Second Bank of the US

After the War of 1812, Congress had to created a new charter for the Second Bank because the charter for the First Bank ended before the war and they asked for a recharter at the beginning of the war but Congress's attention was in other places than rechartering the bank. The Bank was also created to stabilize the economy because while the war was taking place and even after the inflation rate was running rampant. Eventually the Bank just made matters worse by printing more paper money than gold that they had to back up the amount of money in circulation. The Bank also increased the amount of lending to other banks and business, while this may have been a good short-term fix in the economy the long run would be very different. For a few years into the late 1810's there was a boom of economic prosperity but that soon lead to the Panic of 1819. The Bank attempted to offset the inflation but actually made the price of the dollar worthless causing many people that had loans from the Bank to be unable to pay them back. With the price of the dollar useless a wave of bankruptcies, foreclosures, and also caused smaller banks to fail. this became the worst depression in US history up to that time. Even though the depression ended in two years many US citizens did not forget the Bank's role that lead the US to a depression.