Bank of the United States Sight Draft signed by Nicholas Biddle - 1831

Exchange note from the Bank of the United States issued in 1831. This historic document was printed by Draper Underwood Bald & Spencer and has a vignette of an eagle. This item has the hand signed signatures of the Bank's President, Nicholas Biddle, and Cashier, and is over 180 years old. The draft was issued for the Baring and Brothers in London in the amount of 114 Pounds. Signed on the back by James Roosevelt




Certificate Vignette



Nicholas Biddle (January 8, 1786 – February 27, 1844) was an American financier who served as the president of the Second Bank of the United States.

The "Bank War" of 1832–36 was initiated by Biddle when he decided to apply for the Bank's re-charter four years before the charter was scheduled to expire. Until 1832, Jackson, for three years, had ignored the Bank and Biddle. But, once challenged, he decided to veto the bill to re-charter the bank, which was being pushed by Senator Henry Clay of Kentucky in preparation for another Presidential run later that year. Jackson, well-known as a man whom one did not want to anger, still harbored ill will towards Clay from the 1824 Presidential election. Clay's strategy failed, and Jackson gained great support from the public for his veto. Clay lost to Jackson again in November despite massive funding of over $3 million in bankers' support.

In early 1833, Jackson decided to pull the government's funds out of the Bank. The Secretary of the Treasury, Louis McLane, was favorable to the Bank. He refused to withdraw the funds and would not resign, so Jackson removed him as Secretary of the Treasury by appointing him to Secretary of State. His replacement, William Duane, deliberately delayed. After waiting four months, Jackson replaced him as well. The third man, his former Attorney General, Roger B. Taney, complied. The funds were transferred to seven state-chartered banks in late September. This put the Second Bank on the defensive. It had lost its biggest depositor, by far.

To fight back, Biddle decided to shrink the money supply and cause a recession in 1834 in order to force Jackson to accept a re-charter bill. The Bank demanded that old loans be repaid. It made no new loans.

There was a brief recession in the first half of 1834, but another bill to re-charter failed in the House on April 4. That was the last time the issue ever came before Congress. And so, the Bank was doomed. Their charter expired in April, 1836.