Jacksonian Era

First Bank of the US Created in 1791 by Hamilton under the Washington presidency Remember the Hamilton Plan? When was the Second Bank of the US created? 1816 under James Madison Lasted until 1836 Its Purpose…? Establish credit (domestic & foreign) Hold the countrys money Create order with the nations financial structure

Jackson believed the bank was unconstitutional Why? It favored only the rich and made the rich richer Only states had the right to charter banks, not the federal govt. Other reasons for disliking the bank of the US It concentrated too much of the nations money in one place The bank exercised (too much) influence over members of Congress It favored Northeastern states over Southern or Western states Jackson disliked Bank President Nicholas Biddle Biddle came from a wealthy and powerful family Biddle was the opposite of the self-made Andrew Jackson

Henry Clay (W) and Daniel Webster (W) had a plan to defeat Andrew Jackson in the election of 1832… They convinced Nicholas Biddle to apply early for an extension of the banks charter Charter: A written grant for authority. They knew Jackson would VETO the charter application, and they believed that would anger the American people What Actually Happened… Biddle applied for the charter & Jackson VETOED it. The American people supported his VETO and re-elected Jackson Plan Backfired!

Jacksons plan to end the bank He VETOED the bill to renew the banks charter. Charter expired in 1836 He ordered the withdrawal of ALL government money from the bank The money was dispersed among what came to be known as his pet banks PET BANKS: Smaller state banks