Bank war Wednesday April 3rd 2019 Homework: Unit test Friday Extra help after school tomorrow Quizlet has been posted Bring in toys!

Blast from the past The first National Bank was proposed by Alexander Hamilton, when George Washington was President. At that time Thomas Jefferson opposed the National Bank because he thought: It was Unconstitutional . It gave the Federal government too much power. It unfairly favored the rich.

Vetoed Since the President has the right to VETO, congress may override it with 2/3rds majority When it was time to renew the national bank, President Jackson vetoed the bank bill. Jackson is up for reelection in 1832

Henry clay Runs against Andrew Jackson for the second time! “I know how to defeat Jackson in the Election of 1832, I’ll push through a renewal charter of the National Bank which Jackson will surely veto making him look bad because every one loves the bank.” Runs against Andrew Jackson for the second time! National Republican

Nicholas Biddle “Jackson does not understand the purpose of the National Bank. If he veto’s the bank bill there will be no regulation of loans given to people and it will eventually hurt our national Economy.” President of the Bank of the United States

Jackson’s goal Jackson wanted to destroy the Second National Bank Charter was about to expire Jackson set up “pet banks”

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 in 1836; to prevent that from happening, he set out to reduce the bank’s economic power. Acting against …congressional committees and over the opposition of several cabinet members, and after replacing two resistant secretaries of the treasury with a more ]agreeable] appointee…Jackson announced that, effective October 1, 1833, federal funds would no longer be deposited in the Bank of the United States. Instead, he began placing them in various state banks; by the end of 1833, twenty-three ‘pet banks’ (as they were popularly known) had been selected.

National Banks VS Pet Banks One bank with all the power States banks in every state New York South Carolina Georgia

The National Bank’s charter expires and Jackson wins the Bank war