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A National bank is a bank chartered by the government of a sovereign nation, and given the mandate to carry out a monetary policy designated by that government. This concept is quite different than that of a Central Bank, which makes policy on behalf of the private banking community, which policy may be at odds with that preferred by the government. A National bank may issue public credit, which is to say that the government creates money and loans it to itself, rather than going into debt to the private banking community by selling bonds. This feature has caused much controversy; proponents argue that public credit, invested in infrastructure and the promotion of science and education, promotes economic development, leading to an increase in tax revenues. Therefore, proponents say, it should be considered a sound investment, as well as a means of accomplishing necessary improvements without incurring debt.The first US national bank, called First Bank of the United States, was founded in 1791 due to the efforts of Alexander Hamilton, America's first Secretary of the Treasury. Later in 1816, partially due to Henry Clay's American SystemThe American System was an economic regime pioneered by Henry Clay which created a high tariff to support internal improvements such as road-building. This approach was intended to allow the United States to grow and prosper by itself, without foreign pro, a Second Bank of the United StatesThe Second Bank of the United States was founded in 1816, five years after the expiration of the First Bank of the United States and the chaos that ensued. This second bank was patterned after the first. The legality of the Bank was upheld in the 1819 Sup was formed, only to be later ruined by the policies of President Andrew JacksonAndrew Jackson ( March 15, 1767 June 8, 1845) was the seventh President of the United States, serving from 1829 to 1837. Sometimes nicknamed "Old Hickory," Jackson was the first president not born an aristocrat. Early life Andrew Jackson's Scotch-Irish pa and closing operations in 1836Events January Book by Maria Monk claims that she was sexually exploited in a Canadian convent February 3 United States Whig Party holds its first convention in Albany, New York. February 23 The siege of the Alamo begins in San Antonio, Texas. February 24. The US has not had a true national bank since that time; the current Federal ReserveThe Federal Reserve System (also known as the Federal Reserve or simply "The Fed") is the central bank of the United States. It was created by the United States Congress and enacted on December 23, 1913, when President Woodrow Wilson signed the Owen-Glass is not a national bank.
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