Lesson 7.09: Jackson and the Bank War

Following successful completion of this lesson, students will be able to:

Explain the rationale for the Second Bank of the United States.
Describe the reasons why the Second Bank of the United States became unpopular in some regions of the country.
Explain the ensuing Bank War and Jackson's reasons for choosing not to renew the Bank.
Identify the effects Jackson's decision for non-renewal of the Bank had on the country.

The above objectives correspond with the following Alabama Course of Study Objectives: V EIdentify key cases that helped shape the United States Supreme Court, including Marbury versus Madison, McCullough versus Maryland, and Cherokee Nation versus Georgia. , and IX3Describing the tariff debate and the nullification crisis

Andrew Jackson

Introduction

After the division on the tariff issue, another controversy involving monetary matters arose late in Jackson's first term when his chief challenger in the 1832 election, Henry Clay, attempted to force Jackson to make a decision regarding the renewal of the Second Bank of the United States. As expected, Jackson vetoed the renewal; thereby; dooming the Bank for failure upon its expiration in 1836. Though praised by Southern and Western supporters for the action, the decision cost Jackson valuable support in the Northeast which supported the tariff. It also led to an eventual recession and other financial difficulties.