Andrew Jackson vetoed the bill re-chartering the Second Bank in July 1832 by arguing that in the form presented to him it was incompatible with “justice,” “sound policy” and the Constitution. The bank’s charter was unfair, Jackson argued in his veto message, because it gave the bank considerable, almost monopolistic, market power, specifically in the markets that moved financial resources around the country and into and out of other nations. That market power increased the bank’s profits and thus its stock price, “which operated as a gratuity of many millions [of dollars] to the stockholders,” who, Jackson claimed, were mostly “foreigners” and “our own opulent citizens.” He then suggested that it would be fairer to most Americans to create a wholly government-owned bank instead, or at least to auction the Second Bank of the US’s monopoly privileges to the highest bidder. …show more content…
First, it gave incorporated state banks better note redemption rights than those accorded to ordinary Americans and thereby created “a bond of union among the banking establishments of the nation, erecting them into an interest separate from that of the people.” Second, it exempted foreign stockholders from taxation but contained a clause that would allow states to tax resident stockholders. The effect of the differential taxation, Jackson believed, would drive most of the stock overseas and thus “make the American people debtors to aliens in nearly the whole amount due to this bank, and send across the Atlantic from two to five millions of specie every year to pay the bank dividends.” Because foreigners could not vote in corporate elections, the Bank would fall under the control of its few remaining citizen stockholders. “It is easy to conceive,” Jackson argued, “that great evils to our country and its institutions” would result “from such a concentration of power in the hands of a few men irresponsible to the
Jackson thought that if charters were favored towards one area of society instead of another, then some people would view it as favoritism towards an elite society. Jackson believed that that was a direct violation of equal liberty of republicanism so he didn’t re-charter the Bank of the United States. The market revolution involved the creation of canals, roadways and railways, foreign investment, new technology, and industrialization. The fact that Jackson didn’t re-charter the Bank of the United States led to the Panics of 1837 and 1839, both of which occurred after he left office. Watson argued that Jackson was extremely self-confident.
Andrew Jackson didn’t want the bank to get rechartered so after the bank flew through Congress he vetoed it, Congress was unable to override Jackson’s veto. Then Jackson proceed to order his secretary of the treasury to move future government funds to state banks called pet banks. While that was happening the government would remove their funds from the United States bank till it was in a financial panic. Jackson held his ground while Congress censuring him that the removal of the United States bank was a misuse of his presidential power. The United States went into an uncontrolled inflation and Jackson issued the Specie Circular which declared the federal government would only accept hard money for purchasing public lands.
The Second Bank of the United States was chartered in 1816 for a term of 20 years. The Bank Recharter Bill in 1832 was a bill created to renew the charter of the Second Bank because of Jackson’s opposition. Nicolas Biddle was the owner of the Bank of the United States during 1812. He underestimated Jackson’s power and thought that Jackson would not trying to veto the Recharter Bill as Biddle introduced it to the Congress. However, Jackson had been distrusting the bank because before his career, he was damaged by the bank credit.
In 1791, Treasurer Alexander Hamilton proposed the First Bank of the United States, also called the First Bank, which, with the necessary-and-proper clause, allowed the government to act on the four rights stated in the Constitution: “the rights to collect taxes, borrow money, regulate trade among states, and support fleets and armies.” The charter of the First Bank caused a debate that Secretary of State, Thomas Jefferson, a large opponent of a central banking system, later described as “the most bitter and angry contest ever known in Congress before or since the union of the states.” The intensity of it is conveyed in “Cabinet Battle #1” in Hamilton: An American Musical, in which the debate between Hamilton and Jefferson is recreated in
President Jackson spent a lot of his two terms attempting to devastate the National Bank, which had been sanctioned by Congress in 1816 as a national place for a monetary arrangement. Jackson felt that the bank was uncalled for imposing the business model and that it mishandled or may manhandle its critical power. Jackson put it all on the line to crush the bank, a campaign that just about expense him the administration in 1834 and earned him an official reprimand by the Senate. Regardless, by 1837, he had ended the bank by withdrawing federal deposits from it. For the duration of his life, Jackson was scrutinized for his unfaltering conclusions and despotic way, yet he in any case substantiated himself a sharp and mindful lawmaker.
