The First Bank of the United States, pushed by Treasury Secretary Alexander Hamilton, “was a hybrid central-commercial bank, modeled on the Bank of England. It was a public-private partnership, in which private investors owned 80% of its stock while the federal government owned the rest, with the Treasury conducting regular examinations of the Bank for safety and soundness. In addition to issuing a uniform currency in the form of First Bank notes, the First Bank served as the depository and fiscal agent of the federal government; supported the credit of the federal government; and regulated state-chartered banks through the First Bank’s acceptance of state bank notes or demanding their redemption in specie (i.e., gold or silver coins and bullion).” It’s charter was not renewed.
Glossary Term