Question

What are the pros and cons of the creation of the national bank?

Answer 1

Answer:

The pros and cons of the creation of the National Bank were the following:

On the side of the pros, it allowed a centralized control of the monetary, exchange and economic policy by the federal government; In addition, it made the federal government control the credit and debts that private banks could issue, as well as limited the possibility that particular states could carry out monetary policies different from that of the federal government.

In turn, on the side of the contras, the creation of the National Bank greatly limited the rights of the states in economic matters, further increasing the power of the federal government over them, and fueling the growing tension between them by virtue of the practice economic incapacity acquired by the states as a result of the creation of the Bank.