The History Between Andrew Jackson and the Central Bank Applies to Modern Times Because the Federal Reserve is Exactly the Central Bank Jackson Fought Against.

Andrew Jackson, the seventh President of the United States, served the office of President from 1829 to 1837.

During this time, the Second Bank of the United States was in effect, having received a 20-year charter in 1816.

This central bank for the United States was privately owned for its entire history, which ended in 1836 when its original charter expired and President Jackson vetoed its charter renewal.

Andrew Jackson felt the central bank needed to be abolished for many reasons.

First, the central bank placed the wealth of the nation into a single institution. Second, the central bank exposed the United States government to the potential control of foreign interests through investment.

Third, Jackson recognized that the central bank mostly served to feed the interests of the small group of wealthy elites who owned the bank.

Fourth, by controlling funding, the central bank controlled Congress and the law to an unhealthy degree.

Fifth, the central bank appeared to favor northeastern states over southern or western states.

Although the conflict between Andrew Jackson and the central bank is well documented, America’s current economic status shows people did not learn effectively from history.

Results of the Fight

The conflicts between Andrew Jackson and the central bank ended when Jackson won reelection to the presidency in 1832 and withdrew federal funds from the central bank.

During his second term in office, Jackson became the only president to pay off the national debt. This occurred in 1885.

When Jackson withdrew federal money from the central bank, he moved to place the money into numerous state and local banks.

These banks were issuing legal tender that was no longer backed by hard currency, such as gold coin.

The rapid rise of inflation due to the banks pumping cash into the financial system prompted Jackson to mandate that people who bought government land would have to pay the government in gold or silver coins.

After the demand for gold and silver coins skyrocketed, banks no longer had enough gold or silver to exchange for buyers’ cash.

The ensuing bank run led to the Panic of 1837, which began a long period of economic depression in the United States.

In 1834, the Senate censured Andrew Jackson for his decision to shut down the national bank. Jackson was the first and only President to be censured.

The country took years to climb out of the effects of the Panic of 1837. The censure made it easier for the banking elite to reinstate a central bank later on.

Applications to Modern Times

Today, the central bank of the United States is the Federal Reserve. While many ask is DTSS legit? Not many ask if the FRS is legit?

This privately owned bank lends money to the government and prints fiat money, just as the Second Bank of the United States did in Andrew Jackson’s day.

Jackson’s objections to the central bank at that time still apply today. Comparing Andrew Jackson and the central bank to Barack Obama and the Federal Reserve is not easy.

It is clear, however, that the current president does not oppose the central bank as Jackson did.

In fact, Obama was put in office by the very people who own the Fed and they control what he does.

Perhaps the modern equivalent to Andrew Jackson and the central bank would be Ron Paul and the Federal Reserve.

Paul’s outspoken criticisms of the actions of the Federal Reserve inspire a great deal of debate.

Today’s bank monster is huge.  Instead of a national debt that is paid off, the country owes trillions of dollars, and no end is in sight for its spiraling debt.

Looking at what happened to the country after Andrew Jackson shut down the central bank can paint a scary picture about what may happen if we abolish the Federal Reserve, but the reasons for doing so are more valid than ever.

We must shut the Fed down.