Bank War Essay Research Paper Did the free essay sample

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. 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 neer 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 primary cause. 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