Andrew Jackson and the "Bank War" - 1985 Words | Essay Example - IvyPanda According to early Jackson biographer James Parton, Biddle "was a man of the penquick, graceful, fluent, honorable, generous, but not practically able; not a man for a stormy sea and a lee shore". Jackson, as a war hero, was popular with the masses. Within months, cotton prices entered a full free-fall. The next years War of 1812 bankrupted the US Treasury, and the same state banks that opponents of the Bank had claimed were perfectly capable of managing American finance turned out to be incredibly unreliable. president in the legislative process as evidence of the Banks corrupting influence on free government. Why was the Bank War of 1832 Important? - History in Charts As the champion of the common man, Jackson opposed the concentration of power in the hands of the powerful fewlike Biddle, who was from a prominent Philadelphia familyat the expense of ordinary farmers and workers. The fear of a wealthy upper-class oligarchy was prominent in the American psyche at the time. [43][44], Although slavery was not a major issue in Jackson's rise to the presidency,[38] it did sometimes factor into opposition to the Second Bank, specifically among those in the South who were suspicious of how augmented federal power at the expense of the states might affect the legality of slavery. It voted to continue allowing the deposit banks to serve as fiscal agents and to investigate whether the Bank had deliberately instigated the panic. When questioned by Jackson about this earlier promise, he said, "I indescreetly said so, sir; but I am now compelled to take this course." The Bank printed much of the nation's paper money, which made it a target for supporters of hard money, while also restricting the activities of smaller banks, which created some resentment from those who wanted easy credit. The bank would act as the Treasury Departments agent, collecting revenues and disbursing payments. John C. Calhoun, a representative from South Carolina and strong nationalist, boasted that the nationalists had the support of the yeomanry, who would now "share in the capital of the Bank". during the presidency of Andrew Jackson (18291837). Old Hickory, now a war hero and natural populist, hoped to leverage his popularity for a bid for the presidency in 1824. The circular, he claimed, was necessary to prevent excessive speculation. Clay even remarked that Should Jackson veto it, I will veto him, but neither were truly prepared for the counterattack Jackson had in mind. Sep 1833: In response Biddle purposefully stockpiled bank reserves and contracted available credit, beginning a mild economic panic that the US soon recovered from. Taney's influence grew immensely during this period, and Cambreleng told Van Buren that he was "the only efficient man of sound principles" in Jackson's official cabinet. It was undervalued and thus rarely circulated. The public preferred much simpler explanations of the banks role instead of long, in-depth analyses. Finally, Jackson closed the veto with an appeal to ideals of economic equality and meritocracy in government, championing the rights of the common man and explicitly calling for his supporters to overthrow the politically elite, embodied in the Bank. The self-important statements of Biddle, who claimed to have more power that President Jackson, helped fuel sentiments like Benton's. . The Banks failed response to the panic sparked a major reshuffling in leadership and propelled a younger board member, Nicholas Biddle, to the presidencyof the Bank. [172] He characterized the B.U.S. In the end, Jackson won a major victory with 54.6% of the popular vote, and 219 of the 286 electoral votes. [123] Jackson remained unconvinced of the Bank's constitutionality. Bank War Summary and Definition of the Bank War of 1832 Definition and Summary: What was the Bank War of 1832? [305], Jackson's destruction of the B.U.S. [240], Attorney General Taney was immediately made Secretary of the Treasury[237][246] in order to authorize the transfers, and he designated Kendall as special agent in charge of removal. [232], Under the Bank charter terms of 1816, the U.S. Secretary of the Treasury was empowered, with Congress, to make all decisions regarding the federal deposits. The Jacksonian standard of unregulated monetary policy would drag the American economy down for decades until at last, after countless preventable recessions, the Federal Reserve was established in 1913. [6], President Madison and Treasury Secretary Albert Gallatin supported recharter of the First Bank in 1811. Benton replied by criticizing the Bank for being corrupt and actively working to influence the 1832 election. Jacksoniansgathered in Rochester, New York to form a new political party. [144], On January 6, 1832, bills for Bank recharter were introduced in both houses of Congress. "[140] Most historians have argued that Biddle reluctantly supported recharter in early 1832 due to political pressure from Clay and Webster,[139][140][143] though the Bank president was also considering other factors. Hamilton believed that a such a bank, independent of direct control by the government, would regulate American