The First United States Bank had perished by the expiration of its
charter in 1811. It had been very useful, indeed almost indispensable,
in managing the national finances, and its decease, with the consequent
financial disorder, was a most terrible drawback in the war. Recharter
was, however, by a very small majority, refused. The evils flowing from
this perverse step manifesting themselves day by day, a new Bank of the
United States, modelled closely after the first, was chartered on April
10, 1816, Clay, Calhoun, and Webster being its chief champions.
Republican opponents, Madison among them, were brought around by the
plea that war had proved a national bank a necessary and hence a
constitutional helper of the Government in its appointed work.
In the management of this second bank there were disorder and
dishonesty, which greatly limited its usefulness. This, notwithstanding,
was considerable. The credit of the nation was restored and its treasury
resumed specie payments. But confidence in the institution was shaken.
We shall see how it met with President Jackson's opposition on every
possible occasion. In 1832 he vetoed a bill for the renewal of its
charter, to expire in 1836, and in 1833 caused all the Government's
deposits in it, amounting to ten million dollars, to be removed. These
blows were fatal to the bank, though it secured a charter from
Pennsylvania and existed, languishing, till 1839.