Jackson's Opposition to the Bank Flashcards

Questions and Answers

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?

1819

Jackson believed that the states had the right to charter the banks.

True

What year was the first Bank of the United States chartered, and when did it expire?

It was chartered in 1791 and expired in 1811. Signup and view all the answers

Was the bank rechartered, if so, what year?

1816 Signup and view all the answers

What year was the second Bank of the United States up for renewal?

1836 Signup and view all the answers

Who said, 'The bank is trying to kill me, but I will kill it'?

Andrew Jackson Signup and view all the answers

What year did Jackson veto a bill saying that the bank will not be rechartered?

1832 Signup and view all the answers

What did Andrew Jackson do to starve the Bank of the United States?

He moved most of his funds into state banks, which were also called pet banks. Signup and view all the answers

Who won the election of 1832, Henry Clay or Andrew Jackson?

Andrew Jackson won 219 versus 49. Signup and view all the answers

Martin Van Buren won the election of 1836.

True Signup and view all the answers

Why did the Whig Party form?

To oppose Jackson and the Democrats, favoring a weak president and a strong Congress. Signup and view all the answers

What was the Panic of 1837?

When state banks used the new loans to offer easy credits for buying public land; banks could not loan money without federal limits. Signup and view all the answers

What did the new flow of cash lead to?

Inflation Signup and view all the answers

What did people exchange their paper money for during the Panic of 1837?

Gold and silver Signup and view all the answers

The banks all had enough money.

False Signup and view all the answers

Was this one of the worst economic crises in the world?

False Signup and view all the answers

How long did the economic depression last?

3 years Signup and view all the answers

Which item's price fell due to an oversupply?

Cotton Signup and view all the answers

What percent of the nation's factories closed?

90% Signup and view all the answers

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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Description

Explore the reasons behind Andrew Jackson's opposition to the Bank of the United States with this flashcard quiz. Each card presents key facts, including constitutional arguments and Supreme Court rulings. Test your understanding of this pivotal moment in American history.