The Battle with Biddle
The formation of the Second Bank of the United States came at the end of the War of 1812, in the year 1819. It was granted a twenty year charter. For nearly 200 years, the battle between the Bank’s president, Nicholas Biddle, and President Andrew Jackson remains one of the most discussed events in history. Many historians believe Andrew Jackson was simply out to destroy the Bank of the United States. Jackson is quoted telling Martin Van Buren, “the Bank is trying to kill me, but I will kill it” (Bernard Weisberger, 12). Was the issue of recharter a personal vendetta, or did Andrew Jackson act responsibly in accordance to the law?
Nicholas Biddle was named President of the Bank of the United States in 1823. In 1828, Andrew Jackson was elected President of the United States. Biddle felt President Jackson’s role was inferior to his own. By the end of the 1820’s, their personal battle had turned to war, as well as turning politics into theater. Jackson did not believe in bank notes, but rather believed that all bank notes should be backed with silver and gold, also referred to as specie. The Bank, in the meantime, was doing seventy-million dollars a year in business, circulating twenty-one million dollars of its own notes (Weisberger, 11). Financially, America was flourishing. Settlers were starting businesses, buying land, and creating the American dream.
With America thriving in its own successes, Biddle decided to apply for recharter four years early in the election year of 1832. Andrew Jackson was running for re-election, and Biddle saw this as an opportunity. Recharter passed the Senate 20-8 and the House 107-85 (Weisberger, 11). It was now in the hands of the President, and Biddle was...
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...r he thought first-rate civic strategy required it. Jackson succeeded in destroying the Bank of the United States. Perhaps the most ironic part of it all is that the man who did not believe in paper money now has his face plastered on the most popular paper currency in circulation in the United States.
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Perkins, Edwin J. “Lost Opportunities For Compromise in the Bank War: A Reassessment of Jackson’s Veto Message.” Business History Review. 61.4 (1987): 531-542. General OneFile. Web. 10 Apr. 2011.
Weisberger, Bernard A. “The Bank War: History of First U.S. Government Bank.” American Heritage. July-Aug. 1997: 10-12. General OneFile. Web. 12 Apr. 2011.
Old Hickory himself, President Andrew Jackson, knew the importance of having the common man behind him in a democracy; even if in reality he was not behind the common man. Jackson, who sought divine intervention, used the loyalties of believers to push through his agenda against the banks. The banks became “the evil giant” (the Goliath) that sought to destroy this new country along with its citizens. Jackson used his knowledge of religion to gain support and public opinion as he convinced them that his motives were righteous. In Harry L. Watson’s book, Liberty and Power, he wrote;
ank War was the campaign began by President Andrew Jackson in 1833. Campaign main purpose was to destroy the Second bank. After his reelection he was convinced that he has won national support. Second bank was established in 1816. Second Bank’s charter renewal bill was vetoed by President calling it was an early renewal in 1832 however it was still possible in 1836 when Charter expired to stop happening that Jackson lower the economic bank power. On October 1, 1833 Jackson made an announcement that federal funds will no longer will be in Bank of the United States, instead it will be in State Banks. Nicholas Biddle president of the banks was waiting for Jackson actions, he started giving loans, and contracting credit. His thinking was that financial
Divine, Robert A. America past and Present. 10th ed. Upper Saddle River, NJ: Pearson Education/Longman, 2013. 245. Print.
Ernst, Joseph Albert. Money and politics in America, 1755–1775; a study in the Currency act of
view supporting those ideals and it comes as no surprise that Jackson stressed them in his veto message of 1832. Yet, paying attention to the message in context lends a lot of support to the view that Jackson was a true democrat and a true protector of the common man. Established in 1816, the Second Bank of the United States had, by the 1830's, become a tool of the rich Northeastemers that failed to respond to the people and states' needs.
Metzler, Allan H. A History of the Federal Reserve, Vol I and II. University Press Books, 2002
In fighting against an aristocratic economic overtake, like many before, the Jacksonian Democrats were vehemently opposed to the encroachment upon individual economic equality. For Andrew Jackson, that threat was the Second Bank of the United States. Criticizing the National Bank because, “it appears that more than a fourth part of the stock is held by foreigners and the ...
... An American History of the World. 4th ed. of the book. W.W. Norton, 2012, 671. 2.)
George Browm Tindall, David Emory Shi. American History: 5th Brief edition, W. W. Norton & Company; November 1999
Jackson was a strong opponent of the unequal and aristocrat dominated economic structure of most of America. He was very against the Bank of America because he believed it to have a monopoly on banking and felt that it was owned and run unjustly by wealthy aristocrats who were not always Americans (B). It must also be noted however, that while the Bank of America was undoubtedly corrupt (Nicholas Biddle is known to have given sums of money to close friends, and was also known to regularly bribe newspapers and similar media.) it also did what it was supposed to do very well. It provided money and credit to many of the lower classes that Jackson defended, and also was the source of much economic growth. As a result of this veto Jackson established pet banks in many Western areas to try to appease his main group of supporters and build up the rivalry between the agrarian South and West and the industrial North (C). Many immigrants found that one of the first things they discovered upon entering America was a sense of economic equality and lack of poverty, which are exactly the things Jackson was working towards (D). The case Charles River Bridge v. Warren Bridge decided that a charter given a person or group to do a service does not allow that group to have complete rights over this service. This decision supports the Jacksonian Democracy ideas that the rights of the community are more important than the rights of business (H).
Throughout the Jacksonian era the Jacksonians proved to be violators of the United States Constitution and not the guardians they believed themselves to be. Both the Jacksonians and President Jackson went against the Supreme Courts regarding cases that were said to be constitutional. In the Supreme Court case of Cherokee Nation v. Georgia, the Supreme Court ruled in favor of the Cherokee Nation. This ruling of the Supreme Court did not stop Jackson and the Jacksonians from driving the Cherokees off of their land, and by doing this the Constitution was violated. Also, when dealing with the south, Jackson and the Jacksonians were not guardians of the US Constitution. In vetoing the national bank, Jackson did so because he thought that the act that created it was not compatible with the constitution. However, the Supreme Court had already ruled that the bank was constitutional. In this act Jackson and the Jacksonians were not guarding the constitution, but they were utilizing it to suit their own needs. However sometimes the Judiciary and Executive branches agree such as the incident when South Carolina declared a reduced tariff void and threatened to secede, President Jackson responded in an unconstitutional manner. Jackson threatened to send militia to enforce the tariff implementation and the Jacksonian Congress passed a bill approving this military force, if necessary.
The bank would be more for the rich and the foreign, but have no benefits for the poor. Jackson’s political rival, Daniel Webster, believes that this letter from Jackson showed just how evil Jackson was. Webster does not think Jackson was vetoing for the good of the people, but to ‘stir the pot’. By Jackson sending this letter, it causes a stir between the rich and the poor. The poor would feel imbalanced against the poor, and arguments would rush out.
One of the Jacksonian Democrats’ attempts to reduce the influence of the rich was by vetoing the charter to the Bank of the United States. Jackson stated his reasons in Document B mainly as a precaution of...
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