Jackson vs. 2nd National
Bank
The Second Bank of the U.S., established in 1816, was
the federal government’s financial agent--making loans,
stabilizing banking, and printing currency
*Congress supervised the bank
*Southern farmers felt the bank favored the wealthy,
northern, manufacturing elite
*Jackson felt the bank went beyond the powers of
congress and was unconstitutional
*President Jackson nicknamed it “The Monster”
McCulloch vs. Maryland- the supreme court
ruled that the bank was constitutional
*Bank Director Biddle excitedly asked for a new
20 year charter after hearing the court’s ruling
Veto- Jackson ignores the supreme court’s
ruling, and vetoes the bank charter, vowing, “I
will kill it!”
“Pet Banks”- Jackson moved the nation’s
funds to several state banks around the
country- this action, along with severe
inflation, caused the Panic of 1837- an
economic depression