ad of Mr. Madison almost wholly opposing it. It became a law on
the 25th of February, 1791.

When the charter of the bank--which was granted for twenty years--
expired in 1811 the administration of Mr. Madison favored its
renewal. The eminent financier, Albert Gallatin, then Secretary
of the Treasury, informed Congress that the bank had been "wisely
and skillfully managed." The hostility to it originated in political
considerations. It was regarded as an aristocratic institution,
was violently opposed by the State banks which by this time had
become numerous, and notwithstanding the change of Mr. Madison in
its favor, the bill to re-charter was defeated. The contest however
was severe. In the House the opponents of the bill had but one
majority, and there being a tie in the Senate the re-charter was
defeated by the casting vote of George Clinton the Vice-President.
By this course Congress gave to the State banks a monopoly of the
circulating medium. The war of 1812 followed, and in the sweep of
its disastrous influence a large majority of these banks were
destroyed, their notes never redeemed, and great distress consequently
inflicted upon the people.

It was this result which disposed Congress, as soon as the war was
over, to establish for the second time a Bank of the United States.
The charter was drawn by Alexander J. Dallas who had succeeded Mr.
Gallatin at the Treasury. In the main it followed the provisions
of the first bank, but owing to the growth of the country the
capital stock was enlarged to twenty-five millions, of which the
government subscribed for one-fifth, payable wholly in its own
bonds. Individual subscribers were required to pay one-fourth in
coin and three-fourths in government bonds. The charter was again
limited to twenty years. It was this bank which encountered the
bitter opposition of President Jackson, and which was seriously
injured by his order to the Secretary of the Treasury, Roger B.
Taney, in 1834, to withhold the deposit of government funds from
its vaults. The act of President Jackson is usually referred to
as "a removal of the deposits." This is incorrect. The government
deposits were not removed from the United-States Bank, except in
the ordinary course of business for the needs of the Treasury.
But the order of the President prevented further deposits of
government money being made, and thus destroyed one of the principal
resources upon which the bank had been org