president jackson tended to oppose power exercised by the elites of what region?

Written by: Frank W. Garmon Jr., Christopher Newport University

By the finish of this department, you will:

• Explain the causes and effects of continuing policy debates virtually the role of the federal government from 1800 to 1848

Suggested Sequencing

This Decision Point tin can exist assigned aslope the Andrew Jackson, Bank Veto Message, 1832 Master Source to further highlight the contend surrounding the National Bank.

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The fate of the U.S. economy weighed heavily on President Andrew Jackson's mind in 1832 every bit he debated signing the renewal of the charter of the Second Banking company of the U.s.a.. Congress had granted the national bank a new charter for twenty years starting in 1816, just depository financial institution advocates tried to renew the charter early to force its passage through Congress during an election year. The stage was gear up for a showdown between Jackson and Second National Bank president Nicholas Biddle.

Jackson had to weigh whether to kill the national bank considering of his constitutional opposition to it and his fright that the depository financial institution was an engine of elite. He also had to make up one's mind how he was going to challenge the precedent of its constitutionality as decided past previous congresses and presidents, and the Supreme Courtroom.

Biddle had to decide how to react to Jackson'southward opposition to the national bank. He believed the constitutional questions were settled and that the banking company had great utility for the expansion of the American economic system. Biddle had to work with allies in Congress to devise the best strategy to strengthen their own hand countering Jackson's opposition. The resulting clash was one of the most meaning battlegrounds of the mid-nineteenth-century politics.

Consistency and continuity keep financial markets stable and anticipated for everyone involved. Doubt and instability are always bad for business organisation. Safeguarding the time to come of the bank was thus a loftier priority for merchants and bankers who relied on the country'southward fiscal markets. But farmers worried that the bank worked in opposition to the nation's democratic principles. Its opponents described information technology as a "many headed monster" and argued that the bank was actively creating an aristocracy that undermined the interests of ordinary people..

This 1836 political cartoon depicts Andrew Jackson in his battle against the "monstrous" national depository financial institution. The president is holding a cane marked "veto."

The national banking company had been one of the cornerstones of Alexander Hamilton's economical reforms when he was secretary of the Treasury during the Washington administration. The Bank of the United states of america could loan money to the federal government in times of war and encourage economic development by providing American businesses with access to capital they could invest in their firms. The get-go Banking concern'southward charter expired presently earlier the War of 1812; however, the state of war demonstrated the need to maintain a central depository financial institution that could finance a conflict by making loans and bond issues rather than past raising taxes. In 1816, President James Madison overcame his earlier constitutional qualms and signed the bank beak into constabulary. The 2nd Bank of the The states was even larger than the kickoff and became one of the largest corporations in the globe. But whereas Hamilton had designed a bank on Federalist principles, proponents of the Second Bank sought to give the establishment a republican character. The new banking concern was centered in Philadelphia, had branches in every major city, and issued new stock at a lower price to allow everyday Americans to invest.

Early banks were not equally sophisticated every bit their modern successors. To set them upward, wealthy individuals banded together to provide credit and loan coin to start-up businesses and merchants. Bankers preferred to loan coin to merchants rather than farmers, considering merchants could repay short-term loans quickly subsequently selling their goods at marketplace. Because in that location were no credit reports, personal connections were most important in determining an individual's creditworthiness, and early on bankers loaned money to family unit members and friends. The close-knit relationships these establishments fostered led many Americans to view banks as aristocracy institutions. Farmers in the nineteenth century were especially disquisitional of them. Although they did not reject capitalism or oppose banks on principle, they worried that concentrated fiscal ability would lead to concentrated political ability, and many believed the banking sector did little to do good farmers.

