Jackson vs. The Bank

1. Jackson vs. The Bank

2. 2nd National Bank • Most powerful bank in the country • Held government funds and issued money • President of Bank: Nicholas Biddle • Jackson’s Hatred for the Bank… • Distrust in Banks after losing money • Thought Bank had too much power • Could influence Congress through loans • Favored the wealthy and hurt the “common man”

3. 2nd National Bank • Bank need a charter to operate • 1832 – Biddle asks for a renewal, even though it did not expire till 1836 • 1832 – Election year, Biddle thought Jackson would agree to keep supporters on his side • Jackson took the risk

4. The War… • Jackson vetoes Congress vote to renew Bank charter • Claimed bank was… • Unconstitutional • Monopoly • Became main issue of the Presidential campaign of 1832 • Henry Clay calls Jackson a tyrant and a president that wanted too much power • Jackson claimed he was a defender of the people • Jackson wins reelection in 1832

5. The War… • Jackson’s agenda • Destroy the Bank before its charter ended • Deposited government funds in state banks (aka = pet banks) • Biddle fights back • Makes it harder for people to borrow money • Jackson wins the war, but the economy would be the victim http://www.history.com/videos/jackson-censured-in-bank-war#jackson-censured-in-bank-war

6. Panic of 1837 • State banks issued too much money, which resulted in inflation • Inflation = an increase in prices and a decrease in the value of money • Jackson left office with a “puffed-up” economy • Martin Van Buren is elected president in 1836 • Fear about the state of economy spread throughout the country • Banks ran out of gold and silver, banks defaulted, and a depression followed

7. Its all about the twenties… • Jackson can be found on the $20 bill • The Controversy • Should Jackson be honored on the $20 bill for his actions??? • Leading “exterminator” of Native Americans • His war against the National Bank