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The creation of the 2nd National Bank
The 2nd National Bank was established by James Madison. The reason why James Madison decided to create a new National bank was because he got rid of the 1st National Bank that Hamilton made. The reason why he got rid of the 1st National Bank was because it would only benefit a small group of people instead of the entire nation. The reason why he brought back the 2nd National Bank was because he needed to supply money from the war with Great Britain at the time. -
Opening of the 2nd National Bank
The 2nd National Bank was located in Philadelphia, Pennsylvania. The bank was chartered from February 1816 to January 1836. The bank managed 25 branches and offices nationwide by the year 1832. -
William Jones
William Jones was the first President of the National Bank. While Jones was there he decided to move the bank into credit, and then reversed it way too quickly which caused a financial panic in the economy. Which then made the economy go into a recession which basically means that the economy goes down which isn't good. He became president of the bank in 1816, then he then left in 1819 and decided to just pursue commercial business. -
The Panic of 1819
The Panic of 1819 occurred because of the growth in trade due to the War of 1812. Which was the first widespread financial crisis in the United States. Banks failed, Unemployment mounted, mortgages entered foreclosure, and agricultural prices went down 50% of their original price. Investments also didn't help at all during this time. Banks allowed too many banking notes which was the leading cause of all the issues with the bank. The person who left the bank like this was William Jones. -
Langdon Cheves
Langdon Cheves, a Speaker of the House from South Carolina, was elected the next President of the National Bank. He was elected in 1819, directly after the 1st president's resignation. Langdon Cheves during this time had to fix the issue with the Panic of 1819. He made fewer loans, cut the bank notes in half, and foreclosed on mortgages. Which didn't save the bank and was a bigger problem. -
Nicholas Biddle
Biddle served on the board of the National Bank and was also the Pennsylvania legislator. He also opposed Andrew Jackson during the Bank War. He then secured a state Charter to keep the bank Operating and making sure it was well. He also put restraints on the supply of credit from the bank. He also argued against Andrew Jackson saying that the bank was constitutional. -
Bank War of 1832
The Bank War occurred because Andrew Jackson vetoed a bill that prevented the chartering of the 2nd National Bank from happening again. The reason why he did this was because he believed the bank was unconstitutional. When Jackson was elected president for the 2nd time he stated that the Government would no longer help the Bank. Biddle tried to save the bank by restricting the bank's loans. To try and make the people speak out against Andrew Jackson, people questioned the bank's power. -
The closing of the 2nd National Bank.
Andrew Jackson decided he would no longer fund the National Bank because of personal reasons with it being unconstitutional in his opinion. He no longer supplied money to the National Bank trying to destroy it and Andrew Jackson ended up winning against his rival Nicholas Biddle. He didn't like the power the Bank held over the country because of how much money they had. The bank ended up shutting down in 1841 because it was forced to become a private corporation but they ran out of supplies. -
Andrew Jackson
in 1837 Andrew Jackson resigned being President of the United States meaning he couldn't do anything to the non-existent National Bank. The next election occurred and this time due to Andrew Jackson holding too much power, he caused a new political party to grow called the Whigs party. -
Election of 1840
The election of 1840 was between William H. Harrison and Martin Van Buren. Martin was running for the Democratic party while William ran for the Whig party. The Whig party was a party that disliked strong Presidential power and disliked the Manifest Destiny movement which was believed to be the right that the expansion of the U.S. was morally correct. Since the Whigs were in office they purposely made the Whigs oppose Andrew Jackson in being a strong President, because he harmed people.