Andrew Jackson's Battle Against the Bank of the United States

Background

• Second Bank of the United States
  • Chartered by Congress in 1816
  • Stockholders were elite Northeasterners
  • President of the bank: Nicholas Biddle, a Philadelphia aristocrat
  • Private institution, held federal deposits, paid dividends to the government, and made profits for stockholders

Andrew Jackson's Opposition

• Jackson, from a poor background, opposed the Bank as it was seen as benefiting the wealthy elite.
• Vowed to dismantle the Bank.

Jackson's Actions

• Veto of Bank's Charter Renewal (1832)
  • Declared unconstitutional, subversive of state rights, and a threat to people's liberties
  • Used the issue as a major point in his re-election campaign
  • Successfully re-elected, signaling popular support

Dismantling the Bank

• Jackson removed federal deposits from the Bank.
• Deposits were placed in smaller local banks ("pet banks") that Jackson personally selected.
  • Led to a political and administrative struggle:
    • First Secretary of the Treasury refused, reassigned.
    • Second Secretary, William Dewayne, also refused, was fired.
    • Third Secretary, Roger Tawny, complied and later became Chief Justice of the Supreme Court.

Political Repercussions

• Formation of new opposition party, the Whigs, due to perceived expansion of presidential power by Jackson.
• Results:
  • Death of the Bank of the United States
  • Shift from centralized monetary control to less federal oversight and more private business influence

Conclusion

• Jackson's actions against the Bank were controversial but marked a significant shift in U.S. economic policy towards laissez-faire principles.