JANUARY 1, 1817 - SECOND NATIONAL BANK OF THE US OPENS
This was the third quasi national bank of the US — following the Bank of
North America (1781-1785) and Bank of the United States (1791-1811).
While called a “national” bank, it was not public but actually a
commercial/corporate bank with the power to issue money directly (just
like its two predecessors). It issued initially 20 times more money than
it had in reserve its reserves as loans. This led to financial
speculation and large corporate profits. A year later, it stopped
issuing loans, resulting in a severe contraction of the money supply —
which led to massive bankruptcies and the Panic of 1819. President
Andrew Jackson believed the bank was a threat to the nation. He vetoed a
bill in 1832 renewing the bank’s charter (license).