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In 1833, Jackson retaliated against the bank by removing federal government deposits and placing them in "pet" state banks.

As federal revenue from land sales soared, Jackson saw the opportunity to fulfill his dream of paying off the national debt - which he did in early 1835.

In 1811,..Madison administration, goaded by Secretary of the Treasury Gallatin, supported it....

In Congress, a coalition of Republican southerners and westerners, seeing the bank as an instrument for economic development in their respective regions led the recharter effort." However, the effort fell short in the House. Wood noted that "the more important enemies of the BUS were the state banks.

Two months later, New York City banks suspended specie payments. Van Buren - under pressure from his mentor Jackson - decided not to suspend the Specie Circular.

Led by Henry Clay, they opposed the Bank of the United States because its regulatory hand got in the way of state banks and because its dominance of U. government deposits kept those deposits out of state bank vaults." The War of 1812 upended the long political split in the country regarding the bank.

The conflict regarding national economic policy, begun in the 1790s between followers of Alexander Hamilton and Thomas Jefferson, continued.

Leading up to the 1812 war, noted financial historian Susan Hoffman, one "group of agrarians, `unreformed' or `unreconstructed' Jeffersonians, opposed recharter of the Bank of the United States because they continued to oppose all banking on philosophical grounds.

The Bank of the United States was dead." It was an economically and politically shortsighted act.

Gordon noted that "many of the men who voted to kill the bank were the very same men who advocated war - the most expensive of all public policies - with one of the strongest military powers on earth.


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  2. The War of 1812 would soon demonstrate the clear need for a government bank to help fund growing government expenses not covered by the nation's limited tariff revenue. Such revenue was. Future President Andrew Jackson himself had reason to complain about the impact of the Panic of 1819. During this period.

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