APRIL 4, 1834 – US HOUSE OF REPRESENTATIVES VOTES AGAINST RECHARTERING THE SECOND BANK OF THE UNITED STATES

1834 – US HOUSE OF REPRESENTATIVES VOTES AGAINST RECHARTERING THE SECOND BANK OF THE UNITED STATES
The US House voted 134-82 against rechartering (re-licensing) the nation’s central bank – a private bank not ultimately accountable to the public but to its shareholders. Charters were originally considered democratic instruments of public control to keep corporations accountable – as opposed to today where charters are issued automatically as long as minimal conditions are met and a fee is paid. The bank had established loan policies that were detrimental to the nation’s economy but very profitable for its owners. The bank’s President, Nicholas Biddle, had threatened to harm the US economy by restricting the nation’s money supply if the charter were not renewed. The bank shrank the money supply. A financial panic and deep depression followed. President Andrew Jackson was convinced all the more that the private bank should not be in charge of issuing and circulating the nation’s money supply.