Andrew Jackson Bank Wars Analysis

On september 10th 1883 , president Andrew Jackson decided shut down all of the second national banks. In addition to that he was also able to use all of his executive power to remove all federal funds from the bank. And this was the beginning of a new dispute known as the Bank Wars. According to Tthe thhe bank Bank wars is a reference to the political struggle that developed over the issue of recharting the second bank during Andrew Jackson’s Administration. These steps of actions taken by the President of the U.S himself will have severe consequences that will not only affect the American citizens negatively but the economic system as well.
The first national bank was created by George Washington and Alexander Hamilton in 1791. The bank’s
During the economic boom that occurred after the killing of the second national bank, many banks impulsively gave away loans due to the state bank’s new charter. This resulted in the increase of cotton production in the South, and an enormous expansion of land in the West.There was also a boom in the industry in the north. For this reason there was an increase in sales and price of land, which were mainly paid with bank notes. Unfortunately with this prosperity came inflation. President Jackson became very anxious of this inflation and instead of taking responsibility he blamed the people and the escalated use of paper and bank notes. So he issued the Specie Circular, which stipulated that only gold or silver could be used as payment for public land. John also states that with many loans and payment in bank notes, state banks were reduced to calling in all of their loans and depositors had to withdraw all of their funds. While all of this stuff was a occurring in the united states, Britain had problems of their own and were facing recession. This forced Britain to call nin all of their American loans. As you can see the Americans received one problem after another. This was the creation of the calamity known as the Panic of 1837. To put this in short terms, this immense recession lasted six years and eight hundred banks were suspended for business. Throughout
For the Americans, this was their cue that represented the victory of President Jackson. This meaht that Jackson won the bank war. The defeat of the bank war was extremely unfortunate for the people, but it was affluent for Jackson because he would finally achieve his goal. As one already know victory and glory does not last forever and that’s exactly what happened to the president. According to the history channel he was not able to enjoy his success for a long time because in the year of 1834, Congress censured Jackson for what they viewed as his abuse of presidential power during the Bank War. It was about time considering that he was the one who cause this major this major bank crisis in the first place. Andrew Jackson might have been removed from his position as president, but that didn’t exactly change the fact that America went through a bank crisis, which nearly destroyed the economy and will need a strong, intelligent leader to assist them in rebuilding their economy into a more stable one. And that man was Martin Van