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?
Signup and view all the answers
Was the bank rechartered, if so, what year?
Signup and view all the answers
What year was the second Bank of the United States up for renewal?
Signup and view all the answers
Who said, 'The bank is trying to kill me, but I will kill it'?
Signup and view all the answers
What year did Jackson veto a bill saying that the bank will not be rechartered?
Signup and view all the answers
What did Andrew Jackson do to starve the Bank of the United States?
Signup and view all the answers
Who won the election of 1832, Henry Clay or Andrew Jackson?
Signup and view all the answers
Martin Van Buren won the election of 1836.
Signup and view all the answers
Why did the Whig Party form?
Signup and view all the answers
What was the Panic of 1837?
Signup and view all the answers
What did the new flow of cash lead to?
Signup and view all the answers
What did people exchange their paper money for during the Panic of 1837?
Signup and view all the answers
The banks all had enough money.
Signup and view all the answers
Was this one of the worst economic crises in the world?
Signup and view all the answers
How long did the economic depression last?
Signup and view all the answers
Which item's price fell due to an oversupply?
Signup and view all the answers
What percent of the nation's factories closed?
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.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
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.