The War Against the Bank

Summary

The biggest challenge of Andrew Jackson's presidency was his conflict with the Bank of the United States, established in 1816. Jackson opposed the bank, led by Nicholas Biddle, due to its private nature and perceived elitism, favoring the wealthy. In 1832, he vetoed the bank's charter renewal and subsequently moved federal deposits to smaller local 'pet banks' after firing two secretaries of the Treasury who resisted him. This decisive action resulted in Jackson's re-election and the formation of the Whig Party in opposition to his expanded presidential powers, marking a shift towards less centralized economic control in America.

Takeaways

• 💰 The main conflict of Andrew Jackson's presidency was against the Bank of the United States.
• 🏛️ The Second Bank of the United States was chartered by Congress in 1816, primarily benefiting elite stockholders from the Northeast.
• 👔 Nicholas Biddle, a Philadelphia aristocrat, was the president of the bank, which Jackson accused of operating for the benefit of its wealthy stakeholders.
• 📉 Despite holding federal government deposits, the Bank of the United States was a private institution that profited by loaning out deposits.
• 💼 Jackson, coming from a poor background, opposed the idea of a private bank controlled by a few wealthy individuals.
• 🚫 In 1832, Jackson vetoed the renewal of the bank's charter, claiming it was unconstitutional and harmful to state rights and individual liberties.
• 🎉 Following his re-election, Jackson removed all federal deposits from the bank and transferred them to smaller local banks he personally selected.
• 📜 Jackson's removal of federal deposits required the dismissal of two Treasury Secretaries before he found one willing to comply.
• ⚖️ Roger Taney, who complied with Jackson's order, later became the Chief Justice of the Supreme Court after John Marshall's death.
• 🌀 The opposition to Jackson's actions led to the formation of the Whig Party, marking a shift away from centralized control of America's monetary system.

Q & A

What was the main conflict during Andrew Jackson's presidency?

The biggest fight of Andrew Jackson's presidency was his battle against the Bank of the United States.

Who created the Second Bank of the United States?

Congress issued a charter creating the Second Bank of the United States in 1816.

What were Andrew Jackson's views on the Bank of the United States?

Jackson believed the bank was operated for the benefit of its president, Nicholas Biddle, and the elite classes, rather than for the American people.

How did Jackson view the stockholders of the Bank of the United States?

Jackson viewed the stockholders as coming from elite classes in the Northeast and felt they were unaccountable because they were appointed, not elected.

What was the financial situation of the Bank of the United States at the time?

The bank was profitable, making money by loaning out federal deposits instead of simply holding them.

Why did Jackson oppose the Bank of the United States?

As the first American president from a poor background, Jackson opposed a private bank run by wealthy stockholders, believing it was against the interests of ordinary Americans.

What significant action did Jackson take regarding the bank's charter in 1832?

When the bank's charter came up for renewal in 1832, Jackson vetoed the bill, arguing that the bank was unauthorized by the Constitution and subversive to the rights of the states.

What were the consequences of Jackson's actions against the bank?

Jackson's actions led to his re-election and the eventual collapse of the Bank of the United States, marking the end of centralized control over America's monetary system.

What did Jackson do after his re-election concerning federal deposits?

Jackson decided to remove all federal government deposits from the Bank of the United States and place them in smaller local banks, referred to as 'pet banks' by his critics.

What happened to Jackson's secretaries of the Treasury during this process?

Jackson faced resistance from his first two secretaries of the Treasury, who refused to remove the deposits. He ultimately fired both before successfully appointing Roger Taney, who complied with his directive.

What was the impact of Jackson's presidency on the U.S. monetary system?

Jackson's presidency led to a shift in economic power away from the federal government and toward private businesses, marking a period of laissez-faire economics.