What was the purpose of the First Bank of the United States when it was established in 1791?

The establishment of the First Bank of the United States in 1791 was primarily aimed at holding government deposits and issuing paper money. This institution was created in response to the financial difficulties faced by the newly formed United States after the Revolutionary War. One of its central purposes was to centralize and stabilize the nation's economy by managing governmental funds, facilitating tax collection, and establishing a uniform currency system.

By holding government deposits, the bank was able to ensure the safe keeping of federal funds while also providing the ability to issue banknotes, which helped promote a stable and reliable currency in circulation, fostering economic growth and trust in the nation's financial system. The bank also played a crucial role in managing the national debt and promoting financial order within the emerging economy. This multifaceted role laid the groundwork for the future banking system in the United States and aimed to provide a reliable fiscal structure during a time of considerable uncertainty.