The Second Bank of the United States
1816–1841
The nation made its second attempt at creating a central bank in 1816 following an economic downturn. But, like its predecessor, the institution’s charter was not renewed.
After peace with Britain came in 1815, Congress rejected new efforts to create the bank. In the months that followed, however, the federal government’s financial position deteriorated amid a broader economic downturn. Many state-chartered banks had stopped redeeming their notes, which convinced Madison and his advisers that the time had come to move the country toward a more uniform, stable paper currency. In his annual report, Dallas again called for the establishment of a national bank. After much debate and a couple of additional attempts, Madison finally signed in April 1816 an act establishing the second Bank of the United States.
