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1832 Bank Recharter Bill
was made to renew the corporate charter of the second bank of the US. The second bank was created after the war of 1812. was thought to yet again favor the Northern states. was only supposed to last till 1836 but Henry Clay the bank president to renew , congress passed the bill but Jackson vetoed the vote -
Jackson's Veto's
While in his presidency he took the advantage and vetoed the bank charter bill. Gaining m ore attention from his voters and making those who didn't like him mad (Henry clay, Daniel Webster, and Nicholas Biddle). -
Election of 1832
Henry Clay ran against Jackson, Jackson was focused on getting rid of the national banks and Clay supported the banks. Jackson won yet again with 219 of the 286 electoral votes cast. Once re-eleceted he was free to act on the bank issues. -
Jackson Removes Federal Deposits
Jackson started taking all of the money out of the national reserves and putting it into state banks. He thought getting rid of the bank would cause the nation banks to collapsed (it did) leading to an economic crisis -
Biddle Response
Nathaniel Biddle, president of the national bank, began taking actions to recharter the national bank. Biddle did not like Jackson;s harsh actions, he went to congress to recharter the bank, congress voted to recharter but yet again Jackson vetoed their vote. Biddle claimed that Andrew was abusing his executive power. -
Jackson's Pet Banks
Pet banks were the banks that Jackson transferred the national reserve money, he thought that this would elimiante the Nation banks (which it did). But it hurt the economy, and killed the National bank. We later learned the importance of a good balance between a strong national bank and strong state banks -
Speculative Boom
A speculative boom is a false impression that more money is heaps, and that the economy is growing. Causing people to think that since the federal money was "moved closer" they would become richer people causing them to over spend and abuse the use of money that they did not have. -
Specie Circular
An act created by Jackson but president Van Buren carried it out.Required payment for government land to be in gold and silver.The Act was a reaction to the growing concerns about excessive speculations of land after the Indian removal, mostly done with a paper currency. Leading to paper currency becoming soft (drastic shift in paper money value) Economy suffered drastically, people became mad at Van Buren, causing people to see the importance of a national bank. -
Crash of 1837
The national bank began to fall due to overspending leading to a deep economic recession. American prices fell and people became bankrupt. state banks also collapsed due to no strong national support
