What were the so called pet banks?

What were the so called pet banks?

Pet banks is a derogatory term for state banks selected by the U.S. Department of Treasury to receive surplus Treasury funds in 1833.

Who did the pet banks?

President Andrew Jackson
Lesson Summary President Andrew Jackson succeeded in killing the central bank, which he viewed as too powerful and unconstitutional. In 1833, he ordered the Secretary of the Treasury to remove funds from the BUS and deposit them into twenty-three pet banks.

Who deposited funds into pet banks?

In 1832, Jackson ordered the withdrawal of federal government funds, approximately ten million dollars, from the Bank of the United States. The president deposited these funds in state banks and privately-owned financial institutions known as “pet banks.” Ohio had nine of these banks.

What were pet banks quizlet?

Pet banks were state banks into which Jackson deposited federal funds after he withdrew them from the Bank. They were given this name because people thought the banks were chosen on political grounds.

Why did Andrew Jackson hate banks?

Andrew Jackson hated the National Bank for a variety of reasons. Proud of being a self-made “common” man, he argued that the bank favored the wealthy. As a westerner, he feared the expansion of eastern business interests and the draining of specie from the west, so he portrayed the bank as a “hydra-headed” monster.

What made a bank a pet bank?

What made a bank a pet bank? Pet banks formed during the United States in the 18th century because of the banking policy of President Andrew Jackson. They resulted from a banking policy that involved a veto of the Second Bank of the United States by then president Andrew Jackson.

What was specie?

In July 1836, President Andrew Jackson issued the Specie Circular. Under this act, the government would only accept gold or silver in payment for federal land. This act prevented working-class Americans from purchasing federal land in the West, including in Ohio, due to the lack of gold and silver.

What role did pet banks play?

PET BANKS. An attempt by President Andrew Jackson to eliminate the Bank of the United States resulted in the rise of seven “pet banks, ” state banks that received deposits of federal money on 1 October 1833. Use of the pet banks contributed to a national financial panic that year.

What was the purpose of pet banks?

President Jackson directed that this money should used to pay the government’s expenses, and that no more government money should be deposited in the bank. All future deposits were to made into certain state banks – those that were controlled by Jackson’s political friends and referred to as the ‘Pet Banks’.

What were pet Banks choice answer choices?

Pet banks were: state banks that received federal government deposits. allowed to issue notes that were not covered by specie reserves. those established by Jackson’s executive order in 1829.

Who won the Bank War?

The Whig’s decision backfired as Jackson won handily and saw his victory as a mandate to destroy the bank. [2] While the Bank War is an important piece of American history, it is also obviously relevant in determining Jackson’s status as a representative of the common man.

What happened to Jackson’s pet banks?