Bank War Dbq

The Bank of the United States was designed to make money and build an economy. It was designed by men like Alexander Hamilton and Robert Morris, but did not benefit the common citizen as much as wealthy investors. Why did a fledgling government need to borrow millions from overseas in order to invest in a “national” bank, to turn around and then borrow the same money back and pay interest on it? The banking system developed by Alexander Hamilton and Robert Morris was prime pickings for speculators, and laid the groundwork for a history of unscrupulous activity regarding our nation’s money supply that continues to this day. The signatures on the Constitution were barely dry before corruption and

Jackson escalated this so-called "Bank War" in 1833 when he removed federal government funds that were on deposit with the BUS and distributed them to loyal state banks. That’s not right of him to do that, in my opinion it doesn’t matter if he’s president or not. It posed as a threat to him and he feared for his own power. Jackson did not even like paper money anyways. He preferred to use coins instead, so putting him on money he wouldn’t even approve of us using is idiotic.

Faced with this economic decline, came other factors that included unemployment and lack of confidence in banks (Church 100). Restoring faith in banks across the United States was one goal for FDR. As depositors lost confidence in the national bank, over $1,000,000,000 was taken out in cash and hoarded (Boardman 64). The Emergency Banking Act closed all banks for four straight days, and put them under inspection by the national government (Schraff 52). Banks were put under meticulous scrutiny by the Treasury Department. The U.S. government demanded that all hoarded gold be returned and all of the $1,000,000,000 was deposited (Boardman 65). Banks were allowed to open only under a strict system of licensing (Schraff 52). Another banking program was The Federal Deposit Insurance Corporation, or FDIC, which was created by Congress to guarantee deposits up to $5000 (Gupta). In the case

Also, the Democratic Party allowed for a more representative government and indicated a shift in power to the West to farmers, shopkeepers, and small-business owners who supported Jackson (Hart et al 260). Jacksonian democracy―the idea that common people should control the government―was also a result of the creation of the Democratic Party. Andrew Jackson’s decision to abolish the bank of the United States benefitted and changed the U.S. Jackson believed that the national bank was to the benefit of the rich, at the expense of farmers, workers, and smaller state banks (Hart et al 263). The bank also did not provide an opportunity for capitalists in the West and other regions (Hart et al 263). In 1832, Henry Clay pushed a bill through Congress to recharter the bank four years earlier than its expiration in 1836. Jackson vetoed the bill, claiming that the bank was an unconstitutional monopoly that existed to make the rich richer (Hart et al 263). Jackson

Hamilton’s creation of the first bank in the United States continues to exist in today’s economic environment. However, at that time Hamilton’s proposal was met with widespread resistance from individuals such as James Madison and Thomas Jefferson who considered the creation of a federal bank as unconstitutional. The analysis made by Gordon in his book is consistent with arguments made by to have a bank that would be effective in order to implement the powers authorized by the government as it was implied in the constitution

President Jackson acted undemocratically because of his actions against the national bank. On July 10th, 1832, Jackson sent a bank veto message to congress. The message was sent to remove the US National Bank because it was only helpful for a wealthier class for things like investments. Citizens from wealthier classes were outraged by Jackson’s actions. Former senator Daniel Webster replied to Jackson message saying, “It manifestly seeks to

Jackson’s reelection convinced him that his opposition to the bank won all of the national support. The Second Bank was established in 1816, as a success from the First Bank of the United States, whose charter was permitted to expire in 1811. The name “The Bank War” was given to the campaign, started by President Andrew Jackson in 1833, to destroy the Second Bank of the United States, this was the start to a very hateful Bank War.

Although Jackson was a hard money supporter, he was sensitive to his many soft money supporters, and made it clear that he would object to renewing the charter of the Bank of the United States, which was due to expire in 1836. When Jackson could not legally abolish the Bank of the United States before the expiration of its charter, he weakened it by removing the government’s deposits from the bank. Jackson fired two of his secretary of treasury when they refused to carry out the order because they believed that such an action would destabilize the financial system. Jackson got Roger Taney to carry out his order. Taney took the deposits out of the Bank of the

Since the national bank was now destroyed, Jackson did not have a place to put it, so he decided to divide the money among the states. This is where it went downhill since the states begin printing massive amounts of money and quickly got out of hand and resulted in one of the longest depression in U.S history. As a result, The United States begin borrowing money again and the debt soon begin.

