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1832 Bank Recharter Bill
The charter for the National bank was up for renewal and posed as the next decision in congress. The decision was if they should carter a second U.S. bank or not. The Whigs were for the renewal of the charter because they believed the bank stabled the economy and it gave more power to the federal government. The democrats did not want the renewal because they felt the bank had too much power and was unfair. -
Jackson's Veto
Congress passed the bank recharter bill but President Jackson vetoed the bill. Representing the democrats, he felt the bank was unjust and it was incompatible with justice. Him along with the other democrats wanted the National bank gone and destroyed. On the other hand the Whigs did not but they had no say at this point. -
Election of 1832
During this election, there was the introduction of a third-party, the Anti-Masonic party (against Jackson and masons). The nominees were Andrew Jackson representing the democrats, Henry Clay representing the whigs, John Floyd as an independent, and William Writ representing the anti-masons. Jackson won the overall election making the democrats dominate congress once again. -
Biddle Response
Nathaniel Biddle, president of the nation bank, argued against Jackson about the recharter of the bank. Although Jackson wanted the bank to be done away with, Biddle made efforts to keep the bank by creating a congressional committee to vote for it. Jackson vetoed the charter anyways. The whigs and Biddle felt Jackson was abusing his powers as President. -
Jackson Removes Federal Deposits
President Jackson removed all federal funds from the second bank of the United States to declare that the nation will not be using a national bank any more. He put all of the federal funds in pet banks or wildcat banks out west. The democrats of course supported his decision and the power he had to do so while the whigs were not so happy at the fact that Jackson used his executive power like that. -
Jackson's Pet Banks
After vetoing the recharter of the Second bank of the U.S. and doing away with it, all the funds that Jackson took out of the bank went to other banks called "pet banks". There were seven of them and they were state banks that received all of Jackson's deposits.This helped contribute and led to the financial panic. -
Speculative Boom
This boom means that there was a false notion that money is in abundance or there is a lot of it and the economy is growing. After Jackson moved all the funds to pet banks within the states people thought they were richer and overused and spent his money causing the soon economic crash and panic of 1837. -
Specie Circular
This was an executive order by Andrew Jackson that claimed that all public lands are required to be purchased with metallic, coined money. This was ultimately the last straw before the panic of 1837 and led to this economic crash. -
Crash of 1837
This was an economic downfall and financial crisis that lasted until the mid 1840's. The rate of unemployment went up while profits, wages, prices, etc. went down. This was due to the national bank being dismantled by Jackson and the democrats and people overspending the money that was given to pet banks.
