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Second National Bank
The Second National Bank was created in 1816 by James Madison and it was once again chartered for only 20 years. This bank was the heart of the "Bank Wars." Many argued that it was unconstitutional for the government to have a national bank, others simply thought it was a threat to the economy. Newer states/territories disliked the power the national bank had over the credit and currency of the nation. Likewise, poor people believed it only represented wealthy people, leaving them out. -
Panic of 1819
The Panic of 1819 was an era of financial panic for the US. Banks failed, unemployment increased, and agricultural prices decreased. It was caused due to the bank lending too much money. For example, when the banks called for the loans back, businesses closed, then banks failed. -
McCulloch V Maryland
The question before the Supreme Court in this case was, “Does any state have the constitutional right to tax an agency of the United States government?” Maryland believed they had the right to tax the National Bank. Given this, the court decided States did not have the power to tax the national bank. This was significant because it gave the federal government more authority over the economy of the country. -
Election of 1832
The national bank was essential in the election of 1832. Previously, President Jackson had mentioned how he believed the national bank was organized and a threat. The bank still had 4 more years to go so he decided to veto it which helped him gain popularity. His opponents feared that by doing that he would ruin the economic status of the US. In the end, Jackson defeated Clay and served another term in office. -
Nicholas Biddle V Andrew Jackson
While Andrew Jackson heavily objected to the National Bank Biddle, the president of the bank, showed his support. The Second National Bank was known to be the first effective bank in the US, thanks to Biddle. Although Biddle did a good job running the bank, Jackson still believed the bank had too much power over the economy of the country. With its success, Biddle applied for a new charter before the old one was over, and it passed, but Jackson Vetoed it. -
Creation of Whig party
After the election of 1832, Jackson's opponents came out to the light and created a new party known as the Whig Party. This group of people, from the National Republican Party and led by Henry Clay, was upset because Jackson would no longer fund the National Bank -
Pet Banks
Pet Banks were small state banks that received US funds from the National Bank to destroy it. Soon after, most of the banks either shut down or joined larger banks because they failed to regulate the country's economy. These banks led to the panic of 1837. -
End of the Second National Bank
During the election Jackson had vetoed an attempt to create a new charter for the bank, leading him to gain popularity. Following Jackson's victory, he removed all federal funds from the bank and distributed them to state banks. He also did not allow deposits to the bank. This successfully destroyed the Second National Bank which expired in 1836. -
Panic of 1837
The Panic of 1837 was an economic crisis in the US that led to a depression. Wages, prices, and profits, all decreased significantly, which put a stall on expansion to the West. It was caused due to banks loaning out too much money as well as printing too much of it. This crisis went on for a couple of years. -
Election of 1840
After many economic struggles in the US, the democratic party had no chance of winning the election. The democrats had led them to hard times and struggling financial issues, such as low wages and employment. Harrison, a candidate of the Whig party, became the new president of the nation. People liked that he participated in the War of 1812 and was known as a "hero" during the Native American conflicts. Harrison did not last long, he passed away a month into office, leaving Tyler at office.