Why did Andrew Jackson oppose the Bank of the United States?
Andrew Jackson’s disaffection with the powerful central bank and its "paper money" can be traced as far back as the First Bank of the US. Jackson lost everything during the time when the market expansion and the availability of western lands should have offered safe opportunities for economic improvement to more and more individuals. Jackson blamed the banking system for his personal financial misfortunes (all involving land speculation and worthless bank notes). With overwhelming support of the masses, Jackson was elected president in 1828 and given power to seek change. In 1829, he warned Congress in his first annual address that "both the constitution and the expediency of the law creating this are well questioned by a large portion of our fellow citizens." With this statement President Jackson declared war on the Second Bank of the United States. Show
SourcesHofstadter, Richard. The American Political Tradition. New York: Random House, Vintage Books Edition, 1989. Rockoff, Hugh, and Gary M. Walton. History of the American Economy. Ohio: Thomson South Western, 2005.
Objectives
Lesson ActivitiesActivity One: Setting the Stage for the Bank War—Cooperative ResearchThe rise and fall of a national bank in the United States took place at a particular time in our history. It is important to fully understand the context of both the creation and the demise of the institution.
Have each group share its research on the assigned topic with the class. The following sites will be helpful: The Market RevolutionBrief definition of the Market Revolution, Prentice Hall Biographical Information: Andrew JacksonBiography, The White House Andrew Jackson Quotations"The bold effort the present (central) bank had made to control the government . . . are but premonitions of the fate that await the American people should they be deluded into a perpetuation of this institution or the establishment of another like it." "Gentlemen, I have had men watching you for a long time and I am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country. When you won, you divided the profits amongst you, and when you lost, you charged it to the bank. You tell me that if I take the deposits from the bank and annul its charter, I shall ruin ten thousand families. That may be true, gentlemen, but that is your sin! Should I let you go on, you will ruin fifty thousand families, and that would be my sin! You are a den of vipers and thieves." Additional Quotes The First Bank of the United StatesBrief description of the First Bank of the US, USHistory.org The Panic of 1819A brief description of the Panic of 1819, U-S-History.com The Second Bank of the United StatesMcColloch v. Maryland, Oyez.org Effects of the Veto on the EconomyBrief description of the Panic of 1837, U-S-History.com Activity Two: Panel Discussion on the Second Bank of the United StatesSelect six panelists—three to speak in favor of the Bank and three to speak against it. Select a student moderator as well. The panelists will:
The moderator will:
ExtensionEssay: To what extent did Andrew Jackson’s veto of the Second Bank of the United States reflect the values and beliefs of the Jacksonian Democrats? What did Andrew Jackson think about the bank of the United States?President Andrew Jackson, like Thomas Jefferson before him, was highly suspicious of the Bank of the United States. He blamed the bank for the Panic of 1819 and for corrupting politics with too much money. After congress renewed the bank charter, Jackson vetoed the bill.
Was Andrew Jackson against the National Bank?In his 1830 and 1831 annual messages, Jackson reiterated his opposition to the Bank. He proposed in its stead a wholly government institution—in name a bank, but in effect an arm of the Treasury, without power to make loans, acquire property, or issue notes.
Why did Jacksonian Democrats dislike the bank of the United States?Answer and Explanation: Supporters of Andrew Jackson, known as Jacksonian Democrats, opposed the National Bank for the same reason as their leader: they were distrustful of a powerful federal government and often tended it view it as corrupt.
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