National banks of the United States are established under the National Banking Act and are subject to federal regulation. [See Chapter XIII.] National banks in other countries have certain relations with their respective governments, and a bank of this character has been twice established in the history of the United States. In each case, the national government founded and conducted such a bank with branches. This bank, with its two periods of existence, was known as the Bank of the United States. The idea of it was conceived immediately after the adoption of the Constitution, by Alexander Hamilton, then Secretary of the Treasury, and the act of Congress incorporating the first bank became law on February 25, 1791. The duration of the bank was limited to the 4th of March, 1811.

The second Bank of the United States, located at Philadelphia with branches in the several states, was created by an Act of Congress March 3, 1816, and was conducted until 1836, when a renewal of its charter was denied. In consequence of this, reorganization was effected by means of authority of the legislature of the State of Pennsylvania. The bank assigned in 1841, its affairs being finally liquidated in 1856 and resulting in the payment in full of interest and principal of liabilities to depositors and note holders; the shareholders, however, received nothing on their investment in stock of the bank.

During President Tyler's administration, efforts were made to establish another national bank to be conducted by the United States government, but the president vetoed the bill and no similar bank was ever re-established.

The first bank in the United States was the Bank of North America, elsewhere referred to, by which exclusive privileges of a monopolistic character were sought, and these were soon proven to be inconsistent with the general character of an American institution. It was opened for business on January 1, 1782.

[See Chapter XVI - "The Federal Reserve System."]