dered
the decision that the right to create the bank was within the implied
powers granted by the Federal constitution, and that it was not competent
for the states to levy taxes upon the circulating notes of the bank or upon
its property except in common with other property.

The second Bank of the United States was not well managed in the early part
of its career, but was upon a firmer foundation under the presidency of
Langdon Cheves in 1819. Its policy greatly benefited commerce, but invited
bitter complaints from the private dealers in exchange, who had been
enabled to make excessive profits while the currency was below par, because
of its different values in different states and the constant fluctuations
in these values. The Bank, in the language of the report of Senator Samuel
Smith of Maryland in 1832, furnished "a currency as safe as silver, more
convenient, and more valuable [v.03 p.0346] than silver, which through the
whole western and southern and interior parts of the Union, is eagerly
sought in exchange for silver; which, in those sections, often bears a
premium paid in silver; which is, throughout the Union, equal to silver, in
payment to the government, and payments to individuals in business."

The bank in 1835 had attained a circulation of $23,075,422; loans of
$59,232,445; and deposits of $5,061,456. The institution was ultimately
destroyed by the open enmity of President Jackson, who in 1833 had
suspended the deposit of public money in its custody. This policy known as
the "removal of the deposits," excited a bitter political controversy in
which Clay and Webster led the opposition, but Jackson was supported by the
public (see JACKSON, ANDREW). The Federal charter of the bank expired in
1836. Under a charter obtained by President Nicholas Biddle from the state
of Pennsylvania, the bank continued its business, but without success, and
in 1841 it went into liquidation.

_The State Banks_.--The Bank of the United States found powerful rivals
during its life and successors after its death in the banks chartered by
the separate states. In the undeveloped state of the country in the early
days there was much unsound and speculative banking. The most successful
systems were those of New York and New England, where the surplus capital
of the country in the early days was chiefly concentrated. The least
successful banking systems were those in the newer and poorer sections of
the country, and they grew progr