Why did Madison support the charter of the Second Bank of the United States in 1816 after letting the charter?Why did Madison support the charter of the Second Bank of the United States in 1816 after letting the charter of the First Bank of the United States lapse in 1811. A. Gave in to northern interests in exchange for moving the nation's capital from Philadelphia to Washington, D.C. B. Low value of... | |
E or none of the above.
Because he recognized during the War of 1812 that a national banking system was necessary in order for the nation to borrow money in emergencies and have the ability to transfer money between different sections of the country that have excess money in circulation and those sections that are lacking money in circulation.
Madison realized that the lack of the national bank on top of the depression caused by Thomas Jefferson's IDIOTIC and failed economic policy of the EMBARGO ACT was a major factor in his inability to fund the War of 1812. Every time that the US got rid of the US Bank the country went into a depression or continued the depression it was already in.
The capital was moved to Washington, DC in 1800 just in time for John Adams to move in before moving out to allow Thomas Jefferson to move in.
State banks in areas that lacked money were unable to get loans from other state banks that had money so they printed money which devalued the currency and caused inflation, but that wasn't the cause for Madison to change his mind on the US bank.
C & D - while those may have occurred, again, they were not the reason Madison changed his mind. He changed his mind on the Bank because of the inability to fund the War of 1812 through state banks and saw the need for a national bank.
whale
