Andrew Jackson

By: Evan Donahoe

The corrupt bankruptcy

On July 10, 1832, President Andrew Jackson vetoed a bill that would have renewed the corporate charter for the Second Bank of the United States. It was one of the most noticeable acts of his presidency.

The Second Bank of the United States was created in the aftermath of the War of 1812 and had been controversial still today. Many people blamed the Bank for the Panic of 1819, and Westerners and Southerners felt that the Bank in general, and its lending policies in particular, favored Northern interests over their own. Most bankers believed that the Bank of the United States had helped stabilize the national money supply and have overall banking and commercial environment during the 1820s, the Bank still had vociferous opponents, President Jackson foremost among them.

The renewed charter

At the end of 1831, Senators Henry Clay and Daniel Webster, supporters of the Bank, convinced the Bank's president, Nicholas Biddle, to submit an early petition for the renewal of the Bank's charter to Congress. Because they figured that Jackson would not dare issue a vote on the eve of the election. If he did, they would make an issue of it in the 1832 campaign.


The petition to recharter the Bank became an instant act of decision in the Congress. Jackson did himself despised the Bank of the United States and had been an outspoken opponent since before he became President, many supporters, especially from Eastern and Midwest states, supported the Bank. The recharter bill passed both houses of Congress.

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Challenged

Jackson quickly countered the charter pass. Jackson explained message, one of the most important state papers of his presidency. Attorney General Roger Taney and adviser Amos Kendall posed message, which emphasized a variety of reasons for the political, and some unconstitutional. Jackson's message labeled the Bank elitist and anti-republican. It argued that the Bank was unconstitutional and that it was neither “necessary” or “proper” for the federal government to permit the existence of an institution so big and so powerful that only directly benefited a privileged few. Jackson challenged the rulings of the Supreme Court of the United States, which had held consistently that the Bank was constitutional. The bank could give as many loans as they wanted because they could charge them any interest fee back. Which jackson thought of "overpowered".
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The economies' corrupt panic


The new chartered bank was formed to avoid inflation. the national bank would, be kept as a national stabilizer for currency values and capital markets stable, and prevent national economic expansion from turning into an inflation.

The Second Bank indeed was back alive from the war, national bank was not fortunate in its choice of directors who first inflated the currency and then had renewed the charter.


The second bank suddenly burst opened, with hundreds of banks shutting down, and thousands of depositors and investors job brokered. The land rush had seen the number of banks grow to more than 1,000, with each issuing its own colorful bank notes - normally in two- and five-dollar denominations, backed by no one knew what. Jackson made land sell for gold or silver. However the banks were running out of gold and silver so had to shutdown. Many people went homeless because of that.


Economic leadership or economic currency was very poor. In 1819, as the economic prices collapsed." Sellers said that it was hard for state banks to collect money from borrowers or meet issues to the national Bank. When most state banks had a flood of business failures and personal liquidations throughout Americans into their economic society of panic economic prostration.

My Reaction

I think that Jackson did not think out his decision. Because the economy seemed to be flowing smoothly. Until Jackson thought that the owners had to much power in their hands. Instead he should of put out an act similar to checks and balances. That way the state banks can carefully procced the amount of interest the banks charged. He basically curropted the economies' currency which caused banks to shutdown and homeless people. His actions were bad and were not planned out well.

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