Rival banks did not appreciate competition from the operating branches of the Second Bank of the Usa. Several state legislatures responded past imposing taxes on the federal banking company's operations. In 1819, the Supreme Court ultimately struck down a tax in Maryland equally unconstitutional inMcCulloch five. Maryland. Chief Justice John Marshall emphasized in his opinion that "the power to tax involves the ability to destroy." The case cemented the supremacy of the federal government past ensuring that states could not tax federal institutions. More importantly, the court's ruling established the doctrine of implied powers by declaring the national depository financial institution to be constitutional. When the Supreme Court issued its ruling, state bankers complained that the federal government had encroached unfairly on their industry by granting tax exemption to their competitor. Although the outcry over the Court'south determination apace subsided, a financial panic that developed later that year intensified farmers' opposition to the banking system and resulted in bank and business failures.

The financial panic of 1819 hurt many farmers, artisans, and other small businesses, which fueled resentment against the banking concern and its newspaper currency when a Congressional inquiry revealed that the institution, in fact, had acted irresponsibly during the crisis. The Panic provided a critical turning point for Andrew Jackson and other "hard coin" advocates, who insisted that paper currency could never replace coin backed past gold and silver.

The Banking company of the Usa soon recovered its sound financial footing under the leadership of Nicholas Biddle. Over the course of his fourteen-year tenure, Biddle managed the banking company expertly. He worked to provide some permanence to the establishment, given that its charter was set to expire in 1836, by communicating with Andrew Jackson and members of his administration beginning almost immediately later on Jackson's election equally president in 1828. Biddle had advisedly surveyed the political state of affairs in Congress and realized that plenty votes existed for recharter but not enough to override a veto if the president opposed the mensurate. Unfortunately for Biddle, withal, Jackson indicated that "both the constitutionality and the expediency of the police creating this Banking concern are well questioned." Biddle felt he had little choice but to press for the bank's recharter during an election year because it was a relatively popular institution that Jackson would not dare impale with a veto or he would confront voters' wrath.

Nicholas Biddle, the third and last president of the Second Bank of the United States, became President Andrew Jackson's nemesis during the "Banking concern State of war."

During the election campaign of 1832, Jackson'south opponents organized a new political party, the National Republicans, under Henry Dirt. Clay believed that forcing Jackson to have a stand up on the national bank would threaten to embarrass the president and guarantee his ain election. The Banking concern of the U.s.a. was a central component of the American Organization Clay supported, which proposed using a strong central depository financial institution and high tariffs to fund a comprehensive organization of internal improvement projects such as railroads and canals. Biddle travelled to Washington, DC, to antechamber members of Congress to support the bank'south recharter. Despite the best efforts of the Jacksonian opponents of the bank, Congress passed the recharter bill with a solid majority in both houses.

Jackson quickly vetoed the bill and dedicated his conclusion on constitutional principles, saying the Constitution does non specifically grant Congress the power to create a national bank. The president also questioned the Supreme Court's decision inMcCulloch v. Maryland, arguing that the Court should not serve as the exclusive authority or final czar of the Constitution. Instead, Jackson insisted that each branch had the ability to decide for itself whether a proposed measure out was constitutional. Jackson also attacked the undemocratic character of the bank. Congress had provided it with exclusive privileges, he pointed out, and granted it a monopoly that insulated it from contest with state banks. Furthermore, foreign nationals owned more than i-fifth of the banking concern's stock. In closing, Jackson emphasized that the "rich and powerful likewise often curve the acts of regime to their selfish purposes." The wealthy Americans stood to benefit from the banking concern's recharter, he argued, non farmers, mechanics, and laborers.

With no chance of overriding the president's veto in Congress, Biddle maneuvered the banking concern's resources against Jackson. He called in loans, making information technology more difficult for banks and businesses to borrow money. If Americans felt the loss of the Bank of the The states directly, he reasoned, they would turn confronting Jackson and back up recharter. Unfortunately for Biddle, however, he had overplayed his manus, and the banking concern's efforts alienated those who might accept been well-nigh inclined to defend it. Business leaders and Congress turned confronting him.

Equally the then-called Banking company State of war escalated, Jackson recommended moving the federal regime's deposits out of the Bank of the U.s.a., and Treasury Secretary Roger Taney began transferring them to pro-administration land banks.