credit and currency based on expertise rather than political will. 25 June 2020 Reuters Benjamin Netanyahu has long championed Jewish settlements in the occupied West Bank Israeli Prime Minister Benjamin Netanyahu says he is planning to effectively annex parts. "He's a chip of the old block, sir", Jackson said of the younger Duane. One of Jacksons biggest priorities was to ensure the bank would not get rechartered after his election in 1828. Westport, CT: Greenwood Press, 1999. In 1823, he was unanimously elected its president. Several states, including Kentucky, fed up with debt owed to the Bank and widespread corruption, laid taxes on the National Bank in order to force it out of existence. Shortly after, the Globe announced that the President intended to stand for reelection. [259] He accused Jackson of ignorance on financial matters.[260]. With this accomplished, the administration would permit re-authorization of the national bank in 1836. Schlesinger portrays Jackson's economic program as a progressive precursor to the New Deal under Franklin D. For the Whigs, this was blatantly unconstitutional. [332] The United States would not have another central banking system again until the Federal Reserve was established in 1913. The Bank War | Miller Center The Presidency In-Depth Exhibits The Bank War Democratic ideals and technocratic pragmatism clash By Sam Spencer Photo: Wikimedia Commons A Brief History of American Central Banking and Currency Jackson, however, routinely used the veto to allow the executive branch to interfere in the legislative process, an idea Clay thought "hardly reconcilable with the genius of representative government". They write new content and verify and edit content received from contributors. [83] Jackson's statements against the Bank were politically potent in that they served to "discharge the aggressions of citizens who felt injured by economic privilege, whether derived from banks or not". [190] Jackson's message criticized the Bank as a violation of states' rights, stating that the federal government's "true strength consists in leaving individuals and States as much as possible to themselves. Arthur M. Schlesinger Jr., who wrote The Age of Jackson (1945), adopts a similar theme, celebrating Jacksonian democracy and representing it as the triumph of Eastern workers. [282], The economy improved significantly in 1834. [77][112], On February 2, 1831, while National Republicans were formulating a recharter strategy, Jacksonian Senator Thomas Hart Benton of Missouri launched an attack against the legitimacy of the Bank on the floor of the Senate, demanding an open debate on the recharter issue. . was a safe depository for "the people's money" and called for an investigation. [301] Including when taking into account the recession engineered by Biddle, the economy expanded at an unprecedented rate of 6.6% per year from 1830 to 1837. Prior to the Bank War, SBUS President Nicholas Biddle had the national bank operating smoothly and helping virtually all social classes. While Jackson was truly a representative of the common man, he had strong opinions regarding many federal institutions including the national bank, then known as the Second Bank of the United States (SBUS). Finally, Lawrence told his interrogators that he was a deposed English kingspecifically, Richard III, dead since 1485and that Jackson was his clerk. Financial writer William M. Gouge wrote that "the Bank was saved and the people were ruined". With Jeffersonians in control, the charter for the original Bank expired in 1811. Why did the Bank War reinforce and justify the two-party system? forces that they would have to step up their campaign efforts. Jackson defends his firing of Treasury Secretary William Duane and reasserts his powers as President. The Bank War | Miller Center Jacksonians. [177] Jackson perfected his anti-Bank themes. For some, his . An overview of the Bank War and the main players involved. This was a significant economic event in the. [325] Thousands of people in manufacturing districts lost their jobs as credit dried up. Historian Ralph C.H. Nevertheless, he and Clay were still optimistic that the majority of the American public supported the Bank. [189] On one side were Old Republican idealists who took a principled stand against all paper credit in favor of metallic money. [230] McLane met Duane in December 1832 and urged him to accept appointment as Treasury Secretary. [171] Further, while previous presidents had used their veto power, they had only done so when objecting to the constitutionality of bills. Bank War Bank War Cartoon depicting the political conflict between Andrew Jackson and Nicholas Biddle over the Second Bank of the United States Date 1832-1836 [1] Parties Anti-Bank forces Pro-Bank forces Lead figures Andrew Jackson Martin Van Buren Amos Kendall Roger B. Taney Francis Blair Thomas Hart Benton James K. Polk Henry Clay Daniel Webster To learn more about US history, check out this timeline of the history of the United States. [317][318][319], In March 1837, Hermann, Briggs & Company, a major cotton commission house in New Orleans, declared bankruptcy, prompting the New York bill brokerage company, J.L.