Editing Langdon Cheves (section)

===Defeating the Second National Bank===
In addition to the physical destruction the capital, Congress faced a budget crisis; $74,000,000 was necessary to keep the government solvent. Treasury Secretary [[George W. Campbell]] resigned rather than offer a solution, and banks throughout the country had begun to suspend cash payments. Cheves himself declined President Madison's offer to serve as Campbell's successor; instead, Madison appointed [[Alexander J. Dallas (statesman)|Alexander J. Dallas]].{{sfn|Huff|1977|pp=82–84}}

To persuade banks to subscribe to government loans, Dallas suggested the imposition of new taxes and the revival of the national bank. Republicans defeated efforts to recharter the First National Bank in 1811, but  were willing to contemplate a new charter given the present crisis. Dallas presented a plan recommending $50,000,000 in bank capital, $6,000,000 in specie and the remainder in government bonds. The government would subscribe $20,000,000. John C. Calhoun, with Cheves's backing, counter-proposed a bank to serve the financial community that would bar investors from buying stock using Treasury notes issued during the war.{{sfn|Huff|1977|pp=82–84}}

On January 2, the Dallas plan came before the House. Cheves cast the deciding vote against the bill. He argued instead for an independent bank, as the Calhoun plan provided. The bill failed 80–81, but was passed on reconsideration on January 7; Madison vetoed the bill.{{sfn|Huff|1977|pp=82–84}}