Jackson and the Bank

  • Bank Recharter Bill

    Andrew Jackson vetoed the bill re-chartering the Second Bank in July 1832 by arguing that in the form presented to him it was incompatible with “justice,” “sound policