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Charter of the Second Bank
This Second US Bank, modeled after Alexander Hamilton's First National Bank, was established by President James Madison. This bank was again chartered for a period of 20 years, and it was once more unpopular with the poorer people who believed that the bank once again served the interests of the wealthy and with the new states and territories as well as bankers who hated the bank's monopoly on the Union's credit and currency. -
Panic of 1819
In the US, this was the country's first major financial crisis. This delayed the westward movement, and what came next was an economic downturn that lasted until 1821. Too many bank notes and credit lines were released as a result of the Bank's lending procedure. Farms went bankrupt, forcing the banks to fail and the debts to be reimbursed when banks had to call the loans back. -
Early Recharter Bill
The Second Bank of the US was not scheduled to expire until 1836, but supporters of the bank, such as Henry Clay, pushed to recharter the bank sooner than anticipated in order to undermine Jackson's political standing. -
Back Renewal Vetoed
Despite the fact that this bank, like the first, was prosperous, Jackson harbored a deep-seated mistrust for the institution. Jackson rejected the request when bank supporters in Congress pressed for an early charter renewal because he thought the bank was too strong. Many Northern businesspeople were offended by this, but Jackson's supporters were happy because they believed he was standing out for the common man. -
Election of 1832
Andrew Jackson is re-elected to be President of the United States. In this election, he ran and won against Henry Clay. -
Creation of the Whig Party
Jackson's refusal to provide financial support for the Second National Bank prompted the formation of this party in the 1840s. They were led by Henry Clay and opposed Andrew Jackson's ideas. -
End of the Second National Bank
Jackson commanded the closure of the Second US National Bank and the removal of all federal money from the institution as well as a halt to all deposits of federal funds. Then, this money was put in a few special banks or "pet banks." This served as the 'Bank War's' climactic battle. -
Pet Banks
'Pet banks', a derisive phrase for state banks selected by the government to receive treasury funds, were established in order to totally phase out the use of the Second National Bank. But by failing to control the economy, these institutions contributed to a significant economic crisis. -
Specie Circular
Jackson issued this directive as an executive order in 1836. It said that payments for government land must now be made in gold and silver rather than bank notes. This led to demands for coinage, which the banks were unable to supply, leading to bank failures, credit restrictions, and higher unemployment. The panic of 1837 had this as one of its main causes. -
Panic of 1837
Up to the middle of the 1840s, this US financial crisis also persisted. The westward growth came to an end, profits and wages declined, and unemployment rose. This occurred at the start of Van Buren's administration, which took on Jackson's financial problems. Get-rich-quick schemes, Jackson's Bank War, and the Specie Circular were to blame for this. -
Election of 1840
President Martin Van Buren was defeated in this election by the Whig party, which was represented by General William Henry Harrison. The Whig party employed the tactic of avoiding touchy national issues, and this was the first election in which a candidate other than a Democrat or Republican won.