[76][111], 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. With four months remaining until the November general election, both parties launched massive political offensives with the Bank at the center of the fight. [316][317][318], 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. Opponents of the Bank defeated recharter by a single vote in both the House and Senate in 1811. Most Old Republicans had supported Crawford in 1824. "[27], One such example was in Kentucky, where in 1817 the state legislature chartered forty banks, with notes redeemable to the Bank of Kentucky. during the presidency of Andrew Jackson (1829–1837). Jackson called the passage of these resolutions a "glorious triumph", for it had essentially sealed the Bank's destruction. Another part of McLane's reform package involved selling government lands and distributing the funds to states, a measure consistent with Jackson's overall belief in reducing the operations of the central government. president in the legislative process as evidence of the Bank’s corrupting influence on free government. Finally, a vote was taken, and it was decided 25–19 to expunge the censure. [31] Calhoun eventually dropped out to run for vice president, lowering the number of candidates to four. In 1816 the second Bank of the United States was created, with a 20-year federal charter. [274], The House of Representatives, controlled by Jacksonian Democrats, took a different course of action. As expected, McLane and Butler were confirmed. [217] Their rationale was that Biddle had used the Bank's resources to support Jackson's political opponents in the 1824 and 1828 elections, and additionally, that Biddle might induce a financial crisis in retaliation for Jackson's veto and reelection. Economic problems which reverberated through the economy eventually led to major depression in the Panic of 1837 (which occurred during the term of Jackson's successor, Martin Van Buren ). [189] 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. [113] The Globe, which was vigorously anti-B.U.S., published Benton's speech, earning Jackson's praise. The Bank War was a political struggle that developed over the issue of rechartering the Second Bank of the United States (B.U.S.) Their campaign strategy was to defeat Jackson in 1832 on the Bank re-authorization issue. [93][94] This echoed the arguments of Calhoun during the charter debates in 1816. [158] Francis Blair at the Globe reported these efforts by the B.U.S. A panic ensued (1837). Jackson was enraged by this so-called "corrupt bargain" to subvert the will of the people. [52], The Jacksonian coalition had to contend with a fundamental incompatibility between its hard money and paper money factions, for which reason Jackson’s associates never offered a platform on banking and finance reform,[53][54] because to do so "might upset Jackson's delicately balanced coalition". [108][109][110] The address signaled to pro-B.U.S. of this essay is to discuss the Andrew Jackson Administration. Members of the planter class and other economic elites who were well-connected often had an easier time getting loans. [212] The House also stood solidly for Jackson. administrators, including Biddle, and Jackson continued to do business with the B.U.S. [37] Jackson ran under the banner of "Jackson and Reform", promising a return to Jeffersonian principles of limited government and an end to the centralizing policies of Adams. Jacksonians from pursuing their attack on the B.U.S. [66][67][68], The Second Bank's reputation in the public eye partially recovered throughout the 1820s as Biddle managed the Bank prudently during a period of economic expansion. [286], Censure was the "last hurrah" of the Pro-Bank defenders and soon a reaction set in. It was undervalued and thus rarely circulated. As such, declared Jackson, Congress was obligated to consult the chief executive before initiating legislation affecting the Bank. Biddle had orchestrated the maneuver in a desperate effort to keep the institution alive rather than allowing it to dissolve. [165][173][174] The practical implications of the veto were enormous. Supporters of Jackson became known as Jacksonians and, eventually, Democrats. Saying “The bank is trying to kill me, but I will kill it,” Jackson issued a potent veto message. The proposals included some limited reforms by placing restrictions on the Bank's powers to own real estate and create new branches, give Congress the ability to prevent the Bank from issuing small notes, and allow the president to appoint one director to each branch of the Bank. until December 1829. "[134] Although he did not fire McLane, he kept him at a greater distance. [124][128][129] The following day, McLane delivered his report to Congress. He planned to use "external pressure" to compel the House to adopt the resolutions. Jackson concluded from his victory in that election that he had a mandate not only to refuse the bank a new charter but to destroy as soon as possible what he called a “hydra of corruption.” (Many of his political enemies had loans from the bank or were on its payroll.). [193], Too late, Clay "realized the impasse into which he had maneuvered himself, and made every effort to override the veto". Sure enough, the following day, a notice appeared in the Globe stating that the deposits would be removed starting on or before October 1. [239] After weeks of clashing with Duane over these prerogatives, Jackson decided that the time had come to remove the deposits. "If you apply now," McLane wrote Biddle, "you assuredly will fail,—if you wait, you will as certainly succeed. The closure of the Bank of the United States results in a weaker currency. [63] Its role in managing the nation's fiscal affairs was central. [307], Woodbury ensured that banks' specie ratios remained consistent with those of the early 1830s. Jacksonians—gathered in Rochester, New York to form a new political party. [34] As president, Adams pursued an unpopular course by attempting to strengthen the powers of the federal government by undertaking large infrastructure projects and other ventures which were alleged to infringe on state sovereignty and go beyond the proper role of the central government. administrators, including Biddle, and Jackson continued to do business with the B.U.S. 