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2nd Bank
The second bank was the reinstitution of the first national bank as created by Alexander Hamilton. This bank was chartered for about 20 years after it's creation. It wanted to secure a national currency. However, some states were not for the bank, questioning it's constitutionality. This national bank differed because it could have branches within multiple states as well as provide government funding, unlike other banks during the time. This bank would eventually lead to the Bank War. -
Panic of 1819
After the war of 1812, there was growth in trade. When the boost in trade came to a halt, there was a financial panic known as the Panic of 1819. It was a shocking financial sweep where banks began to close, there was unemployment and agriculture fell. This panic cause mass distrust and a lasting effect on Americas confidence in the banking system and national bank. The national bank was heavily impacted by the failing financial situation, the state banks facing foreclosure. -
Jacksons Address to Congress (1)
In Jacksons first Annual Address to Congress, though he mentioned many things, he brought the National Bank into the conversation. Jackson spoke against the bank, mentioning it's unconstitutionality and that fact that it had failed at its purpose of creating a sound currency anyway. He advised congress to quickly decide on the constitutionality of the Bank. It was also stated that the charter should be reworked, if such an institution was needed for the United States. -
Jacksons Address to Congress (2)
Again, in his address he spoke against the bank and it's constitutionality and purpose. Here, he introduced a possible alternative in which a new bank would not be private, but public in nature. The old bank had purposes to due with the lending and the purchasing of land. Jackson believed that it should only have dealings with the Treasury. The people for the National Bank, knew that they had to ramp up their efforts due to how negatively the bank was being seen. -
Veto of the Second Bank
In 1832, Henry Clay proposed a recharter of the National Bank Early. Of course, Jackson being against the national bank, vetoed the bill even though it passed congress. He claimed that it was unconstitutional. However, this was a smart move by Clay because he then used it as an argument in the election of 1832. Since it was vetoed, the national bank was never recharterd, and therefore expired 20 years after it's creation. -
Pet Banks
Following Jacksons veto of the recharter of the Second Bank, "pet banks" were created. These state banks were given funding instead of the National Bank. The purpose was to derive the funding for the national bank, giving it to other banks set by Jackson. The state banks, however, became dysfunctional as the managers failed to handle the states money. This was mostly due to land speculation, which gambled with the value of large quantities of land. -
Election of 1832
The veto of the bank by Jackson became a main argument of the 1832. The political parties both created arguments, centered around the validity and purpose of the National Bank. The Jacksonians argued that this was a matter between Jackson and the "People" v Biddle and the "Aristocracy." There was much anti-bank propaganda as well as anger toward Jackson, but at the end of the election, Jackson won the election and continued with his Ant6i-Bank efforts. -
Forming of the Whig Party
Around 1832, the Whig party was formed in opposition of President Andrew Jackson, specifically his refusal to recharter the national bank. One of their first goals as the Whig party was to attack Jackson for the removal of bank deposits, opining to ramp up opposition against Jackson. They supported the national bank, protective manufacturing and general anti-jackson ideals. Henry Clay was a main person in the Whig party, being highly against President Jackson. -
Specie Circular
In 1836, an effort put forth by Jackson to cripple the banks was the Specie Circular. This was an executive order that required that the purchase of land was made within gold and silver instead of a paper currency. Usually, buyer would use paper currency as thats what the bank was able to give out. Jackson decided that it should be made for land to be purchased via gold and silver. This was close to the end of Jacksons term, so some of the orders problems were attributed to Van Buren. -
Panic of 1837
Yet another financial panic, in 1837 America had a major crisis. Wages dropped as well as, profit, unemployment, prices and westward expansion, key to development, was stalled. Cotton prices, especially, dropped during the crisis, which was critical to the south. The panic basically came about because there was no national bank in order to handle the countries fund. Banks eventually ran out of gold and silver as well as basically all other funds. -
Election of 1840
In the election of 1840, the Whig party representative William Henry Harrison snuck by and won against Van Buren. He was very popular in the electoral college but only own with 5% of the popular vote. There was a slogan around at the time, "Tippecanoe and Tyler, too"." This election had a non Democratic-Republican win the Presidency. This would be the first and last time the Whigs won. Harrison did in fact catch pneumonia during his acceptance speech, dying 31 days later.