Download Jackson and the Bank Speech “Frame”

Jackson vs. The Bank
Background:
Alexander Hamilton, the first secretary of the treasury, proposed that Congress charter a
national bank which would have branches around the country. Such a bank, he argued, could
assist the federal government by providing a safe place to deposit money and other revenue,
allowing the government to make payments throughout the country, and to market
government bonds. Hamilton also believed the bank could play a central role in the economy
by printing paper money which could serve as currency, encouraging trade among the various
regions of the nation, and making loans to fledgling industries. In 1791, in response to
Hamilton’s recommendation, Congress chartered the Bank of the United States, later known as
the First Bank of the United States.
Thomas Jefferson and members of his Democratic-Republican party opposed the Bank for
numerous reasons, including a suspicion that it was unconstitutional. The DemocraticRepublicans interpreted the Constitution strictly, arguing that the federal government only had
the powers specifically granted to it in the Constitution. Since the Constitution did not
specifically state that Congress can charter a bank, the Democratic-Republicans considered the
Bank unconstitutional. In 1811, when the Bank’s charter was about to expire, the DemocraticRepublicans controlled both Congress and the presidency. They decided to allow the Bank’s
charter to elapse, and the Bank went out of business.
The very next year, the nation was at war with Britain in the War of 1812. The U.S. government
had a hard time selling war bonds and paying military suppliers and soldiers in an orderly
fashion. By the end of the war, President James Madison had concluded that a national bank
might not be such a bad thing after all. At his urging, Congress in 1816 chartered another Bank
of the United States, commonly called the Second Bank of the United States. In the case of
McCullouch v. Maryland, the Supreme Court in 1819 affirmed the Bank’s constitutionality;
Congress, proclaimed the Court, did indeed have the authority to charter a national bank, even
though it was not explicitly given that power in the Constitution.
That same year, the country’s economic troubles led to the depression known as the Panic of
1819. Historians mostly agree that the Second Bank did not play a major role in causing the
crisis, but many people at the time blamed the Bank. During the Panic, the Bank required
debtors to pay off loans immediately to keep from running out of money, and the financial
hardship it caused led many to resent the Bank.
Among those who bitterly hated the Bank was Andrew Jackson. He considered it the very
embodiment of elite privilege and power. And Jackson was by no means the Bank's only enemy.
Those who opposed the bank came from two groups--those favoring "soft money" and those
favoring "hard money." The "soft money" advocates disliked the Bank, because it informally
regulated the state banks by tightly controlling the money supply, which limited financial
opportunity. People in the West, who needed loans for new farms and businesses, particularly
resented the Second Bank for this practice, as did investors and other supporters of state
banks.
"Hard money" advocates also criticized the Second Bank but for a different reason. They
believed that specie--gold and silver coins--was the only safe currency. They thought that no
bank, regardless of how well run it might be, should be able to issue bank notes. This was
Jackson's position. He had once speculated in a land deal with paper credit, and his business
had been ruined. The experience left him suspicious of all banks.
In 1823, as the economy rebounded from the Panic, Nicholas Biddle, an aristocratic
Philadelphian, became president of the Second Bank of the United States. He won wide
recognition as an excellent and responsible leader of the Bank which was, by far, the nation's
most important financial institution. At first, Biddle tried to stay out of politics. However, when
he saw popular opposition to the Second Bank rising during Jackson's first term as president of
the United States, he decided to become active politically to defend the Bank against opponent.
In particular, he formed an alliance with two powerful senators, Henry Clay and Daniel
Webster. Clay and Webster were nationalists who strongly supported the national bank and
believed the federal government should be very active in economic matters, even if the
Constitution did not specifically grant it that power.
With encouragement from Clay and Webster, Biddle applied for a renewal of the Bank's charter
in 1832, although the original charter was not going to expire until 1836. The three men
believed the institution enjoyed public support. Since Jackson was running for re-election as
president, they reasoned, he might not want to make the Bank an issue and thus would sign the
renewal. On the other hand, if Jackson chose to veto it, he would lose support in key states
such as Pennsylvania, where the Bank had its headquarters. That would benefit his opponent
who happened to be Henry Clay.
Clay, Webster, and Biddle badly misjudged Jackson's reaction. When word got out that
Congress was considering re-chartering the Bank, Attorney General Roger B. Taney laid out the
situation as he saw it: "Now, as I understand the application at the present time, it means in
plain English this--the Bank says to the President, your next election is at hand--if you charter
us, well--if not, beware of your power." To Jackson, it sounded like a threat to his presidency
and a challenge to his integrity. It was bad enough that the Bank had so much economic
influence in the country, but now Biddle was trying to manipulate the presidency for the Bank's
benefit. The Bank, said Jackson, was an "undemocratic, hydra monster" that was out of control.
As the people's president, Jackson believed he had the responsibility to destroy it. After
Congress passed a bill re-chartering the Bank, Jackson exercised his power as president and
vetoed it.
Part One:
Create a timeline for the Bank of the United States that begins in 1791 and ends in 1832.
