The U.S. Federal Government was required to purchase 2% of the bank capital stock. shares and to appoint 20% of the board members directors of each of those first two banks of the United States. Therefore each banks majority control was placed squarely in the hands. investor who purchase the remaining (80%) of the stock. These banks were opposed by state banks.who saw them as very large competitor and by many who insisted that they were in reality banking cartels compelling the common to maintain and support them. President vetoed legislation to renew the Second Bank of the United States.starting a period of banking. Jackson staked the success of his second presidential term on the issue of central banking.Every monopoly and all exclusive are granted at the expense of the public.which ought to receive a fair equivalent. The many millions which this act proposes to bestow on the stockholder of the existing bank must come directly or indirectly out of the earnings of the American people.
National bank currency was considered inelastic because it was based on the fluctuating of( U.S.) Treasury bonds rather than the growing desire for easy credit. If Treasury bond prices declined. A national bank had to reduce the amount of currency it had in circulation by either refusing to make loans or by calling in loans it had made already................................................
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