The debate over the function and definition of the state that would best uphold American liberty began during the Constitutional convention, when the Federalist and Anti-Federalist factions emerged as the bulwarks of their respective ideologies. After the Constitution was ratified, these factions intensified into political parties, justifying their own arguments with varying interpretations of the Constitution. The Federalist party, embodying the Federalist faction, was led by Alexander Hamilton, while the Democratic-Republican party, carrying on many of the ideals of the Anti-Federalist party, was led by Thomas Jefferson. As Madison had noted in Federalist 10, “liberty is to faction what air is to fire…” Both of these men hoisted the preservation
The Federal Government deposited all it’s money in the Bank of the United States. Once Jackson was reelected in office he ordered the Secretary of the Treasurer to put the federal government’s money into state’s banks that are also called pet banks. Once the federal funds were gone and the Bank’s charter ran out the Bank went out of business. Just because Jackson didn’t like the bank he purposely destroyed it. The House of Representatives voted that the federal government’s money should stay in the Bank of the United States but Jackson did not care and ordered that the fund be placed into state banks (Jackson’s Economic Issues).
He strongly opposed the National Bank. He believed that the National Bank only contributed to the wealthy people of the US, not the common people. Jackson also stingily believed in the fact that state banks are more helpful than the National Bank. By stopping the bank, he hoped to make the government smaller. This decision made the government less involved.
This dealt with the Bank War, which was the main economic dealing of the time in which President Jackson prohibited the re-charter of the Bank of the United States. Jackson found the bank unconstitutional and felt that the bank only benefited the rich. Through this, Jackson stirred public support and took the class issue to the head for many people. Some viewed Jackson's decision on the Bank as the wrong one, however, the Jacksonian Democrats supported him because they viewed it as an attempt to back equality and abolish a monopoly in the fingers of the elite rich. The Charles River Bridge v. Warren Bridge case in 1837 was another example of an issue related to monopoly and the equality of economic opportunity.
Accessed October 12, 2015. http://www.digitalhistory.uh.edu/disp_textbook.cfm? smtID=3&psid=3923. “President Jackson 's Veto Message Regarding the Bank of the United States; July 10, 1832.” Yale Law School Lillian Goldman Law Library The Avalon Project.
Andrew Jackson became president in 1829 and was not happy with the Second National Bank because he believed in a weak government which keeps all people equal and the bank made the rich richer and the government stronger. He also believed that the bank was unconstitutional, “Entertaining this opinion, and deeply impressed with the belief that some of the powers and privileges possessed by the existing bank are unauthorized by the Constitution, subversive of the rights of the States, and dangerous to the liberties of the people, I felt it my duty at an early period of my Administration to call the attention of Congress to the practicability of organizing an institution combining all its advantages and obviating these objections. ”(Andrew Jackson, page 284). The privileges and powers of the bank was given to the stock holders of the bank, majority who were foreigners and many of the Americans who were middle class could not enjoy these privileges and Andrew Jackson was against the exclusion of the common man from the bank, “The powers, privileges, and favors bestowed upon it in the original character, by increasing the value of the stock far above its par value, operated as a gratuity of many millions to the stockholders....
In document L it states "It sows... the seeds of jealousy and ill-will against the government of which its author is the official head." This means the bank was housed be both senete and house and Jackson didn't want
In the document “Jackson Battles the Bank”, it shows Jackson fighting off a monster, or the national bank, with a veto stick. Jackson was fighting to destroy the national bank. He wanted to do this because it favored the rich and not the common people. He was fighting for people to have equal rights. Instead of having no bank at all, he came up with the idea to create state banks which wouldn’t be as powerful as the National Bank.
After the war the United States was in debt that caused Hamilton to come up with the idea of a national bank. In call for the House of Representives, Hamilton wanted to be supported by them to obtain public credit. Hamilton wanted to reduce the national debt and stabilize the nations national currency even by increasing it .Hamilton ’s report on the bank was seemed to be a financial prosperous administration to finance and help improve the publics credit .Hamilton seen this as a great idea and then began to acknowledge the advantages of the bank . Hamilton saw that the bank could potentially not only just help the government but could help the citizens in their personal lives as well.
The bank was immensely beneficial to a small group of individuals, and harmful to the rest of the nation. Therefore, Jacksons action were due to his promise to defend and support the “common man” of the nation in order to withhold American values and his own ideals of