"Andrew Jackson abolishing the Central Bank threw us into a depression"

[tnvoter]

A friend swears by this.. I'm trying to find an easy way to explain it to him, obviously wiki-washed.

Any assistance?

"Following Jefferson, Jackson supported an "agricultural republic" and felt the Bank improved the fortunes of an "elite circle" of commercial and industrial entrepreneurs at the expense of farmers and laborers. After a titanic struggle, Jackson succeeded in destroying the Bank by vetoing its 1832 re-charter by Congress and by withdrawing U.S. funds in 1833.
1833 Democratic cartoon shows Jackson destroying the devil's Bank

The bank's money-lending functions were taken over by the legions of local and state banks that sprang up. This fed an expansion of credit and speculation. At first, as Jackson withdrew money from the Bank to invest it in other banks, land sales, canal construction, cotton production, and manufacturing boomed.[25] However, due to the practice of banks issuing paper banknotes that were not backed by gold or silver reserves, there was soon rapid inflation and mounting state debts.[26] Then, in 1836, Jackson issued the Specie Circular, which required buyers of government lands to pay in "specie" (gold or silver coins). The result was a great demand for specie, which many banks did not have enough of to exchange for their notes. These banks collapsed.[25] This was a direct cause of the Panic of 1837, which threw the national economy into a deep depression. It took years for the economy to recover from the damage.

His senate then went on to censure him for removing the funds from the Bank of the United States. Another fun fact. "

[Xenophage]

First I've heard of it but after my own wiki-research this is what I found:

"The bank's money-lending functions were taken over by the legions of local and state banks that sprang up. This fed an expansion of credit and speculation. At first, as Jackson withdrew money from the Bank to invest it in other banks, land sales, canal construction, cotton production, and manufacturing boomed.[25] However, due to the practice of banks issuing paper banknotes that were not backed by gold or silver reserves, there was soon rapid inflation and mounting state debts.[26] Then, in 1836, Jackson issued the Specie Circular, which required buyers of government lands to pay in "specie" (gold or silver coins). The result was a great demand for specie, which many banks did not have enough of to exchange for their notes. These banks collapsed.[25] This was a direct cause of the Panic of 1837, which threw the national economy into a deep depression. It took years for the economy to recover from the damage."

[Xenophage]

So, banks were issuing more paper money than they had gold reserves available... and there was a run on the banks?

[tremendoustie]

In other news, a "doctor's" radiation treatment to try to kill a patient's cancer made their hair fall out. Thus conclusively showing that cancer is a great way to stay healthy. It is expected that the quack promoting radiation treatment will be booted forthwith, and a massive asbestos inhaler distribution program will be rolled out as soon as possible.

[emazur]

He may have gotten his information from this 6 page central banking propaganda article in American History magazine:
http://www.historynetshop.com/ah0904.html
Though it blames Jefferson as "The Founding Father of Financial Crisis". Article is not available online, but that issue is still current - I found it at the supermarket

But you can fire back - The 2nd Bank of the United States caused the American republic's first nationwide recession:


“Starting in July of 1818…the BUS (2nd Bank of the United States) began a series
of enormous contractions, forced curtailment of loans, contractions of credit in the south and west…The contractions of money and credit swiftly brought to the United States its first widespread economic and financial depression. …The result of this contraction was a rash of defaults, bankruptcies of business and manufacturers...” –Murray Rothbard.

“The pressure placed upon the state banks deflated the economy drastically, and as the money supply wilted, the country sank into severe depression.” –Herman Krooss

Jackson deemed the central bank:

“…more formidable and dangerous than a naval and military power of the enemy.”
and decided he would abolish it, but the head of the bank, Nicholas Biddle fought back:


Historian Robert Remini writes:
“Biddle counterattacked. He initiated a general curtailment of loans throughout the entire banking system… It marked the beginning of a bone-crushing struggle between a powerful financier and a determined and equally powerful politician. (Biddle) knew that if he brought enough
73
pressure and agony to the money market, only then could he force the President to restore the deposits. He almost gloated. “This worthy President
thinks that because he has scalped Indians and imprisoned Judges, he is to have his way with the Bank. He is mistaken. …Nothing but widespread
suffering will produce any effect on Congress…Our only safety is in pursuing a steady course of firm restriction – and I have no doubt that such a course will ultimately lead to restoration of the currency and the re-charter of the Bank…”

Biddle's plan succeeded and Jackson was blamed initially, but when the people found out Biddle intentionally caused the crisis, faith in Jackson was restored and the central bank was abolished (well actually, it was restructured into a state bank).

It was fortunate that the people found out the truth b/c the lawmakers were bought and sold by Biddle:

“When the investigating committee arrived at the Bank’s doors in Philadelphia armed with a subpoena to examine the books, Biddle flatly refused. Nor would he allow inspection of correspondence with Congressmen relating to their personal loans and advances. …For lesser mortals, such action would have resulted in…stiff fines or imprisonment. But not for Nicholas Biddle. Remini explains:
“The committeemen demanded a citation for contempt, but many southern
Democrats opposed this extreme action, and refused to cooperate. As Biddle bemusedly observed, it would be ironic if he went to prison “by the votes of members of Congress because I would not give up to their enemies their confidential letters.”

[InterestedParticipant]

A friend swears by this.. I'm trying to find an easy way to explain it to him, obviously wiki-washed.
Your friend is brain-dead and is probably beyond resuscitation. The USA experienced its greatest wealth generation during the 60 years post-Jackson... we developed the West, built infrastructure, laid the railroads, etc. The only way anyone could curtail the wealth generation for the people was by increasing immigration to displace the workers.


