Wiki User Answered . Andrew Jackson was vehemently opposed to appointed officials centralizing the control of the supply of money. President Andrew Jackson to John Coffee, February 19, 1832. In 1832, the year before Jackson finally acted, the issue created a deep split in Jackson’s cabinet. All rights reserved. Andrew Jackson opposed the national bank because he thought it was a threat to the traditional ideals with which America was endowed. Two decades later, Congress let the bank's charter lapse. Why did Jackson close the national bank? the indian removal act. "The first, of course, was … It's not even close. Sign up for POLITICO Playbook and get the latest news, every morning — in your inbox. The first Bank of the United States (1791–1811) and the second Bank of the United States (1816–36) had functioned as agents of the U.S. Treasury and competed with the state, or private, banks, thereby ensuring that the private banks redeemed their banknotes at full value. Nicholas Biddle, the director of the bank, fought back. The bank became the focal point of the 1832 presidential election in which Jackson, as the Democratic incumbent, defeated Clay. After congress renewed the bank charter, Jackson vetoed the bill. The first bank (1791-1811), proposed by Alexander Hamilton and the Federalists, aroused opposition, especially from the West, for its conservative policies, which meant it was against inflating the money supply through means of unbacked paper … One of Clay's backers was Nicholas Biddle, who owned and ran the Bank of the United States. One of Clay's backers was Nicholas Biddle, who owned and ran the Bank of the United States. Andrew Jackson "killed" the bank by ordering withdrawals and placing the funds in smaller state banks eventually causing Nicholas Briddle, president of the bank to close the bank. How did Jackson’s Bank War change the United States economy? When its charter officially expired in 1836, it was not renewed. Congress established the First Bank of the United States in 1791 to serve as a repository for Federal funds. Tyler was also opposed to the U.S. Bank, but he perceived this as a terrible abuse of executive power and a … The successor bank that Jackson reviled as an elitist institution tied to Eastern commercial interests was chartered in 1816, five years after the first bank’s charter had expired. he didmd renew the bank lease. ... moved federal government deposits from the national bank … "Jackson had two purposes in ridding the country of debt," wrote John Steele Gordon. state banks chosen by andrew jackson in 1833 to receive deposits of funds removed from the bank of the united states. With his victory, Jackson felt he had won a mandate to close the bank, despite continuing opposition in Congress. Top Answer. President Andrew Jackson faced Henry Clay in the election of 1832. By unilaterally withdrawing the funds, Jackson effectively sealed the bank’s death warrant. The Rechartering of the National Bank In 1832, a Renewal Bill for the United States Bank came up to the President, Andrew Jackson. Jackson’s war against the Second National Bank similarly contributed to the development of the Democratic and Whig Parties. How did Jackson respond to the close of the Bank of the United States? Later in 1832, Jackson vetoed an attempt by Congress to draw up a fresh charter for the bank. The two groups lived in close proximity to one another. Sciences, Culinary Arts and Personal The charter for this national bank ran out five years before the establishment of the Second Bank of the United States, which continued to serve as the federal repository. 2008-11-10 00:53:38 2008-11-10 00:53:38. Who replaced John C. Calhoun as vice president? Jackson rejected this view and subscribed to the view that if the Constitution did not strictly say a power of Congress then Congress did not have that power. What decision was made as a result of the Worcester vs. Georgia Supreme Court case? Materials "Nicholas Biddle and Andrew Jackson in the Case of the Strangled Bank," by K.C. Jackson was determined to pay off the debt in full. In an effort to break up the Second Bank of the United States, Jackson in 1833 made federal deposits in a number of state banks. The Bank of the United States was a national bank created by the U.S. Congress. He then used his executive power to close the account and to put the money in various state banks. Jackson's stubborn skepticism about banks escalated into a highly personal battle between the president of the country and the president of the bank… Compare and contrast Jefferson's democracy with... How did the death of Rachel Jackson impact Andrew... What did Andrew Johnson do when he became... How did Andrew Jackson change American... Why was Andrew Jackson known as the common man? 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