Andrew Jackson wanted and even gave everyone equal economic opportunity by lessening monopoly with his bank veto. However, the financial panic of 1837 was caused by two of his plans, these include pet banks and Specie Circular. People in favor of the national bank proposed a renewal bill for the Second National Bank's charter. Jackson was not necessarily opposed to central banking as much as he was to the idea of the Second National Bank. By opposing the bill, the Second Bank expired and the US would be without an official bank for many years. Jackson didn't do this out of purely selfish reasons, he wanted to stop a monopoly or lessen the chances of one. However, when he vetoed the renewal of the Bank of the United States he withdrew funds
Jackson thought that if charters were favored towards one area of society instead of another, then some people would view it as favoritism towards an elite society. Jackson believed that that was a direct violation of equal liberty of republicanism so he didn’t re-charter the Bank of the United States. The market revolution involved the creation of canals, roadways and railways, foreign investment, new technology, and industrialization. The fact that Jackson didn’t re-charter the Bank of the United States led to the Panics of 1837 and 1839, both of which occurred after he left office. Watson argued that Jackson was extremely self-confident.
Andrew Jackson didn’t want the bank to get rechartered so after the bank flew through Congress he vetoed it, Congress was unable to override Jackson’s veto. Then Jackson proceed to order his secretary of the treasury to move future government funds to state banks called pet banks. While that was happening the government would remove their funds from the United States bank till it was in a financial panic. Jackson held his ground while Congress censuring him that the removal of the United States bank was a misuse of his presidential power. The United States went into an uncontrolled inflation and Jackson issued the Specie Circular which declared the federal government would only accept hard money for purchasing public lands.
Andrew Jackson believed the banks to be corrupt which is the reason that he declared war on them. The First Bank’s charter ended in 1811, so with the War of 1812 and no bank, the country suffered financially and many people were in debt. That’s why in 1816, another bank was chartered and it became known as the Second Bank of the United States. Eventually, the bank grew and had supreme economic power with over 35 million dollars in capital. Most of the money was put into it by investors whereas some was put into it by the government that owned one-fifth of the bank.
Andrew Jackson took office in 1829, but had shortly after that had to deal with the Nullification Crisis. When he was dealing with these conflicts he became concerned about the economic problems. After the Nullification crisis was over he got many federal authority. Although he got this authority he was not comfortable with the other greater federal power, which was the Second Bank of the United States. He even stated that he wanted it to die “I will kill it”, he said making it very clear he wants it done.
Andrew Jackson was very against the growth of the new upcoming banking system in the
““I have always been afraid of the bank” “Mischief springs from the power which the moneyed interest derives from a paper currency which they are able to control, from the multitude of corporations with exclusive privileges... which are employed altogether for their benefit.” He advises the public to be cautious with paper money, the irony in it is yet another reason why he should not be on the twenty dollar bill. Andrew Jackson gained control over the bank after vetoing the renewal of the bank charter. He was able to seperate the money into state banks, draining the federal bank of all its money. The bank slowly died and the circulation of money increased inflation, causing the money to be worth less.
The South had many reasons to want to secede from the North. From the social point of view the South had many regional conflicts such as disputes between New Mexico and Texas, and war within Kansas. Within the political point of view there is the fact that the Whig party was formed in opposition to Andrew Jackson and the Democratic Party, as well as presidential turmoil such as the “corrupt bargain between John Quincy Adams, Henry Clay, and Andrew Jackson. Economic problems were also an issue with the South wanting to secede from the Union. Problems such as finance and banking, as well as expansion to the west.
He was against a national bank because he believed it directed the nations financial power into a single institution. Jackson also thought that the national bank did not benefit the interest of the common man and that it was mainly run by wealthy people. So basically Jackson chose not to continue the bank,he took money from the bank and put them in state banks. He also tried to decrease inlflation by encouraging to use only gold and silver to buy land but at the end did not benefit the national
In Jackson's Bank Veto Message, he states that his principal reason for his veto was that he wanted to prevent the existence of monopolies. This is a fine reasoning that also goes along with is political views. The objection to this is that he was warned on how it would be detrimental to the United States economy but still went through with it. It cannot be overlooked that he had to fire two different secretaries until he finally appointed a close friend to agree with him. This is an obvious abuse of power, seeing as he fired two people simply for telling him that his idea would not work.
Andrew Jackson was a great U.S President, he was seen as a hero for defeating the British in the New Orleans war, he went against the American system. Jackson was the first U.S President to run a campaign to encourage people to vote for him. He also gave more power to the presidency, like having the power to veto laws. Jackson also created the Democratic party in response against John Quincy Adams, a person who made an "corrupt bargain" with Henry Clay, and the spoils system. Andrew Jackson appealed to the working men because of the spoils system.
Within the same year, the Second National Bank had a crisis. Jackson had ordered the SNC to take $6 million to repay the remaining national debt (Profess Hall PowerPoint). Since the SNB did not follow what he said, he removed all the federal money out and placed it into several state banks. This showed all the people living in the United States that Jackson had a vision for the future and if you did not follow what was said, he would prove you wrong and take action into his own hands. Many people saw how he had the best intentions for the people.
Jackson 's push to abolish national banks other wise known as "the bank wars" was one of his more well known pushes for small government. In 1832, Jackson had vetoed a bill calling for an early renewal of the Second Bank’s charter, but renewal was still possible when the charter expired
From what I read and what he said, I thought it sounded like he didn’t want to shut down the United States Bank. And then in Document 5, Webster acted like Jackson should put an end to the bank by saying, “It manifestly seeks to inflame the poor against the rich, it wantonly attacks whole classes of the people, for the purposes of turning against them the prejudices and resentment of the other classes.”
In this veto letter against the new bank, he states,”It is regretted that the rich and powerful too often bent the acts of government their selfish purposes” (Jackson, 1832). This proves Jackson’s worries for the national money because of what the private corporations would do to with bank’s money. This was because they owned more than the majority of the bank. He also shows that he is worried about the national money. As stated before he said that the rich and powerful which are the corporations often bend the rules to benefit only themselves but not to the nation.
This caused the new banks’ failure by issuing the Specie Circular order in 1836. The government land required payment to be in gold. The National Banks of United States collapsed, this caused what we know as the Panic of 1837, that Andrew Jackson’s successor had to deal with. This was much unorganized, banks got removed, etc. The lack of national banks was one of the many speculations that contributed policies that caused the market to crash in the year of 1837.