Andrew Jackson Bank Wars Analysis

On september 10th 1883 , president Andrew Jackson decided shut down all of the second national banks. In addition to that he was also able to use all of his executive power to remove all federal funds from the bank. And this was the beginning of a new dispute known as the Bank Wars. According to Tthe thhe bank Bank wars is a reference to the political struggle that developed over the issue of recharting the second bank during Andrew Jackson’s Administration. These steps of actions taken by the President of the U.S himself will have severe consequences that will not only affect the American citizens negatively but the economic system as well.
The first national bank was created by George Washington and Alexander Hamilton in 1791. The bank’s
purpose was to serve as a central repository for federal funds. Later on the second bank of the United States of America was established in 1816, whcih wthis was aproximately five years after the first bank‘s charter had expired.The bank had been run by the boards of directors with ties to industry and manufactering, therefore was biased towrd the urban and industrial northern states.Do to do this fact Jackson objected to the bank’s unusual political and economic power and to the lack of congressional oversight over its business dealings. This led to multiple outcomes such as the panic of 1837, which was a financial crisis in the United States that lasted until the mid 1840s. During this time of difficulties profit prices, wages went down and unemployment went up..

In addition to causing the panic of 1837, Jackson’s actions also caused a change in the American political party system. Not only did the bank war affect America economically, but also politically. According to John Mack The events of the Bank War made Andrew Jackson's opponents absolutely furious, causing them to form a new party; the Whigs. As a result the The Second American Political Party System was called into effect. Now this new party known as the Whigs favored a strong national government and a social reform. During that time in America there were two political parties, democrats and the Whigs. John also mentions that the outcome of the bank war had a big influence on the country , especially the Presidency of Martin Van Buren. Jackson's killing of the Second National Bank killed the American economy, as seen in the Panic of 1837, but his actions also incited the development of a two party political system.
Although the shutdown of banks cause a major crisis in society, ut for some people it was extremely beneficial.
During the economic boom that occurred after the killing of the second national bank, many banks impulsively gave away loans due to the state bank’s new charter. This resulted in the increase of cotton production in the South, and an enormous expansion of land in the West.There was also a boom in the industry in the north. For this reason there was an increase in sales and price of land, which were mainly paid with bank notes. Unfortunately with this prosperity came inflation. President Jackson became very anxious of this inflation and instead of taking responsibility he blamed the people and the escalated use of paper and bank notes. So he issued the Specie Circular, which stipulated that only gold or silver could be used as payment for public land. John also states that with many loans and payment in bank notes, state banks were reduced to calling in all of their loans and depositors had to withdraw all of their funds. While all of this stuff was a occurring in the united states, Britain had problems of their own and were facing recession. This forced Britain to call nin all of their American loans. As you can see the Americans received one problem after another. This was the creation of the calamity known as the Panic of 1837. To put this in short terms, this immense recession lasted six years and eight hundred banks were suspended for business. Throughout
these years there came about ah enormous unemployment rate nationwide. This also ruined Martin Van Buren's Presidential tenure. As president, Jackson did nothing to support his people through this crisis, which made the American people to become skeptical in participating ih the economy.
In the end Jackson had finally succeed in destroying the bank and its charter would officially expire 1836.
For the Americans, this was their cue that represented the victory of President Jackson. This meaht that Jackson won the bank war. The defeat of the bank war was extremely unfortunate for the people, but it was affluent for Jackson because he would finally achieve his goal. As one already know victory and glory does not last forever and that’s exactly what happened to the president. According to the history channel he was not able to enjoy his success for a long time because in the year of 1834, Congress censured Jackson for what they viewed as his abuse of presidential power during the Bank War. It was about time considering that he was the one who cause this major this major bank crisis in the first place. Andrew Jackson might have been removed from his position as president, but that didn’t exactly change the fact that America went through a bank crisis, which nearly destroyed the economy and will need a strong, intelligent leader to assist them in rebuilding their economy into a more stable one. And that man was Martin Van
Buren