First Bank of the United States

The First Bank of the United States

The Bank of the United States was designed to make money and build an economy. It was designed by men like Alexander Hamilton and Robert Morris, but did not benefit the common citizen as much as wealthy investors. Why did a fledgling government need to borrow millions from overseas in order to invest in a “national” bank, to turn around and then borrow the same money back and pay interest on it? The banking system developed by Alexander Hamilton and Robert Morris was prime pickings for speculators, and laid the groundwork for a history of unscrupulous activity regarding our nation’s money supply that continues to this day. The signatures on the Constitution were barely dry before corruption and greed laid their roots in our country’s economic foundation.
It is not difficult to imagine a scenario where massive speculation by investors would cause a bubble in the money market. In such a scenario prices of shares climb over 1000%. So intense is the frenzy to get involved in the speculation game that people forgo their regular daily duties in order to get their money invested. Commerce grinds to a halt. The Secretary of the Treasury attempts to manipulate the situation by communicating with investors and having them curb their speculations in order to stabilize prices. Fearing that they are overextending, bankers cease extending credit to investors. The bubble bursts and prices plummet.
This story could seemingly be ripped from today’s headlines. Instead, the foregoing was the story of birth of the first Bank of the United States. The banks tumultuous beginnings sent ripples through the precarious early-American economy. Hamilton endeavored to mold this economy into a capitalistic, industrial power, contrary to the wants of much of the agrarian population of the country. The Bank of the United States was his tool to direct the future of America, yet Hamilton and his bank were not without their detractors. Most

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