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What reasons did Jackson have for wanting to destroy the Second Bank of the United States?
2 answers
The national bank had become a political entity. In those days it made personal loans and it would curry favor by making attractive loans to certain Congressmen. It gave favorable treatment to businesses in the East and did little to help the farmers in the West.
One big problem with the Bank stemmed from the fact that the US Treasurer was required to deposit all US funds in this bank. Therefore the bank could lend out money without having to keep the reserves needed by private banks. It had the power to appreciably increase the money supply and inflate the currency as the federal reserve does today, but without the control of the President and Congress.
Is this a proper answer?
One big problem with the Bank stemmed from the fact that the US Treasurer was required to deposit all US funds in this bank. Therefore the bank could lend out money without having to keep the reserves needed by private banks. It had the power to appreciably increase the money supply and inflate the currency as the federal reserve does today, but without the control of the President and Congress.
Is this a proper answer?