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Andrew Jackson
The Bank War
Read the brief explanation of the bank
War and answer the question below.
1. Based on the quote, what can you
infer about Jackson’s attitude toward the
BUS?
 2. What are Jackson's stated reasons to
oppose rechartering of the BUS?
 3. Dig Deeper and Read between the
lines: What is his real reason to oppose
the BUS?

The Antagonists:
Nicholas Biddle and Andrew Jackson
Biddle and Clay
1. The Bank of the United States
Under Private Control, but Chartered by
the Federal Government.
 Storehouse for public funds and didn’t
pay interest
 Didn’t pay state taxes
 Could issue bank notes

What the BUS did….
Bank paid the Federal Government a
bonus of 1.5 Million Dollars
 Payments made and government money
transferred without charge
 Government appointed 5 of the 25
directors What is significant about this
information?

5. Killing the Bank
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Following the election,
Jackson moves federal
funds into “pet banks”
State Banks friendly to
Jackson
Jackson fires two
Treasurers before one
does his bidding, Roger
B. Taney.
2. Why Jackson Hates the BUS
Jackson thought the Bank’s branches
advocated the election of John Quincy
Adams in 1828
 Jackson felt the Bank held too much
power
 Jackson viewed the BUS as
unconstitutional

Continued Opposition
Jackson thought the Bank benefited rich
investors, many foreign
 Jackson felt a privileged few should not
control the nation’s money
 Jackson viewed the battle as the
common man versus the aristocracy

3. Biddle Moves to Recharter
In an election year, 1832, Biddle applied
for recharter of the bank 4 years early.
 Urged by Clay and Webster
 The election 1832 becomes a
referendum on the Bank
 "The Bank is trying to kill me, Sir, but I
shall kill it!" Jackson to his VP Van Buren

Henry Clay has ulterior motives
Clay sees the Bank as way to defeat
Jackson for President
 Renew the BUS Jackson loses votes in
South and West
 Veto the Bank Bill loses votes in North
 Jackson easily wins re-election

4. Jackson’s Veto Message
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It concentrated the nation's financial strength
in a single institution.
It exposed the government to control by
foreign interests.
It served mainly to make the rich richer.
It exercised too much control over members of
Congress.
It favored northeastern states over southern
and western states.
Impact of Bank Veto
State Banks issue paper money beyond
their ability to back it up with gold
reserves
 State banks in West and South ease
loan requirements and many borrow to
speculate in land
 Economic downturn in England
 Price of Cotton drops 25%

Continued
Transfers of federal money away from
eastern banks meant they had less
money to lend.
 Banks raise interest rates
 Long term, economy falters.
 Land prices increase, but so does
everything else.

Species Circular: Issued by
Jackson
Treasury could only accept gold or silver
for land purchases
 All of it taken together leads to Panic of
1837 and Van Buren gets the blame.

Jackson’s Use of the Veto
1st 6 Presidents vetoed 10 Bills.
 Jackson vetoed 12
 7/12 vetoes were pocket vetoes:
Congress adjourned so could not
override.
 1st president to veto bills for political
reasons.

Everyone Loses

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Few had hard currency to buy land
Prices fall
Banks fail
Economic Crisis in England made the problem
worse
Panic of 1837: hunger, unemployment, riots.
BUS went out of business when its charter ran
out
Jackson is Censured
The U.S. Senate censured Jackson on
March 28, 1834, for his action in
removing U.S. funds from the Bank of
the United States.
 When the Jacksonians had a majority in
the Senate, the censure was expunged.
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