How Did Andrew Jackson Respond To The Financial Panic Of 1837
Specifically, he used the power to veto the second national bank. Jackson and his followers were majorly opposed to the second national back and the charter was about to expire. Jackson thought that the national bank was against the common people and thought it gave the government too much control over the economy. When the charter was due jackson veto the
Jackson thought that if charters were favored towards one area of society instead of another, then some people would view it as favoritism towards an elite society. Jackson believed that that was a direct violation of equal liberty of republicanism so he didn’t re-charter the Bank of the United States. The market revolution involved the creation of canals, roadways and railways, foreign investment, new technology, and industrialization. The fact that Jackson didn’t re-charter the Bank of the United States led to the Panics of 1837 and 1839, both of which occurred after he left office. Watson argued that Jackson was extremely self-confident.
In Jackson's Bank Veto Message, he states that his principal reason for his veto was that he wanted to prevent the existence of monopolies. This is a fine reasoning that also goes along with is political views. The objection to this is that he was warned on how it would be detrimental to the United States economy but still went through with it. It cannot be overlooked that he had to fire two different secretaries until he finally appointed a close friend to agree with him. This is an obvious abuse of power, seeing as he fired two people simply for telling him that his idea would not work.
Andrew Jackson believed the banks to be corrupt which is the reason that he declared war on them. The First Bank’s charter ended in 1811, so with the War of 1812 and no bank, the country suffered financially and many people were in debt. That’s why in 1816, another bank was chartered and it became known as the Second Bank of the United States. Eventually, the bank grew and had supreme economic power with over 35 million dollars in capital. Most of the money was put into it by investors whereas some was put into it by the government that owned one-fifth of the bank.
Jackson 's push to abolish national banks other wise known as "the bank wars" was one of his more well known pushes for small government. In 1832, Jackson had vetoed a bill calling for an early renewal of the Second Bank’s charter, but renewal was still possible when the charter expired
Andrew Jackson was very against the growth of the new upcoming banking system in the
Even though Jackson did despise the bank, many of his ¨Jacksonians¨ supported the idea of a Second Bank. The bill eventually passed both the House and the Senate. President Jackson STILL vetoed the bill a week after it was passed. He explained heavily why he felt that he needed to veto the bill. This was one of the most important state papers of his entire presidency.
From what I read and what he said, I thought it sounded like he didn’t want to shut down the United States Bank. And then in Document 5, Webster acted like Jackson should put an end to the bank by saying, “It manifestly seeks to inflame the poor against the rich, it wantonly attacks whole classes of the people, for the purposes of turning against them the prejudices and resentment of the other classes.”
In this veto letter against the new bank, he states,”It is regretted that the rich and powerful too often bent the acts of government their selfish purposes” (Jackson, 1832). This proves Jackson’s worries for the national money because of what the private corporations would do to with bank’s money. This was because they owned more than the majority of the bank. He also shows that he is worried about the national money. As stated before he said that the rich and powerful which are the corporations often bend the rules to benefit only themselves but not to the nation.
Not only does Jackson believe it to be in the best interest of the country to support a few of the wealthy by a recharter of the Bank along with those foreign shareholders who would also
The South had many reasons to want to secede from the North. From the social point of view the South had many regional conflicts such as disputes between New Mexico and Texas, and war within Kansas. Within the political point of view there is the fact that the Whig party was formed in opposition to Andrew Jackson and the Democratic Party, as well as presidential turmoil such as the “corrupt bargain between John Quincy Adams, Henry Clay, and Andrew Jackson. Economic problems were also an issue with the South wanting to secede from the Union. Problems such as finance and banking, as well as expansion to the west.
““I have always been afraid of the bank” “Mischief springs from the power which the moneyed interest derives from a paper currency which they are able to control, from the multitude of corporations with exclusive privileges... which are employed altogether for their benefit.” He advises the public to be cautious with paper money, the irony in it is yet another reason why he should not be on the twenty dollar bill. Andrew Jackson gained control over the bank after vetoing the renewal of the bank charter. He was able to seperate the money into state banks, draining the federal bank of all its money. The bank slowly died and the circulation of money increased inflation, causing the money to be worth less.
national bank. As Jacksons term continued, he truly grew a desire to crush the Second Bank of the United states. Over time Jackson decided that it could not continue how it was, and that it did not want warrant reform, it must be destroyed. Jacksons reason for this conclusion was a result of his past financial problems, his views on states’ rights, and his tennesse roots. The Second Bank centralized financial might, jeopardizing economic stability; it served as a monopoly on fiscal policy, but it did not answer to anyone within the government.
Andrew Jackson didn’t want the bank to get rechartered so after the bank flew through Congress he vetoed it, Congress was unable to override Jackson’s veto. Then Jackson proceed to order his secretary of the treasury to move future government funds to state banks called pet banks. While that was happening the government would remove their funds from the United States bank till it was in a financial panic. Jackson held his ground while Congress censuring him that the removal of the United States bank was a misuse of his presidential power. The United States went into an uncontrolled inflation and Jackson issued the Specie Circular which declared the federal government would only accept hard money for purchasing public lands.
This caused the new banks’ failure by issuing the Specie Circular order in 1836. The government land required payment to be in gold. The National Banks of United States collapsed, this caused what we know as the Panic of 1837, that Andrew Jackson’s successor had to deal with. This was much unorganized, banks got removed, etc. The lack of national banks was one of the many speculations that contributed policies that caused the market to crash in the year of 1837.
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