Monday, September 27, 2010
Second Bank of the United States
-voted by Congress in 1816 and with it a more handsome national capital began to rise. However, 1819 it led to the Panic of 1819. The bank had tightened credit in a belated effort to control inflation and a malor financial panic arose. Because of the Panic of 1819, money became deflated, there was unemployment, bankruptcies, depression, and imprisonment for debt. The Bank of the United States also foreclosed on large amounts of western farmland and it led Westerners to begin calling for land reform and to express strong opposition to the national bank and debtor's prisons. The overspeculation of frontier lands by the bank also helped cause the Panic of 1819.