Andrew Jackson
Removal of deposits and censure

Jackson saw his victory as a mandate to continue his war on the Bank's control over the national economy. In 1833, Jackson signed an executive order ending the deposit of Treasury receipts in the bank. When Secretary of the Treasury McLane refused to execute the order, Jackson replaced him with William J. Duane, who also refused. Jackson then appointed Roger B. Taney as acting secretary, who implemented Jackson's policy. With the loss of federal deposits, the Bank had to contract its credit. Biddle used this contraction to create an economic downturn in an attempt to get Jackson to compromise. Biddle wrote, "Nothing but the evidence of suffering abroad will produce any effect in Congress." The attempt did not succeed: the economy recovered and Biddle was blamed for the recession.

Jackson's actions led those who disagreed with him to form the Whig Party. They claimed to oppose Jackson's expansion of executive power, calling him " King Andrew the First ", and naming their party after the English Whigs who opposed the British monarchy in the 17th century. In March 1834, the Senate censured Jackson for inappropriately taking authority for the Treasury Department when it was the responsibility of Congress and refused to confirm Taney's appointment as secretary of the treasury. In April, however, the House declared that the bank should not be rechartered. By July 1836, the Bank no longer held any federal deposits.

Jackson had Federal funds deposited into state banks friendly to the administration's policies, which critics called pet banks. The number of these state banks more than doubled during Jackson's administration, and investment patterns changed. The Bank, which had been the federal government's fiscal agent, invested heavily in trade and financed interregional and international trade. State banks were more responsive to state governments and invested heavily in land development, land speculation, and state public works projects. In spite of the efforts of Taney's successor, Levi Woodbury, to control them, the pet banks expanded their loans, helping to create a speculative boom in the final years of Jackson's administration.

In January 1835, Jackson paid off the national debt, the only time in U.S. history that it had been accomplished. It was paid down through tariff revenues, carefully managing federal funding of internal improvements like roads and canals, and the sale of public lands. Between 1834 and 1836, the government had an unprecedented spike in land sales: At its peak in 1836, the profits from land sales were eight to twelve times higher than a typical year. During Jackson's presidency, 63 million acres of public land—about the size of the state of Oklahoma—was sold. After Jackson's term expired in 1837, a Democrat-majority Senate expunged Jackson's censure.
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