Why did Andrew Jackson oppose the Bank of the United States?

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Answer:
The problem with the Second Bank of the United States stemmed from the fact that the US Treasurer was required to deposit US funds in this bank. Consequently the bank was not subject to the restraints of private banks. It could engage in unsafe banking practices without any fear that depositors would question the soundness of the bank and withdraw their money. It could make unsafe loans and even loan out more money than it had on deposit.

The bank was a part of the Eastern establishment to which the first six presidents belonged. It focused on helping the established businesses and did little for farmers and laborers in the Western part of the US. Moreover, after Jackson almost won the presidency in 1824, the bank became an arm of the anti-Jackson party , lobbying Congressmen with low interest loans.

Jackson's veto message for the bill to re-charter the bank (written by George Bancroft), listed the following objections against the bank:
  • it was unconstitutional - Congress did not have the authority to create such a bank
  • it concentrated an excessive amount of the nation's financial strength into a single institution
  • it exposed the government to control by "foreign interests"
  • it exercised too much control over members of the Congress
  • it favored Northeastern states over Southern and Western states






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First answer by Jphelm. Last edit by Ranger22. Contributor trust: 4846 [recommend contributorrecommended]. Question popularity: 41 [recommend question].

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