
Most powerful bank in the country
› Held government funds and issued money
President of Bank: Nicholas Biddle
 Jackson’s Hatred for the Bank…

› Distrust in Banks after losing money
› Thought Bank had too much power
› Could influence Congress through loans
› Favored the wealthy and hurt the “common
man”

Bank need a charter to operate
› 1832 – Biddle asks for a renewal, even
though it did not expire till 1836
› 1832 – Election year, Biddle thought Jackson
would agree to keep supporters on his side
› Jackson took the risk

Jackson vetoes Congress vote to renew
Bank charter
› Claimed bank was…
 Unconstitutional
 Monopoly

Became main issue of the Presidential
campaign of 1832
› Henry Clay calls Jackson a tyrant and a
president that wanted too much power
› Jackson claimed he was a defender of the
people
› Jackson wins reelection in 1832

Jackson’s agenda
› Destroy the Bank before its charter ended
› Deposited government funds in state banks
(aka = pet banks)

Biddle fights back
› Makes it harder for people to borrow money

Jackson wins the war, but the economy
would be the victim
http://www.history.com/videos/jackson-censured-in-bank-war#jackson-censured-in-bank-war

State banks issued too much money, which
resulted in inflation
› Inflation = an increase in prices and a decrease
in the value of money
Jackson left office with a “puffed-up”
economy
 Martin Van Buren is elected president in
1836
 Fear about the state of economy spread
throughout the country
 Banks ran out of gold and silver, banks
defaulted, and a depression followed

Jackson can be found on the $20 bill
 The Controversy

› Should Jackson be honored on the $20 bill
for his actions???
 Leading “exterminator” of Native Americans
 His war against the National Bank