The National Bank Debate President Jackson Nicholas Biddle

Jackson vetoed this bill THE BANK WAR Jackson believed that the Bank of the United States was unconstitutional In 1832, an election year, Henry Clay decided to challenge Jackson on the bank issue by persuading a majority in Congress to pass a bank recharter bill Jackson vetoed this bill The Cartoon from the 1832 presidential cartoon depicts Jackson as a cat with “Veto” written on his tail clearing Uncle Sam’s barn of bank and Clay rats

Biddle Fights Back! Biddle’s Strategy Political Pressure “This worthy president thinks that because he has scalped Indians and imprisoned judges he is to have his way with me. He is mistaken.” Biddle’s Strategy Political Pressure Specie payment Turns into a battle of the wills By 1834 the bank war is effectively won by Jackson (Bank’s charter runs out in 1836, goes bankrupt in 1841)

THE BANK WAR The Bank War inspired numerous cartoons. The boxers are Nicholas Biddle and Andrew Jackson. The lady holding a bottle of port says, "Darken his daylights, Nick. Put the Screws to him my tulip!" Daniel Webster: "Blow me tight if Nick ain't been crammed too much. You see as how he's losing his wind!" Henry Clay: "Hurrah Nick my kiddy! Hit him a pelt in the smellers!" Martin Van Buren: "Go it Hickory, my old Duffer! give it to him in the bread basket, it will make him throw up his deposits!" Major Jack Downing (a mythical Jacksonian hero): "I swan if the Ginral hain't been taken lessons from Fuller!" The man standing next to the whiskey bottle: "Hurrah my old yallow flower of the forrest, walk into him like a streak of Greased lightning through a gooseberry bush!" A triumphant Jackson holds his order to remove government deposits from the bank as the bank crumbles and a host of demonic characters scurry from its ruins.

Results of the Bank War Rapid Inflation State banks expand/make rapid loans Year # of Banks Loans 1829 329 $137 Million 1834 506 $324 Million 1836 718 $457 Million 1837 788 $525 Million Rapid increase in land speculation 1832: 2.6 million acres sold 1834: 7.4 million 1835: 14.8 million 1836: 24.9 million

THE BANK WAR An overwhelming majority of voters approved of Jackson’s veto Jackson won reelection with more than ¾ of the electoral vote The 1832 Election Move up 2 slides in the future

Causes of the Panic of 1837 The Panic of 1837! Bank war-demise of the BUS Specie Circular Banknotes lose their value. Land sales plummeted. Credit not available. Businesses began to fail as banks call in loans. Banks fail, stimulate a depression The Panic of 1837!