{"id":10701,"date":"2017-10-17t10:00:56","date_gmt":"2017-10-17t17:00:56","guid":{"rendered":"\/\/www.catharsisit.com\/hs\/?p=10701"},"modified":"2017-10-16t15:40:58","modified_gmt":"2017-10-16t22:40:58","slug":"bank-of-the-united-states-apush","status":"publish","type":"post","link":"\/\/www.catharsisit.com\/hs\/ap\/bank-of-the-united-states-apush\/","title":{"rendered":"bank of the united states: apush topics to study for test day"},"content":{"rendered":"

the bank of the united states was a central bank proposed by alexander hamilton and established in 1791. among other functions, the private bank issued paper money, completed commercial transactions, and collected government tax revenues as well as lent money to the government. to be successful on bank of the united states apush questions, make sure you understand why the bank was created and why it was controversial.<\/p>\n

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photo by roamingpro<\/a><\/figcaption><\/figure>\n

what is the bank of the united states?<\/h2>\n

after the revolutionary war, america suffered widespread economic instability. the country\u2019s debt was steep, and many states were bankrupt. in order to stabilize the economy, alexander hamilton, the secretary of the treasury, proposed an ambitious financial plan that would establish a national bank, create a federal mint, and impose excise taxes. the bank was conceived as a way to improve and build the nation\u2019s credit, as well as create a common currency.<\/p>\n

president washington signed hamilton\u2019s bill into law, and what would later be known as the first bank of the united states was opened in 1791 with a 20-year charter. at the time it was opened, the bank was the largest financial institution and corporation in america. it opened branches in major port cities, establishing a vast financial network across the country. the bank was successful as both a commercial bank and as the government\u2019s fiscal agent. its banknotes were widely accepted and gave the country a stable national currency. although not intended to regulate the banking system, by accumulating state banknotes it could control the flow of money and credit, thus helping control inflation. <\/p>\n

despite its success, the first bank of the united states faced much criticism, and in 1811 its charter was allowed to expire. in 1816 the second bank of the united states was created in the wake of the financial difficulties brought on by the war of 1812<\/a>.<\/p>\n

important years to note for the bank of the united states: <\/h2>\n