Jackson typically chose not to attend these events, in keeping with the tradition that candidates not actively campaign for office. [197][198] [139], Clay and Massachusetts Senator Daniel Webster warned Americans that if Jackson won reelection, he would abolish the Bank. under Bank President William Jones through fraud and the rapid emission of paper money. It tried to ensure steady growth by forcing state-chartered banks to keep specie reserves. "[153] Jackson decided that he had to destroy the Bank and veto the recharter bill. [9] The push for the creation of a new national bank occurred during the post-war period of American history known as the Era of Good Feelings. president in the legislative process as evidence of the Bank’s corrupting influence on free government. The act raised the ratio to 16 to 1. [132][137][138] To that end, Clay helped introduce recharter bills in both the House and Senate. The unconfirmed cabinet members, appointed during a congressional recess, consisted of McLane for Secretary of State, Benjamin F. Butler for Attorney General, and Taney for Secretary of the Treasury. [310] The federal government earned an average of about $2 million each year from land sales in the 1820s. To Van Buren, he wrote, "Therefore to prolong the deposits until after the meeting of Congress would be to do the very act [the B.U.S.] It enjoyed enormous political and financial power, and there were no practical limits on what Biddle could do. "[183] Yet the bulk of Jackson’s supporters came from easy lending regions that welcomed banks and finance, as long as local control prevailed. Some of the animosity left over from the Panic of 1819 had diminished, though pockets of anti-B.U.S. The federal government purchased a fifth of the Bank's stock, appointed a fifth of its directors, and deposited its funds in the Bank. It did not officially nominate Jackson for president, but, as Jackson wished, nominated Martin Van Buren for vice president. This bias led the bank to not support western expansion, which Jackson favored. It had too much money which it was using to corrupt individuals. B.U.S. Jackson defeated Clay in the presidential election of 1832 despite Clay's efforts. [36] The transition was made relatively easy by the fact that Jackson's own principles of government, including commitment to reducing the debt and returning power to the states, were largely in line with their own. Biddle responded that the "great hazard of any system of equal division of parties at a board is that it almost inevitably forces upon you incompetent or inferior persons in order to adjust the numerical balance of directors". during the presidency of Andrew Jackson (1829–1837). before its 20-year term ended in 1836. [124][131], The enemies of the Bank were shocked and outraged by both speeches. The Bank War was a political struggle that developed over the issue of rechartering the Second Bank of the United States (B.U.S.) Several months later, he received an additional loan of $8,000 despite the fact that the original loan had not been paid. [33] He did not win an electoral majority, which meant that the election was decided in the House of Representatives, which would choose among the top three vote-getters in the Electoral College. In the end, Jackson won a major victory with 54.6% of the popular vote, and 219 of the 286 electoral votes. [256] By December, one of the President's advisors, James Alexander Hamilton, remarked that business in New York was "really in very great distress, nay even to the point of General Bankruptcy [sic]". Biddle was eventually forced to relax the bank’s credit policies, and in 1837 the Senate expunged the censure resolution from its record. Most of the state banks that were selected to receive the federal funds had political and financial connections with prominent members of the Jacksonian Party. [10], In 1815, Secretary of State James Monroe told President Madison that a national bank "would attach the commercial part of the community in a much greater degree to the Government [and] interest them in its operations…This is the great desideratum [essential objective] of our system. [251], In the end, Biddle responded to the deposit removal controversy in ways that were both precautionary and vindictive. He has millions of specie in his vaults, at this moment, lying idle, and yet you come to me to save you from breaking. In the end, he believes, the government was deprived of the stabilizing influence of a national bank and instead ended up with inflationary paper currency. [155] After months of debate and strife, pro-B.U.S. [268] The national economy following the withdrawal of the remaining funds from the Bank was booming and the federal government through duty revenues and sale of public lands was able to pay all bills. It succeeded by a vote of 23 to 20, closer than he would have liked. It was undervalued and thus rarely circulated. Throughout 1829, Jackson and his close advisor, William Berkeley Lewis, maintained cordial relations with B.U.S. Benton replied by criticizing the Bank for being corrupt and actively working to influence the 1832 election. [147], The months of delay in reaching a vote on the recharter measure served ultimately to clarify and intensify the issue for the American people. [222] With the crisis over, Jackson could turn his attention back to the Bank. [240][241] On September 18, Lewis asked Jackson what he would do in the event that Congress passed a joint resolution to restore the deposits, Jackson replied, "Why, I would veto it." Not a member, register for a Gilder Lehrman account. Finally, Lawrence told his interrogators that he was a deposed English king—specifically, Richard III, dead since 1485—and that Jackson was his clerk. He presented five state-charted "pet" banks with drafts endorsed by the U.S. Treasury totaling $2.3 million.