The first and second Bank of the U.S. fell into the hands of political turmoil. The politicians supported the private banking despised a central banking institution. The idea of having a central bank that would control the finances and lending nationwide fueled national debate. Many believed the Bank of the United States was a petri dish of corruption and government control. One could easily take sides with the people who were opposed to the Bank of the United States, yet the necessity for a national bank was demonstrated by inflation, corruption, and economic hardships.
The B.U.S. debate
The first Bank of the United States expired in 1811 and the country had no uniformity in the banking. State run banks and private financial institutions …show more content…
By defying orders and fighting for what he believed is right became close to heart with the American public. He was viewed as a “man’s man” among the small farmers. They loved what he stood for and the farmers believed Jackson held their interested to heart. Jackson apposed the national bank and therefore gained the support of the small bankers and debtors. Jackson was further supported by the expansion of voting rights, more colored men and under privileged members of society were granted permission to …show more content…
The bank war was Jacksons fight to abolish the Second Bank of the United States (SBUS)and have the state banks take control. Jackson was in over his head, shortly after he abolished the SBUS there was a financial catastrophe. State banks wanted to increase their liabilities without increasing their reserves but were held back by the SBUS. Without the SBUS to prevent the over lending, the state banks indulged their desires and increased their liabilities at the cost of lower reserve ratios (Temin, 1968). Simply stated, the state banks were printing their own money, lending money they did not have in reserves, therefore facilitating inflation resulting in financial
The B.U.S. debate
The first Bank of the United States expired in 1811 and the country had no uniformity in the banking. State run banks and private financial institutions …show more content…
By defying orders and fighting for what he believed is right became close to heart with the American public. He was viewed as a “man’s man” among the small farmers. They loved what he stood for and the farmers believed Jackson held their interested to heart. Jackson apposed the national bank and therefore gained the support of the small bankers and debtors. Jackson was further supported by the expansion of voting rights, more colored men and under privileged members of society were granted permission to …show more content…
The bank war was Jacksons fight to abolish the Second Bank of the United States (SBUS)and have the state banks take control. Jackson was in over his head, shortly after he abolished the SBUS there was a financial catastrophe. State banks wanted to increase their liabilities without increasing their reserves but were held back by the SBUS. Without the SBUS to prevent the over lending, the state banks indulged their desires and increased their liabilities at the cost of lower reserve ratios (Temin, 1968). Simply stated, the state banks were printing their own money, lending money they did not have in reserves, therefore facilitating inflation resulting in financial