-
2nd Bank
This bank was proposed by James Maddison, as a way to pay for the war with Britain. It was chartered for 20 years. The idea of it was unpopular among the people, some people resented its virtual monopoly over the country's credit and currency. Some didn't like the bank because it represented more interest of the wealthy people. The thought of a bank brought many controversy and division for the people. Jackson distrusted the idea of a bank, and him and his supporters saw the bank as a "monster". -
Recharter bill
The Banks recharter bill was not due until 1836, but do to clays and Websters "need" to see Jacksons opinion on the bank they decided to send an early recharter bill. So the early recharter bill for the national bank was sent to be signed, but Jackson responded it with a veto. -
Henry Clay v. Jackson
In the presidential campaign of 1832, Henry clay tried to bring up Jacksons bank veto in order to create an issue, but instead it lead Jackson to victory. Jackson won with 219 electoral votes to clays 49. This made Jackson win a second term as president. -
Jackson's veto
The recharter of the 2nd bank was vetoed by Jackson. He returned the bill unsigned and left a message to congress announcing his veto and declaring that the bank was not authorized or allowed by the constitution, that they contradict the rights of the states, and endanger the liberties of the people. Jackson contradicted the ruling in McCulloch v. Maryland, were it ruled that the bank was constitutional. -
Pet Banks
Pet banks were created when Jackson ordered his treasury secretary to divert federal revenues for the Bank of the U.S. to select state banks. This was Jacksons attempt to eliminate U.S banks. They did not provided overview or regulation of small banks that did easy credit or loose money. These banks were loyal to Jackson and operated through "wildcat banking" scheme by giving people unregulated loans. They had a poor business and leadership, which lead to the contributed of the panic of 1837. -
Biddle's response
Biddle was president of the bank. So Biddle's response to Jackson's pet banks was that he reduced loans and called in debts. He tighten the nations money supply. Also, he said that he will not allow Jackson to have his way with the bank, like he did with the Indians and imprisoned judges. But his effort backfired because ensuing finical distress cause more suspicion of the Banks power. -
Whig Party
The whig party was organized by Jacksons opponents, this party was named after the British term for "opponents of monarchial power". The whigs most brilliant statesmen were Henry Clay and Daniel Webster. The whig-dominated senate suppressed Jackson for his action of removing federal deposits. -
Jackson Specie Circular
During this time Jackson prohibited the payment for public lands to be payed for anything that is not gold or silver. This curbed inflation and cause many Americans to exchange paper bills for gold and silver. This also led to many banks being forced to close down because they lacked hard currency, which triggered a financial crisis. -
British raised interest rates
During 1836, British increased interest rates, which lead to the drastic reduce of the investment in the American economy. Forced some states to default on loans from forgiven investors. This also was a cause to the finical depression. -
Panic of 1837
The panic of 1837 was a financial crisis due to people panicking because of the high inflation, and Jacksons policies of hard currency, such as favoring gold and silver. Also, because of the many banks closing due to insufficient reserves. -
Independent treasury system
This system was proposed by Van Buren, due to the fear of the federal government loosing funds. This system would have federal funds locked up in insulated sub treasuries, Which was something different from the banking system. But this eventually led to the banking system being deprived of funds that could've aided recovery for the finiancal depression. -
Election of 1840
The election was between a whig candidate, William Henry Harrison against Martin Van Buren, a democrat. Harrison won 234 electoral votes to Van Burens 60. This election was the whigs trying to unseat the democrats who have been in control since the election of 1828. The whigs saw similarities between Harrison and Jackson, both were a military hero and a frontiersman. Democrats wanted a restricted gov. and the whigs wanted a strong gov. Harrison was the first oldest president to die in office.