By the end of this section, friend will:Explain the causes and also effects of proceeding policy debates around the duty of the federal federal government from 1800 to 1848

Suggested Sequencing

This Decision suggest can be assigned alongside the Andrew Jackson, bank Veto Message, 1832 Primary source to more highlight the conflict surrounding the national Bank.

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The fate that the U.S. Economy weighed greatly on chairman Andrew Jackson’s mind in 1832 together he disputed signing the rejuvenation of the charter that the Second financial institution of the joined States. Congress had granted the national financial institution a brand-new charter for two decades starting in 1816, but financial institution advocates tried come renew the charter early to pressure its passage through Congress throughout an election year. The stage was collection for a showdown in between Jackson and 2nd National financial institution president Nicholas Biddle.

Jackson had to sweet whether to kill the national bank because the his constitutional opposition to it and also his are afraid that the financial institution was an engine of aristocracy. He likewise had come decide exactly how he to be going to difficulty the precedent of the constitutionality as determined by previous congresses and presidents, and the can be fried Court.

Biddle had actually to decide just how to react to Jackson’s opposition to the national bank. He thought the constitutional questions were resolved and that the bank had great utility because that the growth of the American economy. Biddle had to job-related with allies in congress to devise the finest strategy to combine their own hand against Jackson’s opposition. The result clash was among the most significant battlegrounds the the mid-nineteenth-century politics.

Consistency and continuity store financial industries stable and also predictable for everyone involved. Uncertainty and also instability are always bad for business. Safeguarding the future of the financial institution was thus a high priority for merchants and bankers who relied top top the country’s jae won markets. However farmers worried the the financial institution worked in opposition come the nation’s autonomous principles. The opponents described it as a “many top monster” and also argued the the financial institution was proactively creating an aristocracy the undermined the interests of plain people..


Nicholas Biddle, the 3rd and last president the the second Bank the the joined States, became President Andrew Jackson’s nemesis during the “Bank War.”

During the election campaign of 1832, Jackson’s adversaries organized a brand-new political party, the nationwide Republicans, under Henry Clay. Clay thought that forcing Jackson to take it a was standing on the national bank would threaten to embarrass the president and guarantee his very own election. The financial institution of the United claims was a main component of the American device Clay supported, which proposed using a strong main bank and high tariffs to money a an extensive system the internal improvement projects such together railroads and also canals. Biddle travelled to Washington, DC, come lobby members of congress to support the bank’s recharter. Regardless of the best efforts of the Jacksonian enemies of the bank, congress passed the recharter bill through a solid majority in both houses.

Jackson quickly vetoed the bill and also defended his decision on constitutional principles, speak the constitution does no specifically provide Congress the power to create a nationwide bank. The president also questioned the supreme Court’s decision in McCulloch v. Maryland, suggesting that the Court have to not offer as the exclusive authority or final arbiter the the Constitution. Instead, Jackson insisted the each branch had actually the capacity to decide because that itself whether a proposed measure up was constitutional. Jackson additionally attacked the undemocratic character of the bank. Conference had detailed it through exclusive privileges, that pointed out, and granted it a monopoly that insulated it from competition v state banks. Furthermore, foreign nationals owned more than one-fifth the the bank’s stock. In closing, Jackson emphasized the the “rich and an effective too often bend the plot of federal government to your selfish purposes.” The wealthy Americans was standing to benefit from the bank’s recharter, he argued, not farmers, mechanics, and laborers.

With no opportunity of overriding the president’s veto in Congress, Biddle maneuvered the bank’s resources against Jackson. He called in loans, making that more complicated for banks and businesses come borrow money. If american felt the loss of the bank of the United says directly, he reasoned, they would turn against Jackson and also support recharter. Regrettably for Biddle, however, he had overplayed his hand, and the bank’s initiatives alienated those who might have been many inclined to defend it. Service leaders and also Congress turned versus him.

As the so-called financial institution War escalated, Jackson recommended relocating the federal government’s deposits out of the financial institution of the united States, and Treasury Secretary i get it Taney started transferring them to pro-administration state banks.


This 1833 lithograph, entitled The Downfall of mommy Bank, applauds Jackson’s order because that the removal of federal funds from the financial institution of the unified States. Jackson holds up an “Order because that the remove of the general public Money.” Nicholas Biddle (depicted v devil’s horns) and his pendant scatter together the financial institution building falls roughly them.

Jackson’s opponents ridiculed this “pet banks” together a source of corruption, yet to no avail. The removed of the government’s store crippled the commonwealth bank, and it liquified in 1836. The next year, another financial panic, the scare of 1837, swept the country. Guided in his veto decision by his constitution convictions and also political exigencies, Jackson’s win over the bank doomed central banking in the United claims until the development of the commonwealth Reserve in the beforehand twentieth century.

Review Questions

1. Andrew Jackson justified vetoing the bill to recharter the bank of the United says for all the adhering to reasons except

the Jacksonians believed the financial institution contributed to U.S. Treatment in the war of 1812 and also other warsJackson thought the financial institution was unconstitutional and also that the supreme Court had actually erred in McCulloch v. Marylandthe Jacksonians thought the financial institution acted together a syndicate and got exclusive privileges indigenous Congressforeigners controlled more than 20 percent the the bank’s stock

2. Which of the following presents the events of the “Bank Wars” in the correct chronological order from earliest to most recent?

