By the finish of this section, friend will:Explain the causes and effects of continuing policy debates about the duty of the federal government from 1800 to 1848

Suggested Sequencing

This Decision point can it is in assigned together the Andrew Jackson, bank Veto Message, 1832 Primary source to further highlight the dispute surrounding the national Bank.

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The fate that the U.S. Economy weighed greatly on president Andrew Jackson’s psychic in 1832 together he disputed signing the rejuvenation of the charter the the Second bank of the joined States. Congress had granted the national financial institution a new charter for 20 years starting in 1816, but bank advocates tried to renew the charter early to pressure its passage through Congress during an choice year. The stage was set for a showdown in between Jackson and 2nd National financial institution president Nicholas Biddle.

Jackson had actually to sweet whether to kill the national bank because the his constitutional opposition come it and also his fear that the bank was an engine that aristocracy. He additionally had to decide exactly how he was going to challenge the criterion of that constitutionality as made decision by ahead congresses and presidents, and also the supreme Court.

Biddle had to decide how to react to Jackson’s opposition to the nationwide bank. He believed the constitutional questions were worked out and that the bank had great utility because that the expansion of the American economy. Biddle had actually to job-related with allies in conference to devise the ideal strategy to combine their very own hand countering Jackson’s opposition. The resulting clash was among the most significant battlegrounds of the mid-nineteenth-century politics.

Consistency and also continuity store financial sectors stable and predictable for everyone involved. Uncertainty and also instability are constantly bad for business. Safeguarding the future of the financial institution was for this reason a high priority for merchants and bankers who relied top top the country’s gaue won markets. Yet farmers worried the the financial institution worked in opposition come the nation’s democratic principles. Its opponents defined it together a “many headed monster” and also argued the the bank was actively creating one aristocracy that undermined the interests of simple people..


Nicholas Biddle, the third and critical president the the second Bank of the unified States, came to be President Andrew Jackson’s nemesis during the “Bank War.”

During the election campaign of 1832, Jackson’s enemies organized a new political party, the national Republicans, under Henry Clay. Clay believed that forcing Jackson to take it a stand on the national financial institution would threaten to embarrass the president and guarantee his very own election. The bank of the United claims was a central component of the American system Clay supported, which proposed utilizing a strong main bank and also high tariffs to money a substantial system that internal development projects such together railroads and canals. Biddle travelled to Washington, DC, to lobby members of congress to assistance the bank’s recharter. In spite of the ideal efforts the the Jacksonian adversaries of the bank, congress passed the recharter bill v a solid majority in both houses.

Jackson quickly vetoed the bill and defended his decision on constitutional principles, saying the constitution does not specifically grant Congress the power to develop a nationwide bank. The president additionally questioned the can be fried Court’s decision in McCulloch v. Maryland, arguing that the Court must not offer as the exclusive government or last arbiter that the Constitution. Instead, Jackson insisted the each branch had actually the ability to decide for itself even if it is a proposed measure up was constitutional. Jackson likewise attacked the undemocratic character of the bank. Conference had noted it v exclusive privileges, he pointed out, and also granted the a syndicate that insulated that from competition with state banks. Furthermore, foreign nationals owned much more than one-fifth that the bank’s stock. In closing, Jackson emphasized that the “rich and powerful too regularly bend the plot of federal government to their selfish purposes.” The affluent Americans stand to benefit from the bank’s recharter, he argued, no farmers, mechanics, and laborers.

With no opportunity of overriding the president’s veto in Congress, Biddle maneuvered the bank’s resources versus Jackson. He referred to as in loans, making that more difficult for banks and businesses to borrow money. If americans felt the loss of the financial institution of the United says directly, the reasoned, they would certainly turn versus Jackson and also support recharter. Unfortunately for Biddle, however, he had actually overplayed his hand, and also the bank’s efforts alienated those who could have been most inclined to protect it. Organization leaders and also Congress turned versus him.

As the so-called bank War escalated, Jackson recommended relocating the commonwealth government’s deposits the end of the bank 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 mom Bank, applauds Jackson’s order for the removal of commonwealth funds indigenous the financial institution of the unified States. Jackson holds up an “Order because that the remove of the general public Money.” Nicholas Biddle (depicted through devil’s horns) and also his supporters scatter as the bank building falls roughly them.

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

Review Questions

1. Andrew Jackson justified vetoing the invoice to recharter the financial institution of the United says for every the adhering to reasons except

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

2. Which of the complying with presents the events of the “Bank Wars” in the exactly chronological order indigenous earliest to many recent?

