The Disagreement between Nicholas Biddle and President Jackson
Background
The Second Bank of the United States was a key institution during the early days of the United States. However, a major disagreement arose between President Andrew Jackson and the bank's president, Nicholas Biddle, leading to a significant confrontation.
Disagreement between Biddle and Jackson
President Jackson believed that the Second Bank of the United States was an institution that served the interests of the wealthy elite at the expense of ordinary citizens. He was also suspicious of bank speculation and the influence it wielded in political matters. When Jackson proposed changes to the bank in his annual address to Congress, Biddle strongly opposed these changes.
President Jackson's Actions
Despite Jackson's efforts to reform the bank, Congress did not agree with his proposals. In response, Jackson vetoed a bill aimed at renewing the bank's charter, which was a significant move in American history. Jackson accused the bank of monopolizing benefits, interfering in elections, and benefiting foreign investors at the expense of American taxpayers.
Biddle's Reaction
Nicholas Biddle, the president of the Second Bank, was appalled by Jackson's actions. He viewed Jackson's veto as an attack on the stability of the country's financial system and likened it to acts of anarchy during the French Revolution. In retaliation, Biddle restricted loans, discounts, and obligations within the banking system, leading to a nationwide recession.
The Aftermath
The disagreement between Nicholas Biddle and President Jackson had far-reaching consequences. It highlighted the tension between government control and financial interests in the United States. Jackson's actions against the Second Bank of the United States ultimately contributed to the bank's demise and shaped the country's financial policies for years to come.
What was the disagreement between Nicholas Biddle and President Jackson? How did Biddle react to President Jackson's actions? Jackson was re-elected as president, defeating Henry Clay. One of the main topics of the campaign was the re-registration of the Second Bank of the United States, which arose when the president in his first annual address to Congress asked for changes in the work of this bank. The bank, headquartered in Philadelphia, with 26 branches across the country, was run by a board of 25 directors, five of whom were appointed by the government and the rest were elected by shareholders, but in fact, the bank was run by its president, Nicholas Biddle, an educated and intelligent man from a wealthy family who held a high position in Philadelphia society. Congress did not pay attention to the president’s appeal, since his assertion that the bank could not provide the country with a stable credit system and currency was untrue. However, the reason for Jackson’s prejudice laid rather in his distrust of bank speculation and paper money, based on the hard experience he had in his youth, almost getting into a debt prison. In addition, he recently noticed that the Second Bank uses its influence and means to organize the election of people who are loyal to the bank and are ready to support its interests. In addition, the president, committed to the idea of the sovereignty of the people, believed that the bank serves the interests of the rich at the expense of ordinary citizens. The appropriate act on the Bank was submitted to Congress in January 1832 and passed both houses in July, but on July 10 Jackson vetoed it, and it was one of the most significant presidential vetoes in American history. Thus, he introduced new grounds on which the president could reject the bill. The President argued that the existing charter provides monopoly benefits to the bank, which by law should act as an impartial intermediary in the interests of all classes. He also accused the Second Bank of interfering in the elections, in that, by giving certain candidates advantages, it manipulated the democratic system. In addition, some of its investors were foreigners and enriched at the expense of American taxpayers. Bank supporters were horrified. This is a "manifesto of anarchy," said Nicholas Biddle, "as Marat and Robespierre did at the request of the crowd" during the French Revolution. The administration took from the Second Bank the funds it needed to exercise its powers, and kept new revenues in separate state-owned banks. In retaliation, Biddle ordered to limit the issuance of loans throughout the banking system, refused to increase discounts, and reduced the deadline for fulfilling obligations on discount bills to 90 days. Biddle’s actions in the winter of 1833/34 triggered a nationwide recession.