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Second Bank of the United States
The Second Bank was chartered for 20 years. Many newer states did not care for this bank because they thought that it put a monopoly on the credit and currency of the nation. They also thought that the bank only benefited the wealthy people. Jackson was against the bank as well and tried to veto the monopoly and the special privileges of the bank, but the veto had failed. -
Bank Recharter
Henry Clay and Daniel Webster wanted to renew the bank, so they presented a new bill to Congress for a bank recharter. The bank wasn’t supposed to be renewed for a few more years, but they did it early to make sure that the bank was safe. If Congress had passed the bill to keep the bank, they thought that Jackson wouldn’t veto it. -
Jackson's Veto
Jackson did end up putting a veto on the bank recharter. Jackson states that the bank was unconstitutional and thought that it gave too much power to financial markets. He also said that the bank mainly benefitted the wealthy people, and that wasn’t fair to the common people. Many Northerners did not like this decision, and thought that Jackson was abusing his power. -
Jackson’s removal of federal deposits
Jackson decided that he was going to remove federal deposits and withdrawals from the bank in order to destroy it. The government had ended up putting its money in little banks in the states called “pet banks”. The money was then used for government expenses. Because of this, there was an increased use of paper money, which the democrats supported. -
Creation of the Whig Party
A new political party is created, and they're called the Whigs. This is founded by the Republicans and the Jacksonian Democrats. -
Specie circular
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Speculative Boom
Since the US bank was no longer a thing anymore, the nation’s economy had started to fail. But with the use of paper money, the economy started to get better. There was an increase on the national goods as well, but this would soon all go downhill and lead to the crash of 1837. -
Crash of 1837
In the Crash of 1837, the economy had basically failed. Speculators had started to buy more land in the west, and they used loans from the bank in order to pay the fees. The banks used to pay with paper money, but now they needed to pay with gold. People had started to borrow gold from the banks, and soon the banks ran out of gold. This leaded to many businesses going bankrupt, banks closing, people lost jobs, and the economy was suffering. -
Election of 1840
This election was against Henry Harrison and Van Buren. Van Buren was a really wealthy man and was above common people. So, Harrison decided to be seen as a commoner so he can get more votes from the lower class people. The Whigs had campaigned by speaking rudely about everything that Van Buren had did. These campaigns was successful because Harrison had ended up winning the election. This election is significant because it was the first time in a while the the Democrats had won an election.