The American Banking System from 1800-1810 Essay -- Banks Finances Mon

The American positing System from 1800-1810Looking back to the runner of the 19th century, it is impossible to say that any real banking system had actually been developed in the US. This is to say that, though there were roughly unrivaled hundred twenty private commercial banks that had been chartered by new present governments, the questionable system was scarcely organized. It was ad hoc in nature and directly conjugate to the merchant banking practices of the pre-independence distributor point. The years preceding the turn of the century were important because they brought a central banking authority onto the scene. In 1789 the new federal government realised a position for the Secretary of the Treasury. As we know, the first to hold this reputable title was Alexander Hamilton. He accomplished a great neck in the 11 years leading up to the year 1800. close to notably his actions were macroly responsible for the creation of the First Bank of the coupled States, whi ch was given a charter in 1791. This thrust towards central banking was scarcely to last 20 years, however. Up for review in 1811, the banks charter was not reincarnateed. This paper will argue that the failure to renew the First Bank of the United States charter was a direct result of the strong ideological differences between state concern and federalist politics. Many were very skeptical about a strong modify banking system, while others believed that the only way to create unity in the outlandish was through a highly focused central banking system. Despite the relation efficiency of the First Bank of the United States, and despite the fact that it is widely considered to be a success by economic historians, the general suspense of banking led to its demise. In other words, this paper will argue that the 1800-1810 period was one of exhaustive tension between centralists and de-centralists. This had important and lasting effects on the banking system, the most obvious bei ng that, in the following century, state banks proliferated to the point where they were chartered with abandon. As John K. Galbraith noted, every location large enough to have a church, a tavern, or a blacksmith fund was deemed a suitable place for setting up a bank. These banks issued notes, and other, more(prenominal) surprising enterprises, imitating the banks, did likewise. Even barbers and bartenders competed with banks in this respect (Flaherty, 1997 http//odur.let... ...institution, and based on the nipping conflicts between Madison and Hamilton over state vs. federal power, the bank itself became politicized. As state-led forces increased their popularity, it is wholly unsurprising that the First Bank of the US was one of the first things to go. ReferencesDeCarolis, Lisa Marie. The Precipice of Power (accessed 12-12-99)Del Mar, Alexander. business relationship Of Monetary Systems Chapter XVII Bank disruption Since The Era Of Private Coinage History of the World, 01-01 -1992 Foner, Eric., Garraty, John A (eds) Banking The ratifiers Companion to American History, Houghton Mifflin New York, 1991., pg. 191Flaherty, Edward. 1997. A Brief History of Banking in the United States (accessed 12-12-99)James Madison Debates the Constitutionality of a National Bank (accessed 12-12-99)