President Jackson continued to spar with opponents in Congress throughout his second term. In 1833 he felt that he had a mandate to deal with the bank as a result of his reelection in 1832. Jackson ordered the secretary of the treasury to announce that public funds would no longer be deposited in the Bank of the United States. By the end of 1833, 23 state banks had been designated as depositories of federal funds, and the first funds had been transferred to a bank in Philadelphia. When the Senate called for the papers dealing with Jackson's decision on the bank, Jackson refused to submit them. Instead he claimed "executive privilege,"—the notion that Congress has no right to demand that he account for his private dealings with his Cabinet. (The issue of executive privilege has been tested repeatedly in modern times, the best known case being that involving President Nixon and the Watergate affair.)
In 1836 a specie circular was issued directing that only gold, silver and a limited amount of paper would be accepted for the payment of purchases of public lands. The specie circular put pressure on the state banks, known as "pet" banks. Jackson's bank policies eventually contributed to the panic of 1837.
Foreign Affairs under Jackson. Foreign affairs were not a high priority in Jackson's administration. Through a series of negotiations Jackson had improved trade relations with Great Britain during his first term. Jackson then began to pursue negotiations regarding claims against France left over from the period before the War of 1812. In 1831 the French government agreed to pay 25 million francs against those claims. When the French government failed to make good on those payments, however, Jackson threatened reprisals against French property. Jackson's blustery language offended the French, and for a time it appeared that war might result. Through British mediation, however, France was mollified and the issue passed.
Events in Texas (which will be covered in a later chapter) also got the attention of Jackson's administration. One of Jackson's early priorities was the acquisition of Texas, but the minister he sent to Mexico with vague instructions bungled the negotiations. When the newly independent Republic of Texas made overtures about joining the United States, Jackson wisely demurred, fearing war with Mexico. (The war with Mexico came in 1846.)
World History
