Andrew Jackson really understood one thing about the Second National Bank… it was Henry Clay’s ‘baby.’ Jackson was the first President to use the veto as a political weapon; killing three spending bills proposed by Clay and his supporters. Clay proposed rechartering the National Bank in 1832 to draw a clear political distinction between he and Jackson in the Presidential election.
“Every monopoly and all exclusive privileges are granted at the expense of the public, which ought to receive a fair equivalent. The many millions which this act proposes to bestow on the stockholders of the existing bank must come directly or indirectly out of the earnings of the American people….”
Jackson was doing away with an evil monopoly… misusing the funds of the American people. That is how he and his advisers rationalized the veto. Jackson and his people did not comprehend the complexities of 19th century American finance, the simplicity of his veto message exposes this rudimentary grasp of economics. Jackson was gambling the fiscal health of the nation for political gain.