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Bank Recharter Bill
Vetoed by Jackson, the Bank Recharter Bill was the proposal of the renewal of the National Bank. The bill created controversy over where power should lie when it comes to national currency and whether or not the bank was Constitutional. -
Jackson's Veto
Jackson vetoed the Recharter Bill, causing the belief that he was abusing his power to surface. -
Election
Presidential election between Jackson and Clay. Clay supported the National Bank, while Jackson was against it. Jackson won the election. -
Removal of Federal Deposits
In an attempt to make the National Bank collapse faster, Jackson moved federal money to "pet" or state banks. -
Biddle Responds
Biddle responded to Jackson's veto by rallying citizens who also supported the recharter. Biddle claimed Jackson was abusing his power by vetoing the Bill after Congress had passed it. -
Speculative Boom
When money was moved closer to the people, they assumed they were becoming wealthier and abused and overspent their money. This lead to the Crash of 1837. -
Specie Circular Act
Required land to only be purchased in gold or silver. This led to a decline of paper money's value, and the eventual crash of the economy. -
The Panic of 1837
Period of deep economic repression caused by the collapse of the National Bank, overspending, and inflation. The crash lead to a decrease in the value of American goods, bankruptcy, and the collapse of state banks.