Page 271 - American Stories, A History of the United States

endorsement of the Bank would embarrass or even discredit the president. The bill to
10.1 recharter was introduced in early 1832. Despite Jackson’s opposition, it easily passed.
But Jackson vetoed the bill with ringing statements of principle. After repeating his
opinion that the Bank was unconstitutional, notwithstanding a ruling by the Supreme Court,
10.2 he argued that it violated the fundamental rights of the people in a democratic society.
Jackson thus called on the common people to fight the “monster” corporation.
His veto message was the first to use more than strictly constitutional arguments and

10.3 deal directly with social and economic issues. Attempts to override the veto failed, and
Jackson resolved to take the issue to the people in the upcoming presidential election.
The 1832 election, the first in which national nominating conventions chose the can-
didates, pitted Jackson against Henry Clay, standard-bearer of the National Republicans.
10.4
Although the Democrats did not adopt a formal platform, the party firmly opposed
rechartering the Bank. Clay and the National Republicans attempted to marshal the pro-
Quick Check Bank sentiment that was strong in many parts of the country. But Jackson won a personal
To whom did Jackson turn to for triumph over Clay (see Table 10.2). His share of the popular vote was not as high as in
support in opposing the bank?
1828, but he still interpreted it as a mandate for continuing the war against the Bank.
Killing the Bank

Jackson now resolved to attack the Bank directly by removing federal deposits from
Biddle’s vaults. The Bank had used all the political influence it could muster to prevent
Jackson’s reelection, and Old Hickory regarded Biddle as a personal enemy.
To remove the deposits from the Bank, Jackson had to overcome resistance in his own
cabinet. When one secretary of the treasury refused to support the policy, he was shifted to
another cabinet post. When a second also balked, Roger B. Taney, a Jackson loyalist and
opponent of the Bank, replaced him. In September 1833, Taney, as acting secretary of the
treasury, ceased depositing government money in the Bank and began to withdraw the funds
already there. Although Jackson had suggested that the government keep its money in some
kind of public bank, he had never worked out the details or made a specific proposal to Con-
gress. Instead, the funds were placed in twenty-three state banks. Opponents charged that
these banks had been selected for political rather than fiscal reasons and dubbed them Jack-
son’s “pet banks.” Since Congress refused to regulate the credit policies of these banks, the
way the state banks used the new deposits nullified Jackson’s efforts to shift to a hard-money
economy. They extended credit recklessly and increased the paper money in circulation.
The Bank of the United States counterattacked by calling in outstanding loans
and instituting a policy of credit contraction that helped bring on a recession. Biddle
hoped to show that weakening the Bank would hurt the economy. With justification,
Jacksonians accused Biddle of deliberately and unnecessarily causing distress out of
personal resentment and a desire to maintain his unchecked powers and privileges. The
Bank never regained its charter.
Opposition to Jackson’s fiscal policies grew in Congress. Clay and his supporters
contended that the president had violated the Bank’s charter and exceeded his consti-
tutional authority when he removed the deposits. The Senate approved a motion of
censure. Jacksonians in the House blocked similar action, but the president was fur-
Quick Check ther humiliated when the Senate refused to confirm Taney as secretary of the treasury.
What did Jackson do to “kill the (Jackson later named him chief justice of the Supreme Court.) Congressmen who had
bank”?
defended Jackson’s veto now thought he had abused the powers of his office.

TABle 10.2 THe eleCTiON Of 1832
Candidate Party Popular vote electoral vote
Jackson Democratic 688,242 219
Clay National Republican 473,462 49
Wirt Anti-Masonic 101,051 7
floyd independent * 11

238 *electors chosen by South Carolina legislature.