Jackson and the Second Bank

Andrew Jackson and the
national bank

The bank war

The "National Bank" (also known as the First Bank of the United States) did not directly transform into the "Second Bank of the United States,"

When the charter of the First Bank expired in 1811, the economic instability following the War of 1812 led Congress to establish a new national bank, called the Second Bank of the United States, to address the financial challenges of the time; essentially, it was a new institution created to fulfill a similar function as the First Bank had done previously. 

Multiple Select

Select TWO specific functions of the Second National Bank

• Pays the British for their colonies the US acquired

• Pays the government's bills

• Creates money

• Facilitates gambling

​The bank war

The Second Bank was supported by the Whig Party, but deeply hated by Jackson and his Democratic Party.

Open Ended

What political party did the Democrats evolve from, and why did they hae the First Bank?

​The bank war

Jackson and his supporters thought a federal bank took TOO MUCH POWER from the states and could lead to corruption!

The Bank was also run by private bankers, though it was created by Congress. Jackson despised these men who grew rich from the public bank. He thought this bank HELPED the rich and left the poor IN THE DUST!

​The bank applies for renewal

The Whig Party was scared that the president (Andrew Jackson), would destroy the bank.

The Bank charter (allowance) was due for renewal in 1836. The Whigs thought if they applied early for renewal in 1832, they may just defeat Andrew and his Democrats.

They thought that most Americans did enjoy the National Bank, and that if Jackson vetoed the renewal, it could make him angry and cost him the upcoming election.

Poll

Do you think Jackson will risk his next presidency and veto the National Bank renewal?

• YES! THIS MAN WON'T QUIT!

• No... He's a pretty chill guy 🤷🏽‍♀️

​Jackson cuts off the bank!

Jackson VETOED the bill, giving two reasons:

1) He thought the bank HELPED aristocrats at the expense of the common people.
2) He UPHELD that the National Bank was unconstitutional. The Constitution did not EXPLICITLY give Congress the power to create it!

​the election of 1832

Despite the plan of the Whig Party, the common people vote for Andrew Jackson and turn down the idea of the National Bank along with him!

Jackson wins a SECOND term as President of the United States.

Multiple Choice

What year did we learn that the Bank was set to expire in?

• 1832

• 1840

• 2000

• 1836

​the bank loses its national role

Jackson was NOT prepared to wait until 1836 to get rid of the Bank.

Jackson ordered the Secretary of the Treasury to STOP putting government money in the Bank, and instead to deposit federal money in STATE banks.

This loss of funds CRIPPLED the Second Bank, giving it an early deathbed.

Open Ended

But wait.... Do you think any problems will arise from the destruction of the National Bank??

​An economic crisis to follow....

We will check back in with this tomorrow!

Thank you for your attention!