Bank War Jackson and Biddle

Second Bank of the US Re-chartered in 1816 Led by Bank President: Nicholas Biddle Bank did the following things: –Sold government bonds –Was the official depository for federal money –Provided business loans –Controlled state money supply –Created a strong national currency

Northeast (favors the bank) Paid dividends to business owners Provided loans Maintained a sound money supply South and West (oppose) Prevented state banks from issuing as much money as they wanted to Refused loans to small businessmen They could not afford to buy stock and get dividends Unconstitutional Monopoly over nation’s credit and currency

Biddle asked for a new charter for the bank and Jackson vetoed it Jackson created state banks “wildcat banks”. They made unwise money choices because no one was controlling the money supply Specie Circular: In an attempt to control the economy (which was out of control), Jackson wrote a mandate called the Specie Circular that stated that you could pay for land in gold and silver

Immediately led to the Panic of 1837 –General depression caused by worthless money and banks in crisis By then Martin Van Buren was President. He established the Independent Treasury System which meant that there were smaller national treasuries all over the US so that our finances were not affected by private state banks End of the BUS represented a victory of the South and West over the Northeast (common people vs. Economic monopoly)

Election of 1840 Van Buren (Democrat) vs. William Henry Harrison (distinguished fighter at the Battle of Tippecanoe) Whig Whigs easily win Van Buren was not reelected because the people blamed him for the economy