Could deposit its funds and the govt owned one fifth

This preview shows page 5 - 6 out of 8 pages.

could deposit its funds, and the govt owned one fifth of the Bank’s stock; Nicholas Biddle, who served as president of the Bank, has done much to the institution, but Jackson disliked it -Opposition to the Bank came from the soft money and hard money faction; soft money people wanted more money in circulation, and believed that issuing bank notes unsupported by metals; they consisted of state bankers, and believed that the Bank of the US restrained the state banks from issuing notes freely; hard money people believed that gold and silver were the only basis for money, condemning all banks that issue bank notes -Jackson supported the hard money position, after the Panic of 1797 killed his business; as president he was also sensitive to complaints of soft money supporters, so he made it clear he does not favor renewing the soon to expire charter of the Bank of US -Biddle began granting financial favors to men who might help preserve the Bank, turning especially to Webster; he was named the Bank’s legal counsel and director of its Boston Branch, helping win support from other figures -Advisers persuaded Biddle to apply to Congress a bill to renew the Bank’s charter, four years before the expiration; this allowed the Bank to become a major issue in the national elections; Congress passed the recharter bill, Jackson vetoed it -Clay ran for president as a National Republican; Jackson overwhelmingly defeated Clay The Monster Destroyed -Jackson tried to weaken the bank by removing govt deposits from the Bank, which would possibly destabilize the financial system, so the secretary of treasury refused to give the order; Jackson fired him and appointed a new one, but he also balked; the third was Attorney General Robert B Taney, who placed deposits in a number of state banks instead of the Bank of the US -Nicholas Biddle called in loans and raised interest rates, ; he hoped this would cause a recession that would persuade congress to recharter the Bank -Bank supporters organized meetings to urge the recharter of the Bank, blaming Jackson for the recession; Jacksonians blamed the recession on Biddle -Biddle contracted cred too far even for his allies, causing protest that caused Biddle to grant credit in abundance, ending chances of winning a recharter -The death of the Bank led to a loss of a valuable financial institution, fragmenting the banking system of the US The Taney Court -After the Bank war, Jackson moved against the Supreme Court; when John Marshall died, the president appointed the new chief justice Roger B Taney; he did not stop constitutional interpretation but he modified Marshall's vigorous nationalism -In Charles River bridge v Warren Bridge, two Massachusetts companies fought over the right to build a bridge across the Charles River between Boston and Cambridge; one had a long standing charter form the state, but another had applied to the legislature for authorization to construct a second competing bridge that would reduce the value of the first charter -The first company contended that granting the second charter would breach contract, and cited

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture