National Bank -Misleading name. This bank is not really owned or operated by the US Government. -It is private corporation that enjoys a special and unique relationship with the US Government. -Who owns the company stock? A mixture of the US Gov, wealthy private citizens, as well as a large number of foreign banks and investors.

National Bank What does the bank do? It serves as a depository for the public funds of the United States. Makes loans. Regulates the money supply of the US -Accepts paper money printed by state banks, then demands payment in Specie from them -This prevents state banks from issuing to much paper $ and causing inflation

National Bank Who supports the bank? People involved in major business transactions, business owners, manufacturers and farmers that take out loans, Easterners, Whigs, Henry Clay Who does not support the bank? People from a more rural background, who are unfamiliar with loans and debt, suspicious of over an over reaching government, fear that the bank might cause state operated banks to fail, leaving them holding worthless paper, Democrats, Andrew Jackson, and state banks themselves

National Bank The bank operates on a 20 year charter, and is up for renewal in 1836. Henry Clay and Nicolas Biddle want to force Jackson into a tough spot, so they attempt to re-charted the bank 4 years early. There is plenty of support for the bank in Congress, and Congress votes to re-charter the bank. The bill now goes to Andrew Jackson, who can either sign it into law, or veto it.

Bank War https://www.youtube.com/watch?v=o0pc7eH41vY

Bank War Jackson Vetoes the re-chartering of the bank. Using language of unconstitutionality, attacking its foreign ownership, and reminding Americans that the bank was mostly unaccountable to anyone, his veto is incredibly popular among the common man The veto is so popular with the common voter, that Andrew Jackson destroys Henry Clay in the 1832 Presidential Election.

Bank War Jackson starts to dismantle the bank in its remaining years by withdrawing the Governments funds from it and depositing them in state banks. (Pet Banks) This goes against the direct order of Congress. Jackson declares that his re-election represents the “decision of the people against the bank” and he now had a duty to destroy it. This is a huge demonstration of power on Jackson’s part.

Rodger B. Taney Super Jacksonian Appointed Sec. of Treasury and is the one who actually carries out the withdrawal of Government funds from the bank. Will later be appointed to the Supreme Court by Jackson and be an example of the legacy of the Jacksonian Democrats.

Significance This conflict over the bank will create numerous Jackson supporters and also numerous enemies. We see the formation of the Whig Party. Very diverse group with a common hatred of Jackson. Whigs play a big role up until the Civil War. Jackson effectively destroys the banking system created by Hamilton, and the American System supported by Henry Clay. America sees “a profound check on economic activism”