Bank War

  • Charter of 2nd National Bank

    Charter of 2nd National Bank
    After the First National Bank's Charter expired it wasn't renewed under Madison because he was a Republican, who traditionally did not like the national bank. The Second National Bank was chartered under John Quincy Adams and was set to expire 20 years after it was chartered. It was put into place in the hopes of controlling the random currencies circulating between the states and supporting Northern industry, which was the region Adams got most of his support.
  • Panic of 1819

    Panic of 1819
    The Panic of 1819 lasted for about 3 years, being caused by a crash in crop values in the South, a crash in industrial exports in the North, and a crash in property values everywhere. The main causes were the bank's poor management of inflation and a lack of protective tariffs for industry up North. All this crash did was increase sectionalism, as the South blamed the bank supported by the North, and the North blamed the low tariffs called for by the South.
  • McCulloch v. Maryland

    McCulloch v. Maryland
    Traditionally the Republican argument against the National Bank was that it was unconstitutional, and government banks are to be created by the states as it's not an outlined power. This case decided the government could charter a bank, making the South's fight against the bank an uphill battle
  • Election of 1832

    Election of 1832
    Jackson ran and won against Henry Clay, a westerner and former War Hawk who was in support of the bank. Jackson carried almost every state in the election, winning in a landslide, and showing the American distaste for the National Banking system. Jackson had three rivals who won at least one state, showing the need for unity among the Anti Jacksonian-Democrats.
  • Jackson Vetoes bank recharter

    Jackson Vetoes bank recharter
    The bank recharter was proposed 4 years early to make Jackson pick a side when it came to the bank ahead of the 1832 election. The belief by Biddle, the head of the Second National Bank, was that the bank would be rechartered, guaranteeing his job and making Jackson lose favorability in the South. When Jackson vetoed the recharter, it caused anger in the North among Jackson's enemies but gained him enough favor in the South to easily win the election of 1832.
  • Jackson Anti-Bank acts

    Jackson Anti-Bank acts
    To cut the power of the bank faster than its charter could expire, Jackson passed a series of bills stopping the flow of money in and out of the bank. Jackson stopped the collection of tax money into the bank, cutting off its ability to lend.
  • Creation of the Whig Party

    Creation of the Whig Party
    The Whig Party was a party organized specifically to combat the Jacksonian Democrats, as they believed Jackson was tyrannical and a threat to America. This group took its name from the British Whigs, who were opposed to royal power, and the American Whigs believed Jackson to be threatening in the same way. The Whigs won many seats in Congress in the midterms of 1834, showing resistance to Jackson's actions.
  • Censure Resolution

    Censure Resolution
    An Anti-Jacksonian coalition of Congressmen, led by Henry Clay, was very powerful at the time, controlling both the House and the Senate. This group was angry over Jackson's anti-bank measures, and they Censured the President, meaning they publicly denounced his actions and stated that they believed what he did to be unconstitutional. This had never been done and was later removed and never done again to any President, with it being seen as disrespectful and a "dark spot" in Congress' history.
  • Expiration of Bank Charter

    Expiration of Bank Charter
    The Second National Bank was disbanded and removed in 1836 following the expiration of its charter. This left a massive hole in the American economy, and worries over the future effects, especially in Northern states that needed the funding for industry provided by the bank.
  • Jackson's Specie Circular

    Jackson's Specie Circular
    Jackson's Specie Circular was an executive order that went into effect on August 15th, 1836, ordering that all public land must be bought with gold or silver. Jackson did this to try and stop all effects of the bank, along with stop land speculation out west and in former native territories. This act unfortunately deflated the value of the American dollar, causing concern across the U.S.
  • Panic of 1837

    Panic of 1837
    The Panic of 1837 lasted until 1842, caused by Jackson's Specie Circular and his incompetence regarding the banking system. This panic was blamed on Van Buren, who was the President after Jackson, and who inherited this crisis. The panic saw credit fall and the crash of a real estate bubble created by excessive loans after the National Bank fell. This crash, blamed on Democrats, created distrust of the Democrats' ability to handle the economy.
  • Election of 1840

    Election of 1840
    The Election of 1840 saw the defeat of incumbent Democrat Van Buren after the blame for the Panic of 1837 was blamed on him. This election was the first election similar to today, containing much more campaigning than previous elections. The election, won by the Whigs, was only celebrated for a little while, as 32 days after his inauguration, the President died, leaving the presidency to an ill-experienced John Tyler, who could do little against a Democrat-controlled Congress.