Welcome to today's episode of the "Today in History" serial, where I bring you daily historical facts and events of the current date.
On February 25. 1791. the First Bank of the United States was created!
The Bank of the United States was created on behalf of first Secretary of the Treasury, Alexander Hamilton's suggestion and was part of his federal, fiscal and monetary expansion plan.
Hamilton had the goal to pay off the war debts caused by the Revolutionary War, raise money for the newly created government and to have a statewide currency.
The Bank's main function was to issue credit to the government and private parties in order to improve the internal development of the U.S.
Another purpose it was used for is acting as the depository for collected taxes.
After consulting with all his cabinet members, president George Washington signed the "bank bill" on February 25. 1791. and the First Bank of the United States was brought into existence on a twenty-year charter running to 1811.
The Bank was a private company, and initially sold $8 million worth of stocks to domestic and foreign investors, while $2 million worth of stocks was bought by the government itself.
The building was built on the South Third Street in Philadelphia.
After the charter expired in 1811. a french born banker, Stephen Girard purchased the building and most of the stocks of the Bank.
In it's place he opened his own bank, "Girard's Bank" on May 18. 1812.
In 1816. the Second Bank of the United States was created, at 420 Chestnut Street, also in Philadelphia, with the building built in 1818.
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Hope you enjoyed this short introduction of the First Bank of the United States!
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