-
Early Bank re-charter
Leading towards the election, Henry Clay and Daniel Webster set out to get the Second National Bank's charter renewed, even though the bank was good for another 4 years. Clay hoped it would help him in the election, and he had anticipated that President Jackson would veto the charter. He knew that vetoing the charter would anger the people of the north, which would draw them to Henry's side and might possible win him the election. -
President Jackson's veto message
President Jackson decided to veto the re-charter of the second national bank. He did not agree with foreigners creating monopolies, not only posing as a threat to the American citizens, but ultimately taking money out of their pockets and transferring it theirs. He believed the American people were the only ones who should have stocks in the bank, and therefore they should come together as a union and fight off the corruption. -
Election of 1832
In the election of 1832, Democrat Andrew Jackson easily beat Republican Henry Clay, making this his second term in office. This was the first election in which the candidates would be nominated by nominating conventions In this term, he set out to destroy the Second National Bank. Although he vetoed the re-charter, there was still a chance the charter cold be renewed, so therefore he decided to destroy it before it has the chance to get renewed within the last 4 years of its previous charter. -
Nicholas Biddle actions for the bank
Biddle already speculated that President Jackson, so before Jackson could declare anything, he decided to do anything he could to save the bank. He started calling in loans, asking for notes of redemption, and overall contradicting the values of credit. -
Bank funding removed
Although he vetoed the re-charter of the Second National Bank, there was still a chance for it to be re-charted since the original charter did not expire until 1836. Knowing this, Jackson decided to stop the funding the national bank and put money into the state/pet banks, and no longer allowing the banks to accept deposits. he set out to destroy the bank, which in turn did more harm than good. Inflation rose, and the economy declined towards the end of his term. -
Money loses value
Due to the fact that money was now invested in state banks rather than the national bank, the printing of paper money increased, causing many people printing and spending more money. The value of a dollar quickly decreased, because everyone now had access to more money. Initially, people thought having more money was a good thing, but when they realized it had little to no value, debt started to occur. -
Coin money
Jackson noticed the overuse of paper money, so he decided to write a document, Specie Circular, to decree the use of large-valued coin money, which would be used to make bug purchases such as land. Although it solved some problems such as the overuse of paper money, it did not fix the economy as a whole, which foreshadowed a later economic crash.... -
Panic of 1837
The Panic of 1837 was a series of years where the economy reached a very low recession point. Unemployment rates went up, prices went down, and people could not afford necessary items. President Jackson's term was over, and President Martin Van Buren took over, giving him a lot to deal with regarding the depressive economic stage America was in.