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Right after the War of 1812, tariffs were not the huge political issue they would become in the 1820s. So the Tariff of 1816 passed pretty easily. This tariff was part of a plan to improve the US economy. People believed that a tariff would protect American manufacturing (which was just getting started) from British competitors who were more established.
Eventually, the tariff and other things helped America get more manufacturing. But in the short term, it did not completely do that. For example, the US faced a "panic" (like a bad recession) in 1819 that was partly due to lack of manufacturing.
By the end of the 1820s, the tariff became an issue that split the north and the south and led to the first southern threats to secede from the Union.
In 1801, when Thomas Jefferson became president, he opposed to the existence of banking institution, considering it against the Constitution, but at the first renewal of the law's,his decision was overturned. Nathan Rothschild, president of Bank of England, understood the potential of America and lend money to some countries, becoming the official banker of the United States Government.
For that he was the one who supported the American Bank, Rothschild warned them: "If not accepting passes toward central banking system, the U.S. will wake up in a disastrous war." He then ordered to British troops to "giveto the shameless Americans a lesson and to restore the status of the colony". It added to the war from 1812, a second war with England, which has increased the external debt of U.S.A. to 127 million U.S. dollars.
In May 1816, President James Madison signed a law allowing the creation of a U.S. Bank. Inflation, debt burden and lack of institutions for collection of taxes were just some of the reasons to support this decision making.
In 1819, the banking institution was declared constitutional by John Marshall of the Supreme Court of Justice , who said that Congress has the secret power to create banks .
After the wrong administration of the Bank, by its first president, who was Prime Minister of the Navy, Captain William Jones, the Bank had to make loans and mortgage properties, which led it to bankruptcy, thus leading to increased prices and the emergence of unemployment.
In 8 January 1835, Jackson paid the last installment of the national debt and it was the only time in history that U.S. debts were fully paid.
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