NicholasBiddle

PresidentJackson

4. The National Bank Debate

“Soft”(paper) $

“Hard”(specie) $

3 state bankers feltit restrained theirbanks from issuingbank notes freely.

3 supported rapid economic growth & speculation.

Issues over the Bank

3 felt that coin was

the only safecurrency.

3 didn’t like any bankthat issued banknotes.

3 suspicious of expansion &speculation.

The Monster is Destroyed

• “Pet Banks”• 1832 Jackson vetoed the extension of the

2nd National Bank of the United States.• 1836 the charter expired.• 1841 the bank went bankrupt! Now serves as the Federal Reserve

The Legacy of Andrew Jackson

1836 Election Results

The Specie Circular (1836)

Speculators created “wildcat banks” that fueled the runaway inflation.

So, buy future federal land only with gold or silver. This move shocked the system.

Jackson’s goal to curb the land speculation.

Result of the Specie Circular

$ Banknotes loose their value.$ Land sales plummeted.$ Credit not available.$ Businesses began to fail.$ Unemployment rose.

Conclusions of Jackson

A “democratic autocrat” No rights for:

Women Slaves

Harm to Native Americans