This 1833 lithograph, entitledThe Downfall of Female parent Banking company, applauds Jackson's order for the removal of federal funds from the Banking company of the United States. Jackson holds up an "Social club for the Removal of the Public Coin." Nicholas Biddle (depicted with devil'south horns) and his supporters scatter every bit the depository financial institution building falls around them.

Jackson'southward opponents ridiculed these "pet banks" as a source of corruption, simply to no avail. The removal of the government's deposits crippled the federal banking concern, and information technology dissolved in 1836. The next year, another fiscal panic, the Panic of 1837, swept the country. Guided in his veto decision by his constitutional convictions and political exigencies, Jackson'southward victory over the banking company doomed central banking in the U.s. until the cosmos of the Federal Reserve in the early twentieth century.

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Review Questions

i. Andrew Jackson justified vetoing the bill to recharter the Bank of the U.s. for all the post-obit reasons except

1. the Jacksonians believed the banking concern contributed to U.South. intervention in the War of 1812 and other wars
2. Jackson believed the bank was unconstitutional and that the Supreme Courtroom had erred inMcCulloch 5. Maryland
3. the Jacksonians believed the depository financial institution acted as a monopoly and received exclusive privileges from Congress
4. foreigners controlled more than xx percent of the depository financial institution's stock

2. Which of the following presents the events of the "Bank Wars" in the correct chronological order from earliest to most recent?

1. McCulloch v. Maryland, Jackson vetoes the bill rechartering the Second Bank, Biddle calls in loans, Jackson recommends moving authorities funds to pet banks
2. McCulloch v. Maryland, Biddle calls in loans, Jackson recommends moving government funds to pet banks, Jackson vetoes the nib rechartering the Second Depository financial institution
3. Biddle calls in loans,McCulloch 5. Maryland, Jackson recommends moving government funds to pet banks, Jackson vetoes the bill rechartering the Second Bank
4. McCulloch v. Maryland, Jackson recommends moving authorities funds to pet banks, Biddle calls in loans, Jackson vetoes the bill rechartering the Second Bank

3. During the Bank State of war, Nicholas Biddle was

1. a prominent fellow member of Congress who wanted to betrayal Andrew Jackson's antagonism towards the Bank of the United States
2. a political ally of Andrew Jackson'south who wanted to close the Banking concern of the Us
3. the president of the Depository financial institution of the United states, who wanted its charter renewed
4. Andrew Jackson'due south secretary of the Treasury who transferred money from the Bank of the United States to Jackson's pet banks

4. The Panic of 1819 was a turning indicate in U.S. economic history considering

1. it guaranteed the election of Andrew Jackson as president
2. it resulted in the decision inMcCulloch five. Maryland, stating the Banking concern of the The states was constitutional
3. it demonstrated to "hard currency" supporters that only gold- and argent-backed currency would maintain a viable economic system, giving credence to Jackson'due south beliefs about the national depository financial institution in the 1830s
4. it led to the nomination of Henry Clay, who, every bit president, would have guaranteed the continuation of the Bank of the United states

5. Despite being a member of the Republican Party, which of the post-obit presidents signed the renewal charter of the Bank of the United States in 1816?

1. Thomas Jefferson
2. James Madison
3. James Monroe
4. John Quincy Adams

half dozen. Opponents of the Banking company of the U.s.a. argued against it for all the post-obit reasons except

1. the Bank favored eastern business organization interests
2. the Bank catered to the elite
3. the Banking company had been granted a monopoly over country banks
4. farmers were guaranteed necessary loans from the Depository financial institution

7. The destruction of the Banking company of the United states of america led to

1. the election of Martin Van Buren as president
2. the creation of the National Republicans as a new political party
3. the end of cardinal banking in the United States until the creation of the Federal Reserve
4. the firsthand rechartering of the Bank of the United states

Free Response Questions

1. Explain Andrew Jackson's decision to veto the 2d Depository financial institution of the Usa.
2. Explicate why the Jacksonians opposed the 2d Banking concern of the United states despite congressional efforts to brand the institution more autonomous.