McCulloch v. Maryland, Jackson vetoes the bill rechartering the second Bank, Biddle call in loans, Jackson proposal moving federal government funds to pet banksMcCulloch v. Maryland, Biddle call in loans, Jackson recommends moving government funds come pet banks, Jackson vetoes the bill rechartering the second BankBiddle phone call in loans, McCulloch v. Maryland, Jackson proposal moving federal government funds to pet banks, Jackson vetoes the invoice rechartering the second BankMcCulloch v. Maryland, Jackson proposal moving federal government funds come pet banks, Biddle calls in loans, Jackson vetoes the invoice rechartering the 2nd Bank

3. Throughout the financial institution War, Nicholas Biddle was

a influential member the Congress that wanted to reveal Andrew Jackson’s antagonism towards the bank of the united Statesa political ally of Andrew Jackson’s that wanted come close the financial institution of the joined Statesthe chairman of the bank of the unified States, who wanted its charter renewedAndrew Jackson’s secretary of the Treasury who moved money from the financial institution of the United says to Jackson’s pet banks

4. The scare of 1819 to be a turning point in U.S. Economic background because

it guarantee the choice of Andrew Jackson as presidentit brought about the decision in McCulloch v. Maryland, stating the bank of the United claims was constitutionalit demonstrated to “hard currency” supporters that only gold- and also silver-backed money would keep a viable economy, offering credence come Jackson’s beliefs around the national bank in the 1830sit brought about the nomination the Henry Clay, who, as president, would have guaranteed the extension of the bank of the unified States

5. In spite of being a member that the Republican Party, which of the complying with presidents signed the rebirth charter of the financial institution of the United says in 1816?

Thomas JeffersonJames MadisonJames MonroeJohn Quincy Adams

6. Opponents of the bank of the United says argued against it for every the following reasons except

the bank favored eastern company intereststhe bank catered to the elitethe financial institution had been granted a syndicate over state banksfarmers were guaranteed necessary loans indigenous the Bank

7. The devastation of the bank of the United states led to

the election of Martin valve Buren as presidentthe production of the nationwide Republicans together a new political partythe end of central banking in the United states until the production of the commonwealth Reservethe instant rechartering of the financial institution of the united States

Free response Questions

Explain Andrew Jackson’s decision to veto the second Bank of the unified States.Explain why the Jacksonians opposed the second Bank of the unified States regardless of congressional efforts to make the institution much more democratic.

AP exercise Questions

EXCERPT 1 “The existing corporate body, denominated the president, directors, and company of the financial institution of the united States, will have actually existed at the time this act is intended to take impact twenty years. The enjoys an to exclude, privilege of bank under the government of the basic Government, a syndicate of the favor and support, and, together a important consequence, virtually a syndicate of the foreign and also domestic exchange. The powers, privileges, and favors bestowed upon that in the original charter, by boosting the worth of the share far over its par value, operated together a gratuity of countless millions to the stockholders. . . . It is no our very own citizens only who are to receive the bounty of our Government. Much more than eight numerous the share of this financial institution are organized by foreigners. Through this act the American Republic proposes virtually to make them a existing of some numerous dollars.”

Andrew Jackson, bank Veto Message, July 10, 1832

EXCERPT 2 “The veto is an extraordinary power, which, despite tolerated through the Constitution, was no expected, through the convention, to be offered in ordinary cases. It to be designed for instances that precipitate legislation, in unguarded moments. Therefore restricted, and also it has actually been thus restricted by all former presidents, it can not be mischievous. Throughout Mr. Madison’s management of eight years, there occurred but two or three instances of that exercise. Throughout the critical administration, I perform not currently recollect that it was once. In a period little increase of 3 years, the existing chief magistrate has actually employed the veto 4 times. We currently hear fairly frequently, in the progression of measures through Congress, the statement the the president will certainly veto them, urged together an objection to their passage.”

Henry Clay, speech to the U.S. Senate on chairman Jackson’s veto of the rechartering of the bank of the joined States, July 10, 1832

Refer come the excerpts provided.

1. A significant difference in between Andrew Jackson and also Henry Clay in their arguments about the financial institution of the United states concerned

the truth that the financial institution dealt just with the elitethe constitutionality that the bankClay’s id that the veto need to be supplied liberallythe level of the president’s strength over the bank

2. In vetoing the recharter of the financial institution of the joined States, Andrew Jackson to express his not say of which supreme Court decision?

Marbury v. MadisonDartmouth v. WoodwardMcCulloch v. MarylandOgden v. Gibbons

3. I m sorry of the following ideal describes the an inspiration for the event described in the excerpts?

A disagreement end the suitable interpretation and use that the president’s veto powerThe failure of the agricultural industry, due to the absence of accessible fundingClay’s desire for a political win to match Jackson’s winning of the Nullification CrisisLingering animosity between Clay and also Jackson over the “Corrupt Bargain” in the election of 1824

Primary Sources

Jackson, Andrew. “Veto Message” in Jackson vs. Biddle’s Bank: The struggle Over the 2nd Bank the the united States. Second ed. Edited by George Rogers Taylor, 27. Lexington, MA: D.C. Heath and Company, 1972.

Suggested Resources

Hammond, Bray. Banks and Politics in America from the transformation to the civil War. Princeton, NJ: Princeton university Press, 1957.

Jackson, Andrew. “Veto Message” in Jackson vs. Biddle’s Bank: The struggle Over the second Bank the the joined States. 2nd ed. Edited by George Rogers Taylor, 10–29. Lexington, MA: D.C. Heath and also Company, 1972.

Lamoreaux, Naomi. Insider Lending: Banks, personal Connections, and Economic advancement in Industrial new England. Cambridge, UK: Cambridge college Press, 1996.

Remini, Robert V. Andrew Jackson and the financial institution War. Brand-new York: Norton, 1967.

Remini, Robert V. The Life of Andrew Jackson. Brand-new York: Harper & Row, 1988.

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Taylor, George Rogers ed. Jackson vs. Biddle’s Bank: The battle Over the second Bank the the joined States. Second ed. Lexington, MA: D.C. Heath and also Company, 1972.