JACKSONIAN DEMOCRACY 1825 1850
PRESIDENT ANDREW JACKSON
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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He kept placing tariff monies into the National Bank
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He fired the president of the bank whom he did not care for
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He started depositing funds from tariffs and taxes into state banks instead
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He thought the National Bank was only helping the elites of society
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Detailed explanation-1: -In September 1833, he issued an executive order to the Secretary of the Treasury to take all of the federal funds out of the BUS, and deposit them into 23 state banks that were friendly to his administration. These banks were called pet banks .
Detailed explanation-2: -He “killed” the National Bank by removing all federal funds and placing them in “pet banks.” This combined with rampant speculation in western lands ended up destabilizing the banking system so much so that in 1836, Jackson ordered that western land could only be paid for in gold or silver.
Detailed explanation-3: -Jackson’s opponents ridiculed these “pet banks” as a source of corruption, but to no avail. The removal of the government’s deposits crippled the federal bank, and it dissolved in 1836. The next year, another financial panic, the Panic of 1837, swept the country.