AP Practice Questions

Excerpt i "The present corporate torso, denominated the president, directors, and visitor of the Bank of the Usa, will have existed at the time this deed is intended to accept effect twenty years. It enjoys an exclusive privilege of banking under the authority of the Full general Regime, a monopoly of its favor and support, and, as a necessary issue, almost a monopoly of the strange and domestic exchange. The powers, privileges, and favors bestowed upon it in the original lease, past increasing the value of the stock far in a higher place its par value, operated equally a gratuity of many millions to the stockholders. . . . It is not our own citizens merely who are to receive the bounty of our Regime. More than 8 millions of the stock of this bank are held past foreigners. By this human activity the American Republic proposes near to make them a present of some millions of dollars."

Andrew Jackson, Bank Veto Bulletin, July x, 1832

EXCERPT 2 "The veto is an extraordinary power, which, though tolerated past the Constitution, was not expected, by the convention, to exist used in ordinary cases. It was designed for instances of precipitate legislation, in unguarded moments. Thus restricted, and information technology has been thus restricted by all former presidents, it might non be mischievous. During Mr. Madison's administration of eight years, there occurred but ii or three cases of its practice. During the concluding administration, I do not at present think that information technology was one time. In a period little upward of 3 years, the present chief magistrate has employed the veto iv times. We now hear quite frequently, in the progress of measures through Congress, the statement that the president volition veto them, urged as an objection to their passage."

Henry Clay, Oral communication to the U.S. Senate on President Jackson's veto of the rechartering of the Bank of the United States, July 10, 1832

Refer to the excerpts provided.

1. A major difference betwixt Andrew Jackson and Henry Clay in their arguments regarding the Banking concern of the U.s.a. concerned

1. the fact that the bank dealt simply with the aristocracy
2. the constitutionality of the banking concern
3. Clay'due south belief that the veto should be used liberally
4. the extent of the president's power over the banking company

2. In vetoing the recharter of the Depository financial institution of the United states of america, Andrew Jackson expressed his disapproval of which Supreme Court determination?

1. Marbury 5. Madison
2. Dartmouth v. Woodward
3. McCulloch v. Maryland
4. Ogden five. Gibbons

3. Which of the following best describes the motivation for the consequence described in the excerpts?

1. A disagreement over the proper interpretation and use of the president's veto ability
2. The failure of the agricultural industry, due to the lack of bachelor funding
3. Clay'due south want for a political victory to lucifer Jackson's winning of the Nullification Crisis
4. Lingering animosity between Clay and Jackson over the "Corrupt Bargain" in the ballot of 1824

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Main Sources

Jackson, Andrew. "Veto Message" inJackson vs. Biddle's Banking concern: The Struggle Over the 2nd Banking company of the United States. Second ed. Edited by George Rogers Taylor, 27. Lexington, MA: D.C. Heath and Company, 1972.

Suggested Resource

Hammond, Bray.Banks and Politics in America from the Revolution to the Civil War. Princeton, NJ: Princeton Academy Press, 1957.

Jackson, Andrew. "Veto Message" inJackson vs. Biddle'southward Bank: The Struggle Over the Second Bank of the United States. 2nd ed. Edited by George Rogers Taylor, 10–29. Lexington, MA: D.C. Heath and Company, 1972.

Lamoreaux, Naomi.Insider Lending: Banks, Personal Connections, and Economical Development in Industrial New England. Cambridge, Britain: Cambridge Academy Press, 1996.

Remini, Robert V.Andrew Jackson and the Bank War. New York: Norton, 1967.

Remini, Robert V.The Life of Andrew Jackson. New York: Harper & Row, 1988.

Taylor, George Rogers ed.Jackson vs. Biddle'southward Depository financial institution: The Struggle Over the Second Banking company of the United States. Second ed. Lexington, MA: D.C. Heath and Company, 1972.

Temin, Peter.The Jacksonian Economic system. New York: Norton, 1969.

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Source: https://billofrightsinstitute.org/essays/andrew-jacksons-veto-of-the-national-bank

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