Lehrman American Studies Center

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The motivation behind this paper is to analyse from the perspective of a historian of economic thought and policy the rationale and implications of the destruction of the Second bank of the United States. The account is valuable as an account of the way in which economic thought, political ideology and vested interests can combine to shape policy. The debate also raised issues which are relevant to our modern economic system. The case for state supervision over the banking system is considered by almost all economists as to be so self-evident. But this has not always been the case and the debate over the banks future is a pointed reminder of this fact. Some of the arguments furnished against the bank may challenge some of the complacently held axioms of modern thought.