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. Andrew Jackson 1767-1845 A brief biography The End of the Bank War On May 6, Jackson and his entourage embarked on a tour of the country, mostly in the Northeast, where pro Union sentiment was especially strong. They called themselves Whigs after the British party of the same name. Business leaders in American financial centers became convinced that Biddle's war on Jackson was more destructive than Jackson's war on the Bank. [25] Andrew Jackson, previously a major general in the United States Army and former territorial governor of Florida, sympathized with these concerns, privately blaming the Bank for causing the Panic by contracting credit. [221][233][234] Duane demurred, and when Jackson personally intervened to explain his political mandate[214] to ensure the Bank’s demise,[235] his Treasury Secretary informed him that Congress should be consulted to determine the Bank's fate. It transferred Treasury funds without charge. For support, Biddle turned to the National Republicans—especially Henry Clay and Daniel Webster—turning the issue into a political battle. [257] Calhoun denounced the removal of funds as an unconstitutional expansion of executive power. [132][138], Administration figures, among them McLane, were wary of issuing ultimatums that would provoke anti-B.U.S. [154], Biddle traveled to Washington, D.C. to personally conduct the final push for recharter. If Biddle presented any of the state banks with notes and demanded specie as payment, the banks could present him with the drafts to remove the deposits from the Bank and protect their liquidity. [207] "The campaign is over, and I think we have won the victory", Clay said privately on July 21. This bias led the bank to not support western expansion, which Jackson favored. Supporters of the Bank regarded it as a stabilizing force in the economy due to its ability to smooth out variations in prices and trade, extend credit, supply the nation with a sound and uniform currency, provide fiscal services for the treasury department, facilitate long-distance trade, and prevent inflation by regulating the lending practices of state banks. [182] Jackson cast himself in populist terms as a defender of original rights, writing: It is to be regretted that the rich and powerful too often bend the acts of government to their selfish purposes. [262] Biddle rejected the idea that the Bank should be "cajoled from its duty by any small driveling about relief to the country. [295] He was deemed insane and was institutionalized. [276], When House committee members, as dictated by Congress, arrived in Philadelphia to investigate the Bank, they were treated by the Bank's directors as distinguished guests. [8] The chaos of the war had, according to some, "demonstrated the absolute necessity of a national banking system". Shortly after, the Globe announced that the President intended to stand for reelection. [69][70] According to historian Bray Hammond, "Jacksonians had to recognize that the Bank's standing in public esteem was high. articles, essays, pamphlets, philosophical treatises, stockholders' reports, congressional committee reports, and petitions. He blamed Jackson for the loss of his job. The American Indian Removal policy of President Andrew Jackson was prompted by the desire of White settlers in the South to expand into lands belonging to five Indigenous tribes. Encyclopaedia Britannica's editors oversee subject areas in which they have extensive knowledge, whether from years of experience gained by working on that content or via study for an advanced degree.... Andrew Jackson, oil on canvas by Thomas Sully, 1845; in the National Gallery of Art, Washington, D.C. 51.8 × 43.8 cm. "[158][162], Contrary to the assurances Livingston had been rendering Biddle, Jackson determined to veto the recharter bill. [156][205] Overall, the pro-Bank analysis tended to soberly enumerate Jackson's failures, lacking the vigor of the Democratic Party press. I will first talk about Jackson’s war on against the U.S. Bank. The mission of the Abbeville Institute is to preserve what is true and valuable in the Southern tradition. Gold and silver was the only way of having a "fair and stable" currency. When the bank’s federal charter finally expired, Biddle secured a state charter from Pennsylvania to keep the bank operating. Jackson proceeded to host a large dinner for the "expungers". [28], In 1819, Monroe appointed Nicholas Biddle of Philadelphia as Government Director of the Bank. [73] In January 1829, John McLean wrote to Biddle urging him to avoid the appearance of political bias in light of allegations of the Bank interfering on behalf of Adams in Kentucky. It assisted certain candidates for offices over others. [308] In 1836, President Jackson signed the Deposit and Distribution Act, which transferred funds from the Treasury Department’s budget surplus into various deposit banks located in the interior of the country. Immediately after Webster