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The Second Bank of the United States
The Second Bank of the United States was established to stabilize the nation's exonomy and regulate the currenct. The bank had the authority to issue banknotes, control interest rates, and manage the nation's finance. However, it existence was controversial, with critics arguing that it gave too much power to the federal government and favored the wealthy elite. -
The Panic of 1819
The Panic of 1819 was a financial crisis that was triggered by a combination of factors, including overexpansion of credit, and a collapse of the global market for agricultural products. As a result, banks failed, businesses went bankrupt, and unemployment rates soared. The panic had a profound impact on the economy, leading to a prolonged period of economy hardship for many individuals and families. -
Election of Andrew Jackson
Jackson, a war hero, champion of the common man, and a fierce opponent of the bank ran against incumbent President John Quincy Adams. Jackson believed that the bank had too much power and favored the wealthy elite over the common people. He campaigned on a platform of dismantling the bank and giving more economic opportunities to the working class. Jackson's election was seen as a mandate to take action against the bank, and once in office, he worked to undermine its influence. -
The vetoes of the Second Bank
Jackson believed that the bank had too much powers and favored the wealthy over the common people. So he vetoed the recharter of the bank, arguing that it was unconstitutional and undemocratic. Jackson saw the bank as a threat to the economic interests of the working class and believed that it concentrated too much power in the hands of a few. His vetoes sparked controversy and led to a heated debate over the role of the federal government in regulating the economy. -
Whig Party
The Whig Party was a political party in the United States, they believed in a strong federal government, protective tariffs, and internal improvements. They supported the American System, which aimed to promote economic growth and national unity. The party drew support from various groups, including anti-Jackson Democrats. However, the Whig Party struggled to maintain unity and eventually dissolved in the 1850s due to internal division over issues. -
Pet Banks
The pet banks were state banks that received federal deposits during President Jackson's administration. Since Jackson believed that the Second Bank had to much power and favored the wealth, he decided to remove federal funs from the national bank and distribute them among various state banks, which became knowns as the pet banks. This move was intended to weaken the influence of the national bank and give economic opportunites to the commmon people. -
Specie Circular Act
The Specie Circular Act was an executive order issued by President Jackson. It required that all public lands be purchased with gold or silver coins, rather than paper money or banknotes. The purpose of this act was to curb the rampant speculation and land sales fuled by easy credit and paper money. By demanding payment in specie, Jackson hoped to stabliize the economy and prevent the overextension of credit. However, it had consequences it cause a decrease in land sales, and economic downturn. -
The Charter of the Bank of United States expires
The Charter of the Bank of United States expired in 1836. The expiration of the charter meant that the federal government would no longer have a centralized institution to regulate the nation's banking system. This led to the proliferation of state-chartered banks, which resulted in a more decentralized banking system. -
The Panic of 1837
The Panic of 1837 was a severe economic crisis that occurred in the United States. it was triggered by a combination of factors, including the Specie Circular act. The panic led to widespread bank failures unemployment, and a sharp decline in economic activity. Many people lost their saving, businesses went bankrupt , and the country experience a prolonged recession. But the panic highlighted the vulnerablilites of the banking system and need for better financial regulations. -
Election of William Henry Harrison
Harrison was a member of the Whig Party, he was nominated as the Whig candidate and won the election. As a Whig, Harrison supported the party's pro-bank stance, they believed it was necessary for the stability of the nation's economy and he also supported its belief in a strong central government.