1. Andrew Jackson and the Second Bank of the United States

2. I. What Do Banks Do? Banks do not simply function as places to store money: –Banks invest your money in the form of loans –The interest that these loans generate are the banks major source of profit

3. I. What Do Banks Do? The Second BUS… –Was meant to provide credit (loans) to capitalist who wanted to invest the money in new business ventures –It also regulated, or set boundaries on, the activities of smaller banks –However, in practice, these capitalists were almost always northern and wealthy

4. II. Jackson vs. The BUS Why did Jackson hate the bank? –Jackson hated the bank because he viewed it as a bastion of privilege- what good did it do the common man? –He also saw it unconstitutional- its director, Nicholas Biddle, was not responsible to the American people. –As such, he thought it was his duty as president to eliminate it and began the “Bank War”

6. II. Jackson vs. The BUS Jackson takes on the Bank –In 1832, he vetoed the bill that extend the Bank’s charter –He also ordered his Sec. of the Treasury, Roger Taney, to remove all the government funds from the Bank and to place it in smaller banks.

7. III. Opposition to Jackson Dissent –Many Americans, especially Northerners, wanted the bank to remain –In Congress, Clay, Calhoun and Webster, all of whom had large loans from the Bank, fought to keep it alive –They formed a new political party, the Whigs, to oppose “King” Andrew Jackson

8. III. Opposition to Jackson Reaction –Nicholas Biddle tried to turn Americans against Jackson by calling in loans, but this served to make more Americans angry at the bank –The Bank was eventually “killed” by Jackson once the Federal funds were removed.