Bank War is a label that is used to identify a political struggle in the early 1830’s over the American banking system between Andrew Jackson (democrat) and his (republican) opponents, Henry Clay and Daniel Webster. It is called a war because it played out in public social circles between Jackson, who represented the average working American and the wealthy elite who moved money at whim in order to control capitalist markets.
When the monetary think tanks developed a way to legalize chartering of these banking systems, President Jackson vetoed them. In response the wealthy businessmen withdrew funding that caused financial hardships. One hardship was President Jackson’s support for campaigning and the other was against banks loaning money. This problem spurred an economic down turn in society.
The war was not a personal jab but rather about power. It was about controlling the power of money by regulation. This new idea for regulating financial power tested the newly formed constitution that allowed people the freedom to form their own destiny.
The over all problem was the balance of the power. If it was tipped too far on the federal system side, the government was deemed a controlling monopoly. If the balance was in favor of the citizenry, money monopolization could be done by outside (foreign) investors which could threaten the country’s financially stability.
The bank war fizzled but not the problems would keep plaguing American monetary system for years to come. Proper regulation was indeed needed to regulate the flow of money exchange; to keep proper balance. This problem continues today as many try to find a way to offer everyone the same opportunity to accomplish ones own destiny. The balance always tips in either side’s favor, the government or private enterprise without finding a medium that will meet the needs of everyone involved.