Include the following events and answering the questions:
a.
b.
c.
d.
e.
f.
The creation of the Bank—who supported it and who opposed it?
The expiration of the first bank’s charter—why was it allowed to expire?
The creation of the Second Bank—why was a new Bank created?
McCullough v. Maryland—what did this case say about the Bank
The Panic of 1819—what role did the Bank play in this
Nicholas Biddle becomes president of the bank—how did Biddle work to
strengthen the Bank?
g. The bill to renew the Bank’s charter and Jackson’s veto—who supported and
opposed the Bank? Why did Jackson veto it?
Part Two:
In groups, you will be given a role. Read through the role and decide whether, in that role, you
would support or oppose the renewal of the Bank’s charter. Use the “Speech frame” to
construct a speech that you could give in this role to convince others to support or not support
the renewal of the Second Bank’s charter. Each group will send a representative to give the
group’s speech.
Part Three:
Once the speeches have been given, students will then vote on whether to renew the charter of
the Second Bank of the United States
Western Land Speculator
The Second Bank of the United States was created in 1816 in order to help the government regulate the
economy of the United States in the wake of the War of 1812. After the war, and despite its debt, the
United States experienced an economic boom due to the devastation of the Napoleonic Wars. In
particular, because of the damage to Europe's agricultural sector, the U.S. agricultural sector underwent
great expansion. The bank aided this boom through its lending, which encouraged speculation in land.
This lending allowed almost anyone to borrow money and speculate in land, sometimes doubling or
even tripling the prices of land. The land sales for 1819 alone totaled some 55 million acres. The Bank
offers loans at low interest rates. As a speculator in land, you hope to buy land at a low price and sell it
at a high price. The Bank will lend you money at low interest rates, allowing you to buy up more land to
sell. You can buy land using paper money, rather than gold and silver, making it cheaper for you to
purchase.
Western Small Farmer
You are a small farmer in the western part of the country, who makes a living growing crops for your
family. You will not be selling in wider markets. However, you frequently find yourself in need of a
little bit of money, and state banks have been good at providing you with that. The national bank,
though, does not seem willing to lend you money. Its terms for credit make it difficult for you to obtain
the loans you can get from a state bank. On the other hand, the Bank is perfectly willing to lend to other
groups of people (for example, northern industrialists and merchants). And, if you can get a loan, the
terms are often not favorable to you. Your state banks, on the other hand, know you and can serve you
well, making sure you can get access to you need, even if the interest rates are higher, and it’s hard to
make loan payments in gold and silver, because we mostly have paper money. The election of Andrew
Jackson made you feel like one of your people was in the White House
Northern Factory Worker
You are a worker in one of the new factories that have been spreading across the North. You might
have been born in the city, or you might have become a farmer, but you know one thing for sure—you
don’t like the way you are treated by factory owners and other elites. You work long hours for low
wages and have almost no job security. Factory owners, on the other hand, have all the money and all
the power. Whenever you try to organize your fellow workers to demand changes, and try to get higher
wages, the bosses send in their thugs to break things up and the government, at least under President
Adams and his pals in office across the country. In 1828, you were able to vote for the first time and you
checked the box beside Andrew Jackson’s name. “Old Hickory” is no fan of the wealthy and their
interests and he doesn’t like the Bank either. And why would he? The Bank is the one lending money to
the factory owners who make your lives miserable.
Northern Businessman
What a great time to be in business! The protective tariffs that have recently been enacted have made
business in manufacturing profitable like they’ve never been before. Finally, your products can be
competitively priced with those of Great Britain, and your sales are booming. You are expanding your
manufacturing capacity and hiring new employees constantly. None of this would be possible without
the Bank. The Bank makes money available to you at low interest rates, which allows you to do all this
while remaining competitive. It provides a stable national currency so you can sell your goods anywhere
in the country and know that a dollar is a dollar is a dollar. Who cares if a few farmers out West are
having a hard time? This is a country of commerce now! God bless the Second Bank of the United
States!
Southern Plantation Owner
You feel like President Jackson truly gets you. He’s a plantation owner just like you and now he’s in the
White House. The presidency of John Adams is a fading memory, a small sore spot between President
Monroe and this new, brighter day. You’re not really happy with the new tariff, since the British have
slapped tariffs in retaliation on good YOU make, and that’s a fight worth having. But now Jackson wants
to get rid of the Bank of the United States. Good for him! Ever since Hamilton instituted the first Bank
it’s been all about those northern manufacturers. They can get money, but it’s hard for plantation
owners to get it. You operate on credit from the people you do business with; cash hardly ever passes
through your hands at all. And, when you do have cash, it’s usually paper money, not the gold and silver
specie the Bank demands for payments. Your way, of exchange and credit, is far more civilized. Let the
Bank die!
Investor in a State Bank
The Bank of the United States is killing your business! You invest in a state bank, one that’s close to the
people…unlike the big Bank in Philadelphia. Your bank understands the needs of the people it serves.
