Chapter 10 Part 2 Flashcards
Bank characteristics
Held government money
Issued printed money
Controlled gov. money supply
Gold standard
$1 gold=$1 Bill
Jacksons view on the bank
Hated it because he thought it gave too much power to the wealthy
What did banks need in order to work
Charter
When did the banks charter end? When did biddle want to get it re chartered
Ended in 1836, but biddle wanted to get it rechartered in 1832(election year)
Why did biddle force the recharter of the bank in 1832
He thought Jackson would not fight it because it was an election year
After congress passed the bill to extend the charter of the bank, what did Jackson do
Vetoed it claiming it to be unconstitutional. Supreme Court said it was constitution
Who was running in the election of 1832
Clay( national republican)
Jackson
Issue in the election of 1832
National bank. Jackson wins the election easily which makes him believe that he has the right to destroy the national bank
In 1832, Jackson tried to destroy the bank before the charter ended in 1836. What did he do?
•removed money from the national government and put it in state banks. •biddle responded by making it hard to borrow money, but eventually the national bank closed.
Effects of destroying the bank
States began to print paper money. They printed too much causing inflammation. •1836, van buren becomes president
What is inflammation
When money becomes less valuable and prices of goods increased
Panic of 1837
Due to inflammation and lack of confidence in the economy, the US went into a panic. This caused depression (severe economic slope).
Worried that their money would be worthless, people took their cash to banks to trade it for gold. Eventually the banks ran out of money and shut down
Results of the panic of 1837
•90% of factories went out of business. •people went hungry and becomes homeless. • farmers were least hurt (could grow own food)
Why did the panic of 1837 destroy van burens chance of another term
He refused to help the economy and the people wanted someone who would