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

3. Throughout the bank War, Nicholas Biddle was

a prominent member of Congress who wanted to reveal Andrew Jackson’s antagonism towards the bank of the joined Statesa political ally of Andrew Jackson’s who wanted to close the financial institution of the unified Statesthe president of the bank of the unified States, that wanted the charter renewedAndrew Jackson’s secretary of the Treasury who transferred money indigenous the financial institution of the United says to Jackson’s pets banks

4. The panic of 1819 was a turning point in U.S. Economic history because

it guaranteed the choice of Andrew Jackson as presidentit brought about the decision in McCulloch v. Maryland, stating the bank of the United says was constitutionalit prove to “hard currency” supporters that just gold- and also silver-backed money would maintain a viable economy, giving credence come Jackson’s beliefs about the national bank in the 1830sit resulted in the nomination of Henry Clay, who, as president, would have guaranteed the extension of the financial institution of the unified States

5. Regardless of being a member that the Republican Party, which of the complying with presidents signed the renewal charter that the financial institution of the United claims in 1816?

Thomas JeffersonJames MadisonJames MonroeJohn Quincy Adams

6. Opponents of the financial institution of the United states argued against it for every the adhering to reasons except

the financial institution favored eastern business intereststhe financial institution catered to the elitethe financial institution had to be granted a monopoly over state banksfarmers were guaranteed crucial loans indigenous the Bank

7. The destruction of the financial institution of the United says led to

the election of Martin van Buren as presidentthe development of the national Republicans as a brand-new political partythe finish of central banking in the United states until the creation of the commonwealth Reservethe prompt rechartering of the bank of the united States

Free solution Questions

Explain Andrew Jackson’s decision to veto the 2nd Bank that the joined States.Explain why the Jacksonians opposed the 2nd Bank that the united States in spite of congressional initiatives to do the institution an ext democratic.

AP practice Questions

EXCERPT 1 “The existing corporate body, denominated the president, directors, and agency of the bank of the joined States, will have existed at the moment this act is intended come take result twenty years. That enjoys an exclude, privilege of bank under the authority of the general Government, a syndicate of that favor and support, and, together a necessary consequence, virtually a syndicate of the foreign and also domestic exchange. The powers, privileges, and also favors bestowed upon the in the original charter, by increasing the value of the stock far over its par value, operated as a gratuity of plenty of millions come the stockholders. . . . That is not our own citizens just who space to receive the bounty of ours Government. More than eight numerous the share of this financial institution are hosted by foreigners. Through this action the American Republic proposes basically to make them a current of some countless dollars.”

Andrew Jackson, bank Veto Message, July 10, 1832

EXCERPT 2 “The veto is an particularly power, which, though tolerated by the Constitution, was not expected, by the convention, come be used in simple cases. It was designed because that instances the precipitate legislation, in unguarded moments. For this reason restricted, and also it has been thus limited by all previous presidents, it might not it is in mischievous. During Mr. Madison’s administration of eight years, there arisen but two or three situations of that exercise. During the last administration, I perform not now recollect the it to be once. In a period little increase of 3 years, the present chief magistrate has employed the veto 4 times. We currently hear rather frequently, in the progress of actions through Congress, the statement the the president will veto them, urged together an objection to your passage.”

Henry Clay, decided to the U.S. Senate on president Jackson’s veto that the rechartering of the bank of the united States, July 10, 1832

Refer come the excerpts provided.

1. A significant difference in between Andrew Jackson and Henry Clay in their arguments concerning the bank of the United claims concerned

the fact that the bank dealt only with the elitethe constitutionality the the bankClay’s id that the veto need to be offered liberallythe extent of the president’s strength over the bank

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

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

3. Which of the following ideal describes the an ideas for the event explained in the excerpts?

A disagreement end the suitable interpretation and also use the the president’s veto powerThe failure of the farming industry, due to the absence of obtainable fundingClay’s desire because that a political victory to enhance Jackson’s to win of the Nullification CrisisLingering animosity in between Clay and Jackson end the “Corrupt Bargain” in the choice of 1824

Primary Sources

Jackson, Andrew. “Veto Message” in Jackson vs. Biddle’s Bank: The battle Over the second 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 also Politics in America indigenous the revolution to the civil War. Princeton, NJ: Princeton university Press, 1957.

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

Lamoreaux, Naomi. Insider Lending: Banks, personal Connections, and also Economic advance in Industrial brand-new England. Cambridge, UK: Cambridge university Press, 1996.

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

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

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Taylor, George Rogers ed. Jackson vs. Biddle’s Bank: The battle Over the 2nd Bank the the unified States. Second ed. Lexington, MA: D.C. Heath and Company, 1972.