The banking controversy of the 1830’s became known as The Bank War. It was a campaign started by Andrew Jackson in 1833 to destroy the Second Bank of the United States. He believed that his opposition to the bank had won him national support during his reelection campaign. The Second Bank had been created in 1816 as a successor to the First Bank, whose charter had previously expired. The Second Bank was chartered only for a term of twenty years due to the concerns of many people in Congress. The Bank was to act as a depository for federal funds and paid national debts, but it was answerable only to the directors and stockholders. The supporters of this bank were mainly people involved in the industrial and commercial ventures. On the other …show more content…
Jackson had been financially damaged a tightening of bank credit early in his business career. He had a strong distrust of financial institutions throughout the rest of his life. At first, Jackson didn’t really pick a side on the bank issue. He was, however, concerned about the constitutional rights involved in the idea of paper money replacing gold and silver. In January of 1832 Biddle’s supporters in Congress introduced the Bank re-charter legislation. They believed that the current Congress would re-charter the bank and they believed that Jackson wouldn’t risk the loss of votes in vetoing the Bank. Jackson’s hatred for the bank became more of an obsession. Jackson vetoed the Bank Re-charter Bill, and ordered the federal government’s deposits removed from the Bank and placed in state banks. These state banks were privately owned and it led to large inflation and the Panic of 1837. The inflation caused by this is held responsible for the government holds and laws regarding national and private banks. Jackson and Henry Clay argued quite a bit. Clay strongly advised Congress that they should renew the bank charter. He claimed that the country was in the middle of a revolution, although not yet a bloody one. He also claimed that Jackson had all of the power and that if Congress did not act the government would fail. Clay asked that the senate impeach Jackson, accusing him of abusing the constitution and the nation’s laws. The people of the United States blamed Biddle for the banking crisis and Jackson won 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 was very against the growth of the new upcoming banking system in the
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.
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
Jackson 's push to abolish national banks other wise known as "the bank wars" was one of his more well known pushes for small government. In 1832, Jackson had vetoed a bill calling for an early renewal of the Second Bank’s charter, but renewal was still possible when the charter expired
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.
This is just one of the many examples of Jackson’s vetoes. While Jackson vetoed 12 bills in his time of presidency, other presidents at the time vetoed either none or no more than about 7. At the time, 12 vetoes was quite a lot compared to the other presidents. He had vetoes so many laws because he wanted to be the only person running the government. This is another example of his abuse of power.
From what I read and what he said, I thought it sounded like he didn’t want to shut down the United States Bank. And then in Document 5, Webster acted like Jackson should put an end to the bank by saying, “It manifestly seeks to inflame the poor against the rich, it wantonly attacks whole classes of the people, for the purposes of turning against them the prejudices and resentment of the other classes.”
In this attack, he moved about 20% of United States’ money into private banks. These banks were known as ‘’pet’’ banks because they politically supported Andrew Jackson. This causes what we know as The Bank War. Andrew Jackson enlarged credit by doing away with the bank. Andrew Jackson then moved the money from those banks into the private ones that only supported him.
Jackson ignored the Supreme Court. He continued forcing indians out the west. This journey is known as the Trail of Tears. One-fourth of indians died from this journey. Just because Jackson was put on the $20 bill doesn’t mean he did not do bad things.
This concern about the farmers led to president Jackson supporting their belief that the nation should use silver or gold to back the currency not just banking notes. This
One of the biggest thing that Jackson had done as a president was in 1832. Jackson vetoed a bill that would renew the second bank charter early. Jackson stated “I will kill it!”. He said this because he didn’t like the bank at all and he believed that it made the rich richer and the poor poorer. He said in his veto message “It is easy to conceive that great evils to our country and its institutions might flow from such a concentration of power in the hands of a few men irresponsible to the people.”
According to “Andrew Jackson’s Veto Message,” “It is easy to conceive that great evils to our country…might flow from such a concentration of power in the hands of a few men irresponsible to the people.” Jackson believed that the bank was corrupt, as “more than a fourth of it was owned but foreigners, and the (rest) is held by a few hundred of our own citizens, chiefly of the richest class.” Thus making it easy to take advantage of and throw off the economy because of it being privately owned. This choice was good, although many people viewed it as a bad discussion such as Daniel Webster, who said in “Daniel Webster’s Reply to Jackson’s Bank Veto Message,” “(President Jackson’s message) extends the grasp of (the chief executive) over every power of the government.” Without getting rid of the bank, it could’ve led to many issues in the future because of it being privately owned, and although vetoing it and getting rid of the bank led to the Panic of 1837, a financial depression, keeping the national bank would have led to future problems due to it being privately owned and easy to take advantage of if you owned part of it.
Andrew Jackson had a dislike for Henry Clay so he started a veto process to stop the bank that Clay was involved with. Jackson also believed this bank to be unconstitutional. After Jackson destroyed the bank he made sure the money was returned back to the states where he thought it belonged and would help the economy grow. At that time in our history Andrew Jackson did what was acceptable, today it is not.
Andrew Jackson believed that he was a guardian of the Constitution .He was fixing the faulty interpretation of the constitution put forth by his fellow congress men. Jackson saw the banks as “monopoly of foreign and domestic exchange” he believed the wealthy people were using the banks to line their pockets with more money. One of Jackson’s opponents, Daniel Webster of Mass. . He believed that Jackson had no true facts on his assessment, in fact he saw the veto as alarming. In westers view, Jackson was using the constitutional argument to support his own grab for power.