The Second Bank of the United StatesThe Second Bank of the United States, located in Philadelphia, held a misleading title. In actuality, it was under private control but was granted a charter by the federal government which enabled the two separate entities to share in financial ventures which would have proven to be mutually prosperous. The Bank was comprised of twenty five directors, five of which were appointed by the government. Stocks were held by private investors, both foreign and domestic. Aside from the directors, the Bank also had a president.
Because of the unique relationship between it and the government, the Bank was awarded special privileges, among these were its being a storehouse for public funds. The Bank could then use these funds for its own purposes without paying interest. It could issue bank notes and was not required to pay state taxes. It was also understood that Congress was not to charter any comparable financial institution. In return, the Bank was to pay a bonus of one and a half million dollars, public funds were transferred and payments made with no charge and the government was to appoint five of the Bank directors.