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Second National Bank
After the first national bank wasn't reestablished in 1811, a second was chartered for 20 years in 1816 to regulate the state banks and their issued notes by using silver and gold as well as to help the economy and businesses following the war. Even years after the initial national bank, the idea remained unpopular among a select number of people, one of which was Andrew Jackson, who made his opinion on the matter very clear. -
Panic of 1819
Not too long after the implemention of the second national bank, the country fell into a state of economic depression. Umemployment rates soared, banks were devestated, and prices fell. Many attributed this panic to be a result of the second National Bank, furthering the public's criticism and the controversy, although the depression could mainly be traced back to rapid decline in cotton prices. -
Jackson's Rejection of the Bank
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Bank Recharter Bill
Due to the upcoming election of 1832, members of Congress, including Nicholas Biddle, Henry Clay, and Daniel Webster, passed a bill for a early recharter of the 2nd National Bank, forcing Jackson to take a side on the debate of the bank in order for him to lose supporters no matter which approach to the Bank he took. -
Jackson's Veto
Although the Bank Recharter Bill passed in both Senate and House of Representatives, President Jackson boldly vetoed the bill, declaring that the Bank was unconstitutional and dangerous for the rights of the states and people. His concern was in the growing gap between the rich and the poor of the country. Congress was unable to override his veto, further jeopardizing the state of the national bank along with placing the issue on the forefront of that year's presidential election. -
Election of 1832
The national bank was one of the most prominent issues in the election of 1832, and served to split the country between the candidates, Henry Clay and Andrew Jackson. While Henry Clay tried to use the Jackson's veto against him in the election to paint him a bad light, Jackson still won by a landslide victory. During the election, he made a mandate promising to abolish the bank as soon as possible. The election also resulted in Jackson's opponents to rally together to create an all new force. -
The Whig Party
Following the election of 1832 and Jackson's victory, his opponents got to together to settle their differences and created the all-new Whig Party. The leaders were Henry Clay and Daniel Webster. They rallied together under the common belief that Jackson was abusing his power and to combat against the Democratic party. The rise of the Whig party turned out to be one of the greatest effects of Jackson's Bank War. -
Jackson's "Pet" Banks
To weaken the National bank, Jackson ordered to cease fund deposits and for withdrawals of the money. These funds would instead be placed into certain state banks, dubbed Jackson's "pet" banks. His request caused the Secretary of Treasury to resign and it wouldn't be until another is appointed that Jackson's order is carried through. Biddle, the Bank's President, responded by calling in loans to spark outrage against Jackson. However, this only made even more people against the National bank. -
Senate's Censure of Jackson
Senate was furious at Jackson for his order of "pet" banks, so in 1834, while mostly dominated by the Whig party, they voted to censure Jackson and declared his acts unconstitutional. Jackson denied the right of the Congress for the censure.. This would be the first and only time that the Senate would censure a US president. When Democrats took back control of Congress three years later, the censure was removed from the record. -
Specie Circular of 1836
Jackson did not like bank notes, so he wanted all money to be solely in gold or silver. After the expiration of the second national bank and the economic boom which caused a lot of paper money to be printed, the Specie Circular was issued requiring all public lands to be paid through gold or silver. This was made in response to the massive land speculation occuring in the west. Many farmers were angry as they couldn't buy land. It would be later appealed in 1838. -
Panic of 1837
Partly caused by the Specie Circular the previous year, the Panic of 1837 would occur in which prices of cotton and other goods sharply declined, unemployment rates increased, and banks closed. It was this economic depression that caused the public to turn against the Democratic party and set the stage for the upcoming election in in which another, newer, party would take control of office. -
The Election of 1840
Following the Panic of 1837, public scrutiny increased against the Democratic party, allowing for the rise of the Whigs to commence with the election of 1840. William Henry Harrison won the election. However, this win ended up backfiring on the Whigs as Harrison fell ill and died not too long after entering office, leaving Vice President John Tyler to take over the position and argue against recharters of the national bank. This would mean the complete end of the US national bank.