The Bank At Work

Once it was created, the Bank capably fulfilled its mandate, adding other responsibilities as it evolved. It held most of the Treasury's deposits, and transferred money between branches of the government, at no cost. After 1800, the Bank helped collect customs bonds in the cities in which it had branches: Boston, New York, Baltimore, Charleston, Washington (after 1802), Savannah (after 1802) and New Orleans (after 1805). In addition, the Bank helped pay off the interest on the public debt, administered the Treasury's foreign exchange operations and supplied the Mint with bullion and foreign coins. The Bank supervised the commercial banking sector, maintaining a "friendly cooperation" with legitimate bank, while using its conservative lending policies and creditor status to curb poor banking management. It effectively became the lender of last resort for other banks.

The Bank contributed significantly to the economic growth and security of the nation. It increased confidence in the stability of the American debt so much that debt was traded at par value soon after the Bank was established. Credit was expanded, and the currency became stable. After 20 years in operation, the nation had a much better monetary system, and was well poised for further economic development.