The Bank War

1. The Bank War Adam Levitt Sam Harel

2. Before the Bank War… • Jackson disliked large businesses • Disliked the Bank of the United States (“moneyed monster”) • Most powerful bank in America • Paper notes were stable, unlike notes issued by private banks • Made the B.U.S. an important part of America’s economy • The B.U.S. was a private establishment (consisted of elite investors) • Nicholas Biddle- president of the B.U.S. • Many people thought he had an unconstitutional amount of power over America’s economy • Some thought that the bank went against the idea of American democracy • Westerners were against the B.U.S. Why? • The bank foreclosed on western farms, made the East wealthier

3. Why General J never know’d you was a doctor before Oh! Dear Nick! I am dreadful sick!

4. Bank War • 1832 • Henry Clay and Daniel Webster presented Congress with a bill to renew the US Banks charter • Clay wanted to make it an election issue in 1832 even though the charter expired in 1836 • Clay was Jackson’s main opponent, thought the bank would help him win • If Jackson signed it, he would hurt his western support • If he vetoed, his would lose the support of wealthy and influential in the east

5. Clay’s failure • Jackson vetoed the bill • Wealthy and influential in east were in a minority and feared Jackson anyways • Declared bank unconstitutional • Went against supreme court case McCulloch vs. Madison • Jackson viewed executive branch as more powerful or important than the judicial

6. Consequences • Amplified power of the presidency • Reasons based on opinion and not on constitutionality • Claiming president has the power equivalent of 2/3 majority in Congress • President was senior partner in executive and legislative partnership