spoke, Clay arose and strongly criticized Jackson for his unprecedented expansion, or "perversion", of the veto power. A reaction set in throughout America’s financial and business centers against Biddle's maneuvers, compelling the Bank to reverse its tight money policies, but its chances of being rechartered were all but finished. The aftermath of the Bank War indeed had a profound influence on the country, especially the Presidency of Martin Van Buren. [279] Nevertheless, this episode caused an even greater decline in public opinion regarding the Bank, with many believing that Biddle had deliberately evaded a congressional mandate. The Andrew Jackson 's War On Against The U.s. Bank 848 Words | 4 Pages. In 1823, he was unanimously elected its president. Jackson ordered that no more government funds be deposited in the bank. [147] On February 23, 1832, Jacksonian Representative Augustin Smith Clayton of Georgia introduced a resolution to investigate allegations that the Bank had violated its charter. [65][83][84][85][86] According to historian Robert V. Remini, the Bank exercised "full control of credit and currency facilities of the nation and adding to their strength and soundness". Some found the Bank's public–private organization to be unconstitutional, and argued that the institution's charter violated state sovereignty. [113][104][105], After replacing most of his original cabinet members, Jackson included two Bank-friendly executives in his new official cabinet: Secretary of State Edward Livingston of Louisiana and Secretary of the Treasury Louis McLane of Delaware. Summarize the events and the results of the election of 1832. Duane's appointment, aside from continuing the war against the Second Bank, was intended to be a sign of the continuity between Jeffersonian ideals and Jacksonian democracy. [200] He also had tens of thousands of Jackson's veto messages circulated throughout the country, believing that those who read it would concur in his assessment that it was in essence "a manifesto of anarchy" addressed directly to a "mob". Clay demanded that he retract his statements. Jackson's veto and the decreasing likelihood of obtaining a new federal charter meant that the Bank would soon have to wind up its affairs. [51] In the end, Jackson won the election decisively, taking 56 percent of the popular vote and 68 percent of the electoral vote. In an effort to promote sympathy for the institution's survival, Biddle retaliated by contracting Bank credit, inducing a mild financial downturn. [221] The administration was temporarily distracted by the Nullification Crisis, which reached its peak intensity from the fall of 1832 through the winter of 1833. In 1839, Biddle submitted his resignation as Director of the B.U.S. [335] Hammond, in his Banks and Politics in America from the Revolution to the Civil War, renews the criticism of Schlesinger. [133] The Globe refrained from openly attacking Secretary McLane, but in lieu of this, reprinted hostile essays from anti-Bank periodicals. In late 1836, the Bank of England began denying credit to American cotton producers. In 1829 and again in 1830 Jackson made clear his constitutional objections and personal antagonism toward the bank. This took place just weeks before the expiration of the Bank's charter. [192] It also regularly violated its own charter. [280], The Democrats did suffer some setbacks. This is an often overlooked episode in American history and Remini does a very good job covering it. In the future, Congress would have to consider the president's wishes when deciding on a bill.[171]. officers, but Biddle insisted that only one's qualifications for the job and knowledge in the affairs of business, rather than partisan considerations, should determine hiring practices. as merely an agent of the executive branch, acting through the Department of the Treasury. forces that they would have to step up their campaign efforts. The debt added up to approximately $24 million, and McLane estimated that it could be paid off by applying $8 million through the sale of government stock in the Bank plus an additional $16 million in anticipated revenue. [114][115], McLane, a confidant of Biddle,[116][117] impressed Jackson as a forthright and principled moderate on Bank policy. [325][326] Farmers and planters suffered from price deflation and debt-default spirals. Equality of talents, of education, or of wealth can not be produced by human institutions. Daniel Webster charged Jackson with promoting class warfare. [46][47][48] The Jacksonian movement reasserted the Old Republican precepts of limited government, strict construction, and state sovereignty. The national bank was observed by Jackson to jeopardize economic stability and served as a monopoly on country’s currency. When questioned by Jackson about this earlier promise, he said, "I indescreetly said so, sir; but I am now compelled to take this course." [106][107] He called for a substitute national bank that would be wholly public with no private stockholders. The Whigs, meanwhile, began to point out that several of Jackson's cabinet appointees, despite having acted in their positions for many months, had yet to be formally nominated and confirmed by the Senate. newspaper editors, Jackson secured an overwhelming election victory. On April 4, it passed resolutions in favor of the removal of the public deposits. By vetoing the recharter bill and basing most of his reasoning on the grounds that he was acting in the best interests of the American people, Jackson greatly expanded the power and influence of the president. [89][90] They claimed that by lending money in large amounts