The Evils of Necessity:A Time Line of the National Bank
December 14, 1790Alexander Hamilton proposes a Bank of the United States.December 16, 1790Patric Henry opposes the National bank because it is unconstitutional.February 25, 1791President Washington asks his cabinet members for opinions on the National Bank.Thomas Jefferson submitted that such a Bank was unconstitutional and would alsoviolate the yet to be ratified 10th Amendment. Alexander Hamilton submitted thatCongress's power to collect taxes, was also power to create a national bank. Notconvinced by either side, Washington sided with Hamilton as it was Hamilton's jobas Secretary of the Treasury to know what he was doing.December 12, 1791The Bank of the United States opens it's doors in Philadelphia.January 21, 1793Hamilton and the National Bank are accused of corruption and mismanagement.Opponents to the National Bank call for the demise of the unconstitutional Bank.Congress fails to act.February 20, 1811Congress refuses to let the National Bank renew its Charter on the grounds thatthe Bank is unconstitutional.March 4, 1811,The Bank of the United States is dissolved.January 20, 1815President Madison vetoes a bill that would create a second National Bank.January 8, 1816Faced with financial hardship from the War of 1812, Congress proposes a 2ndNational Bank. The Bill also allows the President to suspend hard currency.March 14, 1816The 2nd National Bank gets Congressional approval.January 1, 1817The 2nd National Bank opens for business.January 9, 1832The 2nd National Bank applies for it's Charter renewal 4 years early.July 10, 1832President Jackson vetoes the Bank's recharter on the grounds that the Bank isunconstitutional.January 1835With the National Bank powerless, Jackson successfully pays off the nations debtleaving the U.S. with a surplus of $5,000.July 11, 1836Paper money results in tremendous inflation in property value. President Jacksonissues a Specie Circular mandating that land payments be made with gold andsilver.July 4, 1840President Van Buren approves the Independent Treasury which allows the Federalgovernment to control it's own money.June 7, 1841Henry Clay, on behalf of the Whig party, introduces legislation to abolish theIndependent Treasury in hopes to replace the national banking system with aFederal Bank.July 28, 1841The Senate passes a bill, sponsored by the Whig party, to revive the 2nd NationalBank by creating a Federal Bank that would be called The Fiscal Bank of the UnitedStates. (A State chartered Bank for the District of Columbia that would be used bythe U.S. Government. ) President Tyler vetoes the bill as unconstitutional.