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Charter of the 2nd Bank in 1816
As a way to recuperate from the losses incurred during the War of 1812, President James Madison signed an act that established the Second National Bank for 20 years. This bank was unpopular from the beginning and was seen by newer states as a way to monopolize currency and empower the rich. -
Panic of 1819
This crisis resulted in widespread unemployment, bank failures, foreclosures, and a sharp drop in agricultural prices. Property values plummeted across various states, and thousands were sent to debtors' prisons. Urban poverty became a pressing issue, with paupers multiplying in cities. The causes included declining cotton prices, credit contraction by the Bank of the United States, land purchase payment requirements, foreign competition closing factories, and more. It affected people nationwide -
Election of 1828, Election of Andrew Jackson
Andrew Jackson was elected president and caused people to worry over whether the National Bank would stay active because of Jackson's previous statements. -
Jackson's Inaugural Address
In Jackson's Inaugural Address to Congress, He addressed various things but prominently talked about the Bank. He made his opposition to the bank known stating that it was unconstitutional and would fail in maintaining a stable currency. Jackson urged Congress to reevaluate the National Bank and get them to revise its charter. -
Veto of the Second Bank Charter
Henry Clay and Daniel Webster passed a bill to recharter the National Bank as a way to test Jackson's beliefs. Jackson went on to veto this bill calling the bank a monopoly. Henry Clay later went on to use this veto as a way to hurt Jackson during the Election of 1832, however, Clay was unsuccessful and ended up losing to Jackson. -
Whig Party
The Whig Party was a political party in the United States during the 1830s to the 1850s. It opposed President Andrew Jackson and the Democratic Party, advocating for a stronger federal government, protective tariffs, and internal improvements. The party dissolved in the 1850s due to sectional tensions over slavery. This party was led by Henry Clay who wanted to force Jackson into a stance on the bank and keep the National Bank. -
Pet Banks
Jackson wanted to dismantle the power of the national bank and to do so he withdrew federal deposits from the Second Bank and placed them in state-chartered banks, often referred to as "Pet Banks" due to their favorable treatment. However, the "Pet Banks" system had its drawbacks. It led to an increase of state banks, which were inadequately regulated and contributed to financial instability. It also contributed to the economic volatility of the time, including the Panic of 1837. -
Specie Circular of 1836
The Specie Circular was a significant economic policy implemented by President Andrew Jackson in 1836. This executive order mandated that public lands in the United States could only be purchased using gold or silver coins, known as specie, rather than paper money or banknotes. The intent behind this policy was to curb rampant land speculation, ensure that land sales were conducted with sound currency, and address the problem of excessive land purchases using inflated paper currency. -
Panic of 1837
Caused by land speculation, economic threats, and the Specie Circular he consequences of the Panic of 1837 were severe. Businesses closed, unemployment soared, and poverty rates increased. Many people lost their homes, jobs, and savings. The crisis had political ramifications as well, leading to debates over economic policy and government intervention in the economy. It also fueled the rise of populist movements and the emergence of new political parties, such as the Whigs. -
The Election of 1840
The 1840 election saw Whig William Henry Harrison defeat incumbent Martin Van Buren. Harrison's populist campaign and catchy slogans like "Tippecanoe and Tyler Too" played a crucial role in his victory, capitalizing on economic woes during Van Buren's presidency. Harrison's short-lived presidency led to John Tyler's presidency and tensions with the Whig Congress. This election saw the only victory of the Whig Party.