He may have gotten his information from this 6 page central banking propaganda article in American History magazine
I would be very careful about which historical sources one uses, for the American History Assocations (AHA) was established by Ford, Carnegie, Rockefeller and Guggenheim to alter the teaching of American History. Give your friend a copy of this transcript (http://supremelaw.org/authors/dodd/interview.htm) to read (from an interview with the Director of Research for the Congressional Reece Committee into Foundations):


At that time, their interest shifts over to preventing what they call a reversion of life in the United States to what it was prior to 1914, when World War I broke out. At that point, they come to the conclusion that, to prevent a reversion, we must control education in the United States. And they realize that is a pretty big task. To them it is too big for them alone.

So they approach the Rockefeller Foundation with a suggestion: that portion of education which could be considered domestic should be handled by the Rockefeller Foundation, and that portion which is international should be handled by the Endowment.

They then decide that the key to the success of these two operations lay in the alteration of the teaching of American History. So, they approach four of the then most prominent teachers of American History in the country -- people like Charles and Mary Byrd. Their suggestion to them is this, “Will they alter the manner in which they present their subject”” And, they get turned down, flatly.

So, they then decide that it is necessary for them to do as they say, i.e. “build our own stable of historians." Then, they approach the Guggenheim Foundation, which specializes in fellowships, and say” “When we find young men in the process of studying for doctorates in the field of American History, and we feel that they are the right caliber, will you grant them fellowships on our say so? And the answer is, “Yes.”

So, under that condition, eventually they assemble twenty (20), and they take these twenty potential teachers of American History to London. There, they are briefed in what is expected of them -- when, as, and if they secure appointments in keeping with the doctorates they will have earned.


That group of twenty historians ultimately becomes the nucleus of the American Historical Association. And then, toward the end of the 1920's, the Endowment grants to the American Historical Association four hundred thousand dollars ($400,000) for a study of our history in a manner which points to what this country look forward to, in the future.

[tnvoter]

Bless you all, TYVM

[diggronpaul]

bless you all, tyvm
tyvm???

[acptulsa]

tyvm???

Thank you very much.

[diggronpaul]

Thank yuo very much.
Thank you, I just learned something new today :)

[acptulsa]

Thank you, I just learned something new today :)

Like how not to spell 'you'? :o

[mediahasyou]

I don't trust state banks anymore than the Federal Reserve.

[strapko]

Andrew Jackson did not cause a great depression, not by his policies at least. Nicholas Biddle inflected the depression as a threat to Jackson and to scare the American public, so they can blame him. But later Nicholas Biddle was arrested(he was the head of the central bank at that time, closely connected with Rothschild banking dynasty in England.)

[acptulsa]

So, if they're right, it seems to me it just speaks to the ruthlessness of the central bankers when they don't get their way. And it wouldn't be the last depression triggered by the actions of those who wished to reap some profits through speculation and/or punish the public for this or that in this country.

[ourlongroad]

I don't trust state banks anymore than the Federal Reserve.
Yup, Jackson's mistake was not to shut down the fractional reserve banking window, which allowed the foreign cabal to hang around long enough to try to break up the union and push us into Civil War under Lincoln.


So, if they're right, it seems to me it just speaks to the ruthlessness of the central bankers when they don't get their way. And it wouldn't be the last depression triggered by the actions of those who wished to reap some profits through speculation and/or punish the public for this or that in this country.
Ever read the report "One World or None (http://www.fas.org/oneworld/index.html)" by many of the scientists behind the Atomic bomb? Yeah, these guys are serious, it's either their way or destruction.

I'm ready to call their bluff, are you?

[Imperial]

Just so you know, they standardly teach that wildcat banks were the cause of the recession, and half-imply Jackson was idiotic on this issue. Similarly, the gold standard caused the Great Depression and the Articles of Confederation failed.

Of course, towards the later part of the recession Jackson did issue the specie circular which forced more liquidation of the market, but the liquidation would not have been required in a free society.

[acptulsa]

Ever read the report "One World or None (http://www.fas.org/oneworld/index.html)" by many of the scientists behind the Atomic bomb? Yeah, these guys are serious, it's either their way or destruction.

I'm ready to call their bluff, are you?

Yes. Have been for a long time. But I must warn you--what you said in the paragraph above is true, and the second paragraph isn't. This isn't a bluff. We take them out of power, and they'll feed us the most bitter of medicine in a heartbeat.

Don't mistake them for people with hearts.

[ourlongroad]

We take them out of power, and they'll feed us the most bitter of medicine in a heartbeat.

Don't mistake them for people with hearts.

I understand who they are and what we are up against. But some things, such as unalienable rights and individual sovereignty, are non-negotiable.


....anyone in the psychopath's orbit who turns from enabler to disabler immediately courts great danger. When no longer "of use," that person can be targeted for destruction. Example cases: 1. the mob boss who enriches his associates but intones, "don't ever go against the family," and will mercilessly execute anyone who does, no matter how formerly "beloved." 2. the politician who puts the highest premium on "loyalty" and will remove and destroy the career of anyone who experiences a change of heart. 3. The CEO who surrounds himself only with "yes" men who help him build the company and steer it in the direction he wants, no matter how questionable or illegal -- but will immediately oust any who exhibit dissent, without regard for their years of service or value to the current structure.

http://siivola.org/monte/papers_grouped/uncopyrighted/Misc/corporate_psychopathy.htm

[Aratus]

president jackson's move against mr. biddle's BUS with its pros & cons and many of the other events of
his presidency has been praised by both the FDR era new dealers & the robert taft small gov't republicans...
FDR took to heart the populists and the grangers of the 1880s & 1890s, and when going back in his mind's eye
and seeking an insight into the turbulent 1830s, he'd often ask what happened 100 years before his time...