Podcast
Questions and Answers
Why did Jackson oppose the bank?
Why did Jackson oppose the bank?
He saw it as unconstitutional since the constitution did not authorize Congress to create the Bank of the United States.
What year did the Supreme Court rule that the Bank of the United States was unconstitutional?
What year did the Supreme Court rule that the Bank of the United States was unconstitutional?
1819
Jackson believed that the states had the right to charter the banks.
Jackson believed that the states had the right to charter the banks.
True (A)
What year was the first Bank of the United States chartered, and when did it expire?
What year was the first Bank of the United States chartered, and when did it expire?
Was the bank rechartered, if so, what year?
Was the bank rechartered, if so, what year?
What year was the second Bank of the United States up for renewal?
What year was the second Bank of the United States up for renewal?
Who said, 'The bank is trying to kill me, but I will kill it'?
Who said, 'The bank is trying to kill me, but I will kill it'?
What year did Jackson veto a bill saying that the bank will not be rechartered?
What year did Jackson veto a bill saying that the bank will not be rechartered?
What did Andrew Jackson do to starve the Bank of the United States?
What did Andrew Jackson do to starve the Bank of the United States?
Who won the election of 1832, Henry Clay or Andrew Jackson?
Who won the election of 1832, Henry Clay or Andrew Jackson?
Martin Van Buren won the election of 1836.
Martin Van Buren won the election of 1836.
Why did the Whig Party form?
Why did the Whig Party form?
What was the Panic of 1837?
What was the Panic of 1837?
What did the new flow of cash lead to?
What did the new flow of cash lead to?
What did people exchange their paper money for during the Panic of 1837?
What did people exchange their paper money for during the Panic of 1837?
The banks all had enough money.
The banks all had enough money.
Was this one of the worst economic crises in the world?
Was this one of the worst economic crises in the world?
How long did the economic depression last?
How long did the economic depression last?
Which item's price fell due to an oversupply?
Which item's price fell due to an oversupply?
What percent of the nation's factories closed?
What percent of the nation's factories closed?
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Study Notes
Opposition to the Bank
- Jackson viewed the Bank of the United States (BUS) as unconstitutional, citing a lack of Congressional authorization in the Constitution.
- States had the right to charter banks, a belief held by Jackson.
History of the U.S. Bank
- The first BUS was chartered in 1791 for 20 years, expiring in 1811, then subsequently rechartered in 1816.
- The second BUS was up for renewal in 1836.
Key Events and Statements
- In 1832, Jackson vetoed a bill for recharter of the bank, stating “the bank is trying to kill me but I will kill it.”
- Jackson won the 1832 election decisively against Henry Clay, with a vote count of 219 to 49.
Economic Impact and Reactions
- Jackson took measures to weaken the BUS by transferring funds to state banks, referred to as "pet banks."
- The Panic of 1837 occurred when state banks offered excessive credit, leading to bank failures due to federal loan limits.
Economic Crisis Overview
- The inflation rose sharply due to increased cash flow and the economic instability triggered the crisis.
- During this period, people exchanged paper money for gold and silver due to a lack of trust in the banks.
- Approximately 90% of the nation's factories closed during the economic downturn, marking one of the worst economic crises in history.
- The economic depression lasted for three years, with significant impacts on commodities like cotton, whose prices dropped sharply.
Political Responses and Changes
- The Whig Party emerged to challenge Jackson and the Democrats, advocating for a weaker presidency and a stronger Congress.
- Martin Van Buren won the election of 1836, continuing the political shifts initiated by Jackson's presidency.
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