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The Bank Recharter Bill and Jackson's Veto
Signed in 1832 and vetoed July 10, 1832, this was meant to be a bill that would recharter the Second National Bank of the United States. It was sent to President Jackson with the Bank hoping for approval, however Jackson vetoed the recharter because he felt that the current charter did not make the modifications necessary in order to make it 1). Compatible with justice, 2). Compatible with sound policy (objective policy), and 3). Compatible with the Constitution of the United States. -
The Election of 1832
This was the 12th Presidential Election of the United States of America, and was between two candidates, President Andrew Jackson of the Democratic Party and Henry Clay, a candidate of the Democratic Republican Party. Jackson was elected president for a second term, which was not expected due to his veto on the Bank Recharter Bill, however due to his appeals to common Americans through the veto and his first presidency he was able to beat Clay through the means of being the popular vote. -
Jackson's Removal of Federal Deposits
During the beginning of President Jackson's second presidential term, Jackson vetoed federal funds that were from the National Bank (the 2nd), and instead took funds and redistributed them to a number of differing state banks, which soon gained the nickname of "pet banks." Doing this, Jackson made a "line in the sand" in the not yet violent war revolved around the Banks, which would create scandal for rich Americans while common Americans bettered their views of Jackson. -
Economic Speculation and the Specie Circular Order
As the United States lowered in national debt and grew in surplus, most Americans speculated about what the economic boom could have meant for America and its citizens. On July 11, 1836, Andrew Jackson enacted a new economic policy that refused the renew the recharter for the National Bank (the 2nd), while also now requiring payments for governmental lands to be paid in physical money through the use of silver and gold. This was not popular among most Americans, so this led to the Panic of 1837. -
National Bank (2nd) Charter Expires
This officially ended the "Bank War" of the United States of America, and occurred after Jackson vetoed the Bank Recharter Bill for the 2nd National Bank, before he would remove federal deposits from the National Bank early on in his second presidential term. Even though the bank stopped most operations in 1833, the National Bank of the United States was formally ceased as being a national institution after its charter expired in 1836, which would aid in the creation of the Panic of 1837. -
The Panic of 1837
This occurred after Jackson's Specie Circular Order, and was a financial crisis that would last from 1837 until 1943. During this period of time, the United States went into a major economic depression, as economic profit, wages, and even prices went down while unemployment levels skyrocketed and crop failure amounts rose. Because of both domestic and foreign economies, this crisis worsened America as a whole, however it is believed to have been worsened by the National Bank charter expiring.
