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Creation of the Second National bank
The Second US Bank, established by President James Madison, monopolized Union credit and currency, causing disapproval from bankers and poorer citizens. It regulated credit, controlled inflation, and established the federal government's role in financial regulation. -
Panic of 1819
The Panic of 1819 was the first major financial crisis in the US, triggered by factors like overproduction, overspeculation, and transportation collapse. It marked the end of the post-Revolutionary War economic boom, led to widespread unemployment and poverty, exposed financial system weaknesses, and influenced the emergence of a two-party political system. It also led to Jacksonian Democracy and increased land demand. -
Early Recharter Bill
The Second Bank of the US, favored by Henry Clay, was rechartered earlier than expected, putting Jackson on unsolid political ground. The significance of this is that Jackson was put on unsolid political ground. -
Bank Renewal Vetoed
Senator Henry Clay recommended early rechartering of the Bank, which Congress approved in 1832. Jackson vetoed the law, claiming it was illegal, created a monopoly for the wealthy, and exposed the government to foreign influence. His veto message was a controversial statement of the Jacksonian movement's social theory, which pitted the common people against the rich, therefore favoring the wealthy. -
Election of 1832
Andrew Jackson was re-elected President of the US and defeated Henry Clay. The significance of this event is that the 1832 presidential election was an important turning point in American politics since it was the first to use a national selection convention, a rematch between Andrew Jackson and Henry Clay, and an audience to vote on Jackson's policies. -
Creation of the Whig Party
In the 1840s, a party led by Henry Clay emerged in opposition to Andrew Jackson's refusal to fund the Second National Bank. The Whig Party, formed in the 1830s, opposed the populist policies of President Jackson and his Democratic Party, advocating for a strong federal government and conservative policymaking. They won two presidential elections. -
Ending the Second National Bank
Jackson ordered the Second US National Bank's demise, ending the 'Bank War'. Rejecting its restructuring in 1832, it closed in 1836, strengthening state control but causing financial instability. -
Pet Banks
The government established 'pet banks' to replace the Second National Bank, but they failed to regulate the economy, leading to a major economic panic in 1837. Despite expanding banks and loans, they lack national bank stability, causing financial instability. -
Specie Circular
In 1836, Jackson issued an executive order requiring government land payments in gold and silver, leading to increased demand for coins and bank failures. This caused credit reductions, increased unemployment, and the panic of 1837, which was a major cause of the change. -
Panic of 1837
The 1837 Panic was a major financial catastrophe that ravaged the American economy, resulting in widespread poverty and misery. This was significant because it emphasized the dangers of uncontrolled banking and spurred disputes about the role of the government in economic issues. The crisis had huge political consequences, impacting both the US economy and politics. -
Election of 1840
The 1840 Presidential election saw the Whig party, led by General William Henry Harrison, defeat President Martin Van Buren, marking the first time a non-Democrat or Republican won the election. This election introduced new campaign strategies, marketing tactics, and large-scale conventions, emphasizing hard work, self-reliance, and charm. The Whig Party ultimately won, marking a new era in American politics.