Bank of the United States

The brainchild of Alexander Hamilton, the Bank of the United States is chartered in 1791 by a Federalist-dominated congress over the objections of James Madison and the Republicans. The original charter expires in 1811 and Republicans gleefully watch it die, but excessive printing of Treasury notes to finance the War of 1812 force Madison to seeking its reinstitution in 1816. Its early efforts to restore solidity to U.S. currency by favoring "specie" (gold and silver) over paper money shake the commodities markets, and when the price of cotton drops in 1818, American finances go into "free fall." In 1819, Pres. Monroe names Nicholas Biddle to the board of directors and in 1822, fellow directors elect him bank president. Biddle sets about putting bank affairs in order while "shunning the limelight for himself and the institution." This changes under the influence of Sen. Henry Clay, a major Jackson rival. Jackson...