Nicholas Biddle proved great opposition to President Jackson. He wanted to re-charter the National Bank; however, many people were against Biddle’s decision. This was particularly true of people in the west. They were still wary of a national bank, after the Panic of 1819, which involved mishaps in land speculation. Jackson shared the predominately western opinion that several small banks would be a better service to the nation than one, large bank would. A major problem with a national bank would lie in it’s willingness only to make loans to the wealthy. This would be of no use to the middleclass. Jackson would not allow Biddle to gain any more power than he already had.

The validity of President Andrew Jackson’s response to the Bank War issue has been contradicted by many, but his reasoning was supported by fact and inevitably beneficial to the country. Jackson’s primary involvement with the Second Bank of the United States arose during the suggested governmental re-chartering of the institution. It was during this period that the necessity and value of the Bank’s services were questioned.

James R. Sharp, "The Jacksonians versus the Banks: Politics in the States after the Panic of 1837" Columbia University Press 1970

Historians believe that it was Jackson 's policies that lead to the inflationary boom and the Panic of 1837, which suspended the convertibility of paper money into specie. Historians point the finger to three of Jackson 's policies. The first was Jackson 's veto of a bill to recharter the second Bank of the United States, in 1832. The federal reserves of the Bank of the United States were distributed to the state-chartered banks that were favored by Jackson. Historians believe that this led to the reserve ratio being reduced because there was no central bank regulating the banks. This led to an increase in the money supply and inflation (Sylla). The second policy was the Deposit Act of 1836, which was the distribution of the surplus in paper money to the states, after the National Debt was paid (Sylla, Rothbard 99). This extra money caused an increase in spending by the states (Rothbard 100). The last policy led to the Panic of 1837; the Specie

The Bank of the United States was technically the second bank of the U.S. since the first bank’s charter ended in 1811. The second bank held a monopoly over federal deposits, provided credit to growing enterprises, issued banknotes that served as a dependable medium of exchange, and used a restraining effect on the less well-managed state banks. Jackson didn’t trust the bank and thought it had too much power, so Jackson sought out to destroy it. There were two different groups when it came to opposition, “soft-money” and “hard-money”. Soft money supporters were progressive, they believed in economic growth and bank speculation. They supported the use of paper money and were mainly made up of bankers and allies to bankers. Hard money supporters were against expansion and bank speculation. They supported coinage only and rejected all banks that used paper money, which included the federal bank. Jackson was a hard money supporter although, he felt sympathy to the soft money supporters. Jackson could not legally end the bank before its charter expired. By removing the

There have been many controversies since the United States declared independence in 1776. One of the many domestic issues that divided American citizens was developing the First National Bank in the late 1700s. Hamilton was in favor, while Jefferson opposed and American citizens chose their side based on what they believed what was best for the country. Hamilton proposed a Report on a National Bank in December of 1790 announcing what the National Bank would include. Hamilton’s proposal included, “The bank’s stock would be worth $10,000,000. 20,000 shares would be sold privately at $400 per share ... 5,000 shares or $2,000,000 of bank stock would be bought by the U.S. government. The bank would be run by a 25-man board of directors - 20 chosen by the shareholders and 5 by the government. The bank’s president would be elected by the board of directors. Notes and bills (money) issued by the bank would be redeemable on demand ... and would be accepted by the U.S. government for all payments due. The bank’s charter would run for 20 years and would be subject to renewal by Congress. The bank would be allowed to establish branch offices in other cities; its main branch would be in Philadelphia, the nation’s capital” (http://www.digitalhistory.uh.edu/teachers/lesson_plans/pdfs/unit3_ 4.pdf). Although the first part of the bank bill, establishing a national mint, did pass with ease, supporters and opposers debated the rest of the bill, which included the development of