1. Today we will… Papers from the table Chapter 12 Quiz (Thursday 3/3)
Simulate how the banking system at the national and state level worked
Papers from the table
Chapter 12 Quiz (Thursday 3/3)
Study Guide due (3/3)

2. Powerful and Undemocratic
The Bank War (pg. 366)
1. Jackson believed the bank was too
P_ _ _ _ _ _ _ and U_ _ _ _ _ _ _ _ _ _ _.
2. The bank controlled L_ _ _ _ made by the S_ _ _ _ banks.
3. The Bank’s directors could L_ _ _ _ the amount of loans the state banks could lend.
Powerful and Undemocratic
Loans
State
Limit

3. Finance New Businesses
4. The cutbacks angered F_ _ _ _ _ _ and M_ _ _ _ _ _ _ _ who borrowed money to buy L_ _ _ or
F_ _ _ _ _ _ N_ _ B_ _ _ _ _ _ _ _ _.
5. The Banks were run by P_ _ _ _ _ _ bankers, who Jackson condemned as agents of
“S_ _ _ _ _ _ P_ _ _ _ _ _ _ _” because they grew rich with
P_ _ _ _ _ funds.
6. Jackson especially hated N_ _ _ _ _ _ _ B_ _ _ _ _, President of the National Bank since 1823, because he was
W_ _ _ _ _ _ and A_ _ _ _ _ _ _.
Farmers and Merchants
Land
Finance New Businesses
Private
“Special Privilege”
Public
Nicholas Biddle
Wealthy and Arrogant

4. THE NATIONAL BANK ARGUMENT
As President, Andrew Jackson did not trust the Second Bank of the United States. He felt its leaders, like Nicholas Biddle were watching out for the wealthy business leaders. Since most if its leaders were private bankers not elected by the people, nor appointed by the President, Jackson remained skeptical of the bank.
THE NATIONAL BANK ARGUMENT
The First National Bank was created in 1791 in Philadelphia by Alexander Hamilton, during Washington’s administration. It’s charter ran out in 1811.
In 1816, The Second National Bank was created, also in Philadelphia and granted another 20 year charter.

5. Jobs Farmers – 1st seat Miners – 2nd seat Business Owners – 3rd seat
Land Speculator – 4th seat

6. Nicholas Biddle – NATIONAL BANK
(front of room)
FARMER
FARMER
FARMER
FARMER
FARMER
FARMER
MINER
MINER
MINER
MINER
MINER
MINER
BUSINESS OWNER
BUSINESS OWNER
BUSINESS OWNER
BUSINESS OWNER
BUSINESS OWNER
BUSINESS OWNER
LAND SPECULATOR
LAND SPECULATOR
LAND SPECULATOR
LAND SPECULATOR
LAND SPECULATOR
LAND SPECULATOR
BANK OF NY(2)
give loans to Americans who need money for their jobs
BANK OF PA (2)
give loans to Americans who need money for their jobs
BANK OF TN (2)
give loans to Americans who need money for their jobs

7. The Bank War Simulation
Mr. Berlanda = Nicholas Biddle (President of the Bank of the U.S.)

8. Round 1 Mr. BIDDLE’s National Bank = $1,000 US dollars
available to EACH State Bank
to lend to that state’s citizens.

9. Round 1 YOU WIN $ Farmers x2 Miners x2 Business Owners x2
RESULTS = BIG OPPORTUNITIES IN THE WEST…
YOU WIN $
Farmers x2
Miners x2
Business Owners x2
Land Speculator x2
How much is the bank lending you?
Money lent by the bank
x 2 =
You must repay your original loan this round
Money left after repaying the loan

10. Round 2 Mr. BIDDLE’s National Bank = $2,000 US dollars
available to EACH State Bank
NOTE: State Banks may NOT lend any more money until an individual’s loans are repaid.

11. Round 2 Farmers = (FLIP coin to determine) x1
RESULTS = BUSINESS IS GOOD!
Farmers = (FLIP coin to determine) x1
Miners = (FLIP coin to determine) x1
Business Owners x2
Land Speculator = (FLIP coin to determine) x1
How much is the bank lending you?
Money lent by the bank
x 1 or x 2 =
$ made or $ lost
You should repay some/all of your loan this round
Money left after repaying the loan + total from Round 1
Heads = make $
Tails = lose $

12. Round 3 Mr. BIDDLE’s National Bank = $5,000 US dollars
available to EACH State Bank.
NOTE: $1,000 to Farmers; $4,000 everyone else.
NOTE: State Banks you may demand payment of loans or portions of loans at any time. However, … you don’t want your borrowers going bankrupt b/c then you earn NO MONEY.

13. Round 3 We are stopping here for today.
Be sure to have your CURRENT TOTAL written down on your chart
Give all your money back to the bank in piles ($50’s and $100’s)
Straighten up the rows
Round 3
RESULTS = BUSINESS IS GOOD…
Farmers = (Flip to determine) x1
Miners = (Flip to determine) x1
Business Owners x2
Land Speculator x1
Heads = make $
Tails = lose $
How much is the bank lending you?
Money lent by the bank
x 1 or x 2 =
$ made or $ lost
You should repay some/all of your loan this round
Money left after repaying the loan + total from Round 2