to wealthy well-connected speculators, it restricted the possibility for an economic boom that would benefit all classes of citizens. The treasury secretary could no longer regulate lending requirements in the deposit banks as a result of this legislation. [311][312], Another major problem was that bountiful crop harvests in cotton from the United States, Egypt, and India created a supply glut. [267][275] Led by Ways and Means Committee chairman James K. Polk, the House declared that the Bank "ought not to be rechartered" and that the deposits "ought not to be restored". before its 20-year term ended in 1836. The veto message was crafted primarily by members of the Kitchen Cabinet, specifically Taney, Kendall, and Jackson's nephew and aide Andrew Jackson Donelson. Jackson’s decisive reelection in 1832 was once interpreted as a sign of popular agreement with the Democratic interpretation…. President Andrew Jackson announces that the government will no longer use the Second Bank of the United States, the country’s national bank, on September 10, 1833. Biddle stated that he would have preferred that Jackson, rather than remaining silent on the question of recharter, would have made a public statement declaring that recharter was a matter for Congress to decide. [65], When Jackson entered the White House in March 1829, dismantling the Bank was not part of his reform agenda. [285] However, it did have a positive effect on the economy, as did good harvests in Europe. [65][81] Jackson suggested making it a part of the Treasury Department. [282][283][284] The Coinage Act of 1834 passed Congress on June 28, 1834. In the words of historian Bray Hammond, "This was a very large 'if,' and the secretary came to realize it. Financial writer William Gouge wrote that "the Bank was saved and the people were ruined". He believed that the Bank was a corrupt institution concentrated in the rich and creating political power for those of wealth. According to historian Edward E. Baptist, "A state bank could be an ATM machine for those connected to its directors. [211] In Alabama, Georgia, and Mississippi, Jackson won with absolutely no opposition. The recharter bill easily passed both houses of Congress in 1832. [330] When Whig candidate William Henry Harrison was elected in 1840, the Whigs, who also held a majority in Congress, repealed the Independent Treasury, intending to charter a new national bank. was purported to be. The directors replied that they could not produce these books because they were not in the Bank's possession. [220] The committee's minority faction, under Jacksonian James K. Polk, issued a scathing dissent, but the House approved the majority findings in March 1833, 109–46. [238], Jackson's position ignited protest not only from Duane but also McLane and Secretary of War Lewis Cass. The nullification crisis was a conflict between the U.S. state of South Carolina and the federal government of the United States in 1832–33. [3] The B.U.S. There was a strong movement to increase the power of the federal government. Let us know if you have suggestions to improve this article (requires login). The Second Bank of the United States was established as a private organization with a 20-year charter, having the exclusive right to conduct banking on a national scale. Jacksonians framed the issue as a choice between Jackson and "the People" versus Biddle and "the Aristocracy",[197][199] while muting their criticisms of banking and credit in general. The list grew to 22 by the end of the year. notes were receivable for federal bonds. Jacksonians and National Republicans in Congress to rebut Jackson's claims about the Bank's currency. He sent a letter of acceptance to Jackson on January 13, 1833, and was sworn in on June 1. Once … [151] Biddle, working through an intermediary, Charles Jared Ingersoll, continued to lobby Jackson to support recharter. [59], Because of the failure to emphasize the distinction between hard money and paper money, as well as the Bank's popularity, the Second Bank of the United States was not a major issue in the 1828 elections. The result was that the recession that began with Biddle's contraction was brought to a close. [55] The aversion to paper money went back before the American Revolution. Troubled by accusations that he had switched sides, Jackson said, "I had no temporizing policy in me. He helped finance and distribute thousands of copies of pro-B.U.S. [201] This, despite the fact that two-thirds of the major newspapers supported Bank recharter. Jackson, as a war hero, was popular with the masses. Nearly all politicians joined the Republican Party, founded by Jefferson. [26] In Mississippi, the Bank did not open branches outside of the city of Natchez, making small farmers in rural areas unable to make use of its capital. And so Jackson felt he had to get rid of it. [166], The executive branch, Jackson averred, when acting in the interests of the American people,[167] was not bound to defer to the decisions of the Supreme Court, nor to comply with legislation passed by Congress. Senator George Poindexter of Mississippi received a $10,000 loan from the Bank after supporting recharter. Jackson set out to destroy … [292], On January 30, 1835, what is believed to be the first attempt to kill a sitting President of the United States occurred just outside the United States Capitol. After southerners discovered his connection to Van Buren, he was defeated by fellow Tennessean John Bell, a Democrat-turned-Whig who opposed Jackson's removal policy. under Bank President William Jones through fraud and the rapid emission of paper money.
2020 result of jackson’s bank war