $10 million, but a loan of $2 million was immediately made to the government. In addition to acting as a fiscal agent for the government, the bank conducted a general commercial business. It was well managed and paid good dividends, but its conservative policies and its restraining influence on state banks, through its refusal to accept state bank notes not redeemable in specie, antagonized more exuberant business elements, especially in the West. These interests combined with agrarian opponents of the bank to defeat its rechartering, despite the support given the bank by the Madison administration. The bank concluded its affairs and repaid its shareholders....
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This note was uploaded on 01/04/2012 for the course AMH AMH2010 taught by Professor Pietrzak during the Fall '10 term at Broward College.

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