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Chartering of the Second Bank of the United States
In 1816, following the end of the War of 1812, the U.S. Congress chartered the Second Bank of the United States. It was modeled after the First Bank of the United States, which had lost its charter in 1811. The Second Bank was granted a 20-year charter and was intended to address economic instability by regulating state-chartered banks and stabilizing the currency. -
Panic of 1819
The Panic of 1819 was the first major financial crisis in the United States. It was characterized by a collapse in land prices, a contraction of credit, and widespread bankruptcies. Many attributed the crisis to the policies of the Second Bank, which had tightened credit and called in loans. -
Andrew Jackson's Election
Andrew Jackson, a war hero and advocate for the common man, was elected as the seventh President of the United States in 1828. He had a deep distrust of banks and was determined to challenge the power of the Second Bank -
Veto of the Second Bank's Recharter
President Jackson vetoed the bill to recharter the Second Bank of the United States on July 10, 1832, asserting that it was unconstitutional and favored the wealthy over the common people. -
Emergence of the Whig Party
The Whig Party emerged in the United States in 1833 as a political force in opposition to President Andrew Jackson's policies, including his stance on the Second Bank of the United States. Figures like Henry Clay and Daniel Webster played key roles in the formation of the party, advocating for a stronger federal role in the economy and the reestablishment of a national bank. -
Roger B. Taney's Appointment
President Andrew Jackson appointed Roger B. Taney as Secretary of the Treasury on September 23, 1833. Taney played a significant role in implementing Jackson's policies, including the removal of federal deposits from the Second Bank. -
Removal of Federal Deposits
Jackson's administration began the process of removing federal deposits from the Second Bank and placing them in state-chartered banks starting on October 1, 1833. This move further escalated tensions. -
The Bank's Charter Expires
On January 1, 1836, the charter of the Second Bank of the United States officially expired, transforming it into a private institution. Despite losing its federal charter, the bank continued to operate as a state-chartered institution in Pennsylvania. -
Specie Circular Issued
President Andrew Jackson issued the Specie Circular, which required payment for government land to be made in gold or silver ("specie") rather than paper money. This policy further aggravated the Panic of 1837 and had a significant impact on the nation's financial system and the availability of hard currency. -
Martin Van Buren's Inauguration as President
On March 4, 1837, Martin Van Buren was inaugurated as the eighth President of the United States, succeeding Andrew Jackson. Early in his presidency, he faced the challenge of addressing the economic crisis that would later become known as the Panic of 1837. -
Panic of 1837
The Panic of 1837 was a severe financial crisis that began in May 1837, characterized by a collapse in the financial and banking sectors. It was fueled by land and railroad investments, the issuance of unregulated paper money by state-chartered banks, and President Andrew Jackson's policies, including the removal of federal deposits from the Second Bank of the United States. This crisis led to widespread economic hardship and bank failures. -
Election of William Henry Harrison
On November 3, 1840, William Henry Harrison, the Whig Party candidate, was elected as the ninth President of the United States in a presidential election. His victory marked the end of the Bank Battle era and signaled a shift in American politics and economic policy. Unfortunately, Harrison's presidency was brief, as he died just 31 days into office.