True, you make your money because the state bank charges higher interest rates than the National
Bank, but that only serves to make money available to more people. And, yes, your bank prints
banknotes (currency) in excess of its gold and silver reserves, but that only helps stimulate the economy
by putting more money in the hands of more people! Plus, if the national Bank is re-chartered it will
compete with your bank, and you have a lot riding on that state bank since you’re an investor. Jackson
has it right! Down with the Bank!
National Merchant
These are the good times for you. As a merchant selling goods throughout the growing nation, you are
seeing record profits. Factories are producing goods more quickly and more cheaply than ever before,
and they are expanding thanks to loans from the National Bank. Because of the American System (of
which the Bank is a part), there are more and better transportation networks to expand the reach of
your salesman. These were able to be financed because of government deposits at the Bank. Plus, the
Bank provides a stable national currency and branches everywhere. Deposits in Georgia can be
withdrawn in Massachusetts, and you KNOW the value will be the same. Kill the bank? More like killing
your business!
Andrew Jackson
You are the President of the United States. Born in the back woods of North or South Carolina, you
made your way to Tennessee and made your fortune there. But you never forgot your humble
beginnings and when you ran for president, you ran as one of the common people against the elites in
Washington and the East Coast. You hate the Bank. They create money, which is worthless, and they
thrive when the people YOU represent go into debt, allowing the rich to prey on the poor. You were
almost ruined in a land speculation deal that was tangled up in the Bank. Plus, the Bank is flat-out
unconstitutional! Congress has decided to renew the Bank’s charter. Not on your watch! Though it
may cost you the election, you have decided to veto the Bank renewal.
Daniel Webster
You are the Senator from Massachusetts and you are NOT going to let the Bank go down without a fight.
You trust the moneyed elite to manage their finances, and those of the country, well. Ever since the
new Bank was chartered, America has seen unparalleled prosperity. There have been ups and downs,
but the gains have far exceeded the losses. Manufactures are expanding, and the protective tariff has
made American products more profitable than ever. Soon the country will be a world leader in trade!
All of this was made possible by the Bank. It attracts foreign capital into the country, investments that
lead to prosperity. Our economic growth is tied to the loans the Bank makes, and the stable currency it
prints. Furthermore, it IS constitutional, as it is “necessary and proper” to Congress managing its
financial burdens. The individual opinion of one man, no matter how powerful, should not override the
will of the people and the Congress they elected.
Jackson and the Bank Speech “Frame”
My fellow Americans: I speak to you today on behalf of the
_____________________________ (insert group) concerning the second Bank of
the United States. I wish to offer my _____________________ (support or
opposition) to this new Bank, which I think is
__________________________________ (good or bad) for the United States of
America. Our main point about the bank is that it ________________________
__________________________________________ (most important thing about
the Bank) and how it ____________________ (helps or hurts) members of the
_______________________________________ (insert group). In addition, the
Bank is _______________________________ (good or bad) because of
__________________________________________________ (insert second
reason). For these reasons, I stand with _________________________________
(President Jackson or Senator Webster)
*Join your candidate at the front of the room
Jackson and the Bank Speech “Frame”
My fellow Americans: I speak to you today on behalf of the
________________________________ (insert group) concerning the second Bank
of the United States. I wish to offer my _____________________ (support or
opposition) to this new Bank, which I think is
__________________________________ (good or bad) for the United States of
America. Our main point about the bank is that it ________________________
__________________________________________ (most important thing about
the Bank) and how it ____________________ (helps or hurts) members of the
_______________________________________ (insert group). In addition, the
Bank is _______________________________ (good or bad) because of
__________________________________________________ (insert second
reason). For these reasons, I stand with _________________________________
(President Jackson or Senator Webster)
*Join your candidate at the front of the room
Jackson and Webster Speeches
My fellow Americans, I am ______________________________ (Andrew Jackson
or Daniel Webster) and I _____________________ (support or oppose) the Bank
of the United States having its charter renewed. I think the Bank is
_______________________ (good or bad) for the American people because
____________________________________________________ ________ (reason
why the Bank is good or bad). In addition, the Bank is ______________ (good or
bad) because _________________________________________ (reason why the
Bank is good or bad). So, my fellow Americans, stand with me, _______________
___________ (Andrew Jackson or Daniel Webster) as I _______________
(support or veto) the Bank of the United States!
*President Jackson: when your supporters join you, give them high fives and fist bumps.
* Senator Webster: when your supporters arrive, give them a good, businesslike handshake
Jackson and Webster Speeches
My fellow Americans, I am ______________________________ (Andrew Jackson
or Daniel Webster) and I _____________________ (support or oppose) the Bank
of the United States having its charter renewed. I think the Bank is
_______________________ (good or bad) for the American people because
____________________________________________________ ________ (reason
why the Bank is good or bad). In addition, the Bank is ______________ (good or
bad) because _________________________________________ (reason why the
Bank is good or bad). So, my fellow Americans, stand with me, _______________
___________ (Andrew Jackson or Daniel Webster) as I _______________
(support or veto) the Bank of the United States!
*President Jackson: when your supporters join you, give them high fives and fist bumps.
* Senator Webster: when your supporters arrive, give them a good, businesslike handshake