The Bank of the United States was established in 1791 to serve as a repository for federal funds and as the government’s fiscal agent. President Andrew Jackson removed all federal funds from the bank after his reelection in 1832, and it ceased operations as a national institution after its charter expired in 1836.
The Second Bank was formed five years later, bringing renewed controversy despite the U.S. Although it was well managed and profitable, critics charged that the First Bank’s fiscal caution was constraining economic development, and its charter was not renewed in 1811. Proposed by Alexander Hamilton, the Bank of the United States was established in 1791 to serve as a repository for federal funds and as the government’s fiscal agent.
