Bank War Essay Research Paper Did the
Bank War Essay, Research Paper
Did the Bank War cause the Panic of 1837? Richard Hofstadter from The American Political Tradition and the Work force
Who Made It believes President Andrew Jackson? s refusal to recharter the Bank of the United States was politically
popular but economically harmful to the long-run growing of the United States. Peter Tenim, from The Jacksonian
Economy, believes international factors, such as alterations in the pecuniary policies of the Bank of England, the
supply of Ag from Mexico, and the monetary value of southern cotton, were far more of import than Jackson? s banking
policies in finding fluctuations in the 1830s economic system. The two intelligent work forces present their facts and statements
good and do it difficult for the reader to model their sentiment for either side. After reading both statements and
exhaustively reexamining the facts stated, I took the side of Peter Tenim by stating that the war against the Bank of the
United States was non the cause of the Panic of 1837.
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I have to hold with Mr. Tenim merely because there were more factors present in his sentiment affecting the Panic of
1837. The sentiment of Mr. Hofstadter revolved around one factor, which was the war against the Bank of the United
States. In order to somewhat confute Mr. Hofstadter? s theory, I believe we have to analyse the relationship between
President Andrew Jackson and Nicholas Biddle, who at the clip was the President of the Bank. Mr. Jackson was
really much a adult male of the in-between category. He believed in the American dream of going an enterpriser and the
chance to make wealth for oneself. He disliked the inexpensive and sometimes-worthless paper money the Bankss
printed. The lone money he trusted was difficult money, gold and Ag. He was particularly acrimonious against the Bank of
the United States, which with its monopoly of the authorities? s concern was a symbol of all hated particular privilege.
He thought it was evil every bit good as unconstitutional, and he loathed it. More impo!
rtantly though, he was a individual who had experience utilizing the alleged capital shapers of the clip and seeking to get down
concerns. For illustration, the one clip in his calling President Jackson owned land, which he sold to assorted
single and standard notes as payments. Unfortunately, these purchasers were unable to pay back the notes and
President Jackson lost his land. He so had to get down from abrasion. He besides had become a debitor and due to fiscal
adversities, he was unable to pay off his ain debts. President Jackson was faced with a double-sided blade because
people were unable to refund the debts owed to him, while at the same clip he could non pay the debts he owed to
others. Nicholas Biddle, on the other manus, was an wholly different adult male. Biddle knew how Jackson felt about the
Bank but wanted the President to be on good footings with it. Henry Clay, though, saw the Bank issue as a manner to
licking Jackson in the 1832 election. Clay induced Biddle to use for a new charte!
R for the Bank early in 1832. He believed that if Jackson dared to blackball the recharter measure, he would lose the election.
The program did non travel harmonizing for Mr. Clay and Mr. Biddle and Jackson was still the favourite among the people.
President Jackson and Nicholas Biddle were ne’er met good footings with each other and their relationship was one of
statement and dissension. In my sentiment, Biddle wanted to maintain the Bank of the United States intact for the sole
intent of profiting the blue bloods and the politically involved. Biddle was non, though, the cause of the Panic of
1837. The depression of the early 1840s was neither every bit serious as historiographers assume nor the mistake of Biddle. It was
chiefly a deflation, as opposed to a diminution in production, and it was produced by events over which Biddle had
small control over.
Mr. Jackson? s position of Bankss was a really straitening one. He, along with the people of his party, believed the same
political orientation that the Bankss were in favour of the wealthy and those with political advantage. The lone people who
benefited from the Bankss were the? wall-street? types and people who had a instead great influence in the political
sphere. I believe that President Jackson wanted to de-centralize the bank and do it into a more province degree. While
Biddle was a major force behind the powerful Bank of the Uni
ted States going more centralised. Equally far as I can
see, the Bank War was fundamentally summed up in the undermentioned inquiry. Should the United States Bank act as male monarch
over the smaller Bankss? This was a really political argument and I believe it aided in the Panic of 1837, but was non the
During these times, there was a great? roar? period. Farmers and trade people were looking frontward to doing
their ain concerns and sharing in the wealth available. With industrialisation taking topographic point, economic growing in the
United States was at an all clip high. This roar was one of the largest manufacturers of the Panic of 1837. It resulted
from a combination of big capital imports from England a alteration in the Chinese desire for Ag, which together
produced a rapid addition in the measure of Ag in the United States. Banks did non spread out their operations
because they were handling the authorities sedimentations as militias. They expanded because their coinage militias had
risen. The Panic of 1837 was non caused by President Jackson? s actions. The devastation of the Bank of the United
States did non bring forth the crisis because it did non bring forth the roar.
Many sentiments on the topic of the Bank War have been used and quoted but none every bit frequently as those of Nicholas
Biddle and Albert Gallatin. Biddle is quoted on stating: ? In my judgement, the chief cause of it ( the crisis ) is the
misdirection of the gross. Mismanagement in two respects: the manner of put to deathing the distribution jurisprudence, and
the order necessitating coinage for the public lands. ? Gallatin took another route by denoting? Overtrading has been the
primary cause of the present crisis in America. ? The two did non hold with each other nor did they believe of each
other? s sentiments.
I believe that international factors were the chief cause of the Panic of 1837. The Bank War coincided with two
developments, one in England and one in China that together produced rising prices. A big series of good crops in
England initiated a roar in the state around 1832. The British became eager to put in the United States and to
purchase American cotton. In order for the British to export capital to the United States, the United States had to purchase
more in Britain than it sold, which would ensue in a trade shortage. And in order for the American demand for British
goods to lift, monetary values in the United States had to lift to do imported goods cheaper than domestically produced
1s. The demand for cotton in Britain caused monetary values in America to lift higher than they would hold. At the same
clip, American exports were increasing every bit were American imports, hence a trade shortage was harder to bring forth.
Aboard this job, alterations were taking topographic point in China. Opium P!
urchases were increasing and no longer wanted Ag to stash. They wanted to merchandise Ag for opium and any Ag
sent by the United States would so be sent to England in payment for Indian opium. This transshipment was
avoided by replacing American recognition for Mexican Ag. The Ag from Mexico went into bank militias in
America, leting monetary values to lift and the demand for imports to increase. The concluding international job I will
discuss is the British demand for our cotton. This demand helped to increase the rising prices by cut downing the American
trade shortage, but it besides put down the rising prices by puting off a land roar. The monetary value of cotton soared, land gross revenues rose
dramatically and portion of the addition in money supply went into land purchases. The authorities continued to sell
land at a changeless monetary value, and financess that otherwise would hold been used to raise monetary values merely stayed in the
authorities? s excess. The roar caused rising prices to run rampant and the American!
economic system was get downing to give manner to a terror.
Blaming the Panic of 1837 on President Jackson is an nescient statement. How can anyone state that this lone factor
caused a immense economic failure in the United States? This terror had to hold been brought on by multiple factors of
an international degree. Our trade spouses at the clip all contributed to the ruin of our economic system. President
Jackson? s determination could hold been another factor taking into a terror, but in no manner was it the lone ground for the
economic jobs that plagued the American people for old ages