Jackson and the Bank Battle
The war on the Second Bank of the United States can be described as one of the most controversial aspects of President Andrew Jackson 's two terms in the office. President Jackson used his presidency to destroy the Second Bank of the United States and many government powers and institutions were affected by the methods and principles he acted upon.
The idea for a Bank of the United States or a National Bank was conceived by Alexander Hamilton, Secretary of Treasury under President George Washington (Remini, "Andrew Jackson and the Bank War," 23). It was originally supposed to serve as a central fiscal system for the nation where the government would deposit money and appoint five of the twenty five board members, in an attempt to provide some sort of government regulation and representation in this new bank. Most of the bank 's business would be private and it would be privately run (Remini, "Andrew Jackson and the Bank War," 24). The biggest problem with the banking system of the time was the discrepancy between paper money and "hard money," which is the bimetallic system of gold and silver (Remini, "Andrew Jackson and the Bank War," 25). This led to the challenge of issuing different bank notes at different state branches; the amounts were not always the same and it caused a problem with knowing which medium of exchange was correct (Remini, "Andrew Jackson and the Bank War," 25). The charter on the First Bank of the United States expired in 1811 but, due to financial troubles after the War of 1812, James Madison chartered the Second Bank of the United States on May 10, 1816 (Remini, "Andrew Jackson and the Bank War," 26). The new bank had a capital stock of thirty five million dollars, as opposed to the ten million dollars of stock that the first bank had. The original President of the new bank was Captain William Jones, who proved to do little to help the bank in its beginning. After him came Langdon Cheves, who saved the bank during a financial
The idea for a Bank of the United States or a National Bank was conceived by Alexander Hamilton, Secretary of Treasury under President George Washington (Remini, "Andrew Jackson and the Bank War," 23). It was originally supposed to serve as a central fiscal system for the nation where the government would deposit money and appoint five of the twenty five board members, in an attempt to provide some sort of government regulation and representation in this new bank. Most of the bank 's business would be private and it would be privately run (Remini, "Andrew Jackson and the Bank War," 24). The biggest problem with the banking system of the time was the discrepancy between paper money and "hard money," which is the bimetallic system of gold and silver (Remini, "Andrew Jackson and the Bank War," 25). This led to the challenge of issuing different bank notes at different state branches; the amounts were not always the same and it caused a problem with knowing which medium of exchange was correct (Remini, "Andrew Jackson and the Bank War," 25). The charter on the First Bank of the United States expired in 1811 but, due to financial troubles after the War of 1812, James Madison chartered the Second Bank of the United States on May 10, 1816 (Remini, "Andrew Jackson and the Bank War," 26). The new bank had a capital stock of thirty five million dollars, as opposed to the ten million dollars of stock that the first bank had. The original President of the new bank was Captain William Jones, who proved to do little to help the bank in its beginning. After him came Langdon Cheves, who saved the bank during a financial
Cited: Jackson vs. Biddle 's Bank: The Struggle Over the Second Bank of the United States. Ed. George R. Taylor. Lexington: D.C. Heath and Company, 1972. Remini, Robert V. Andrew Jackson and the Bank War. New York: W. W. Norton Company, Inc. , 1967. Remini, Robert V. Andrew Jackson. New York: Twayne, Inc., 1966. The Jacksonians and the money power, 1829-1840. Ed. Frank O. Gatell. Chicago: Rand McNally & Company, 1967.