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1832 Bank Recharter Bill
The Bank Recharter bill was passed by congress to recharter the national bank because they wanted central control of the economy and a stable national currency. -
Jackson's Veto
Jackson vetoed the National Bank because he did not like the bank. He felt it was unconstitutional (although it had been deemed so by the Supreme Court) and gave too much power. -
Election of 1832
Andrew Jackson was elected for a second term of presidency. He won against Henry Clay, who had led the bank recharter movement and was the former Speaker of the House and Secretary of State. Jackson won 219 of the electoral votes. The Bank was a central issue during the election. -
Andrew Jackson Removes Federal Deposits
Andrew Jackson continues his process of destroying the bank. He used executive power to remove all funds from the bank and redistributed it to state banks. This is because he disagrees with the fundamentality of the bank, and sees it as a way for northern rich industrialists to have more power in the country. As the president is a symbol of the common man, he wanted to get rid of the bank, viewing it as violating the rights of the people. -
Biddle Response
Nathaniel Biddle was the president of the National Bank. He got many supporters and began putting in efforts to get recharter of the bank. He accused Jackson of abusing his executive powers. -
Jackson's Pet Banks
Andrew Jackson giving the former federally funded money to state banks created pet banks. Pet banks was actually a derogatory term that was created by people who were anti-Jackson and supported the bank. -
Speculative Boom
A Speculative Boom is an exaggerated anticipated economic growth in a certain area. The state chartered banks were not interested in fiscal responsibility or actually protecting money, so they lended out more money to more people. This along with other economic factors such as cotton, led to a short term economic boom in America. -
Specie Circular
The Specie Circular was an executive order issued by Jackson that said public lands had to be paid for with either gold or silver. This was because the government did not want to accept currency that was actually declining in value because of high levels of inflation. However, this order further contributed to the Panic in 18837. -
Crash of 1837
The crash of 1837 led to a recession that lasted until the 1840s. It resulted from Jackson's financial policies such as the specie circular, and the loss of the national bank that had once restrained the state banks which had now become out of control, over speculation of land, and the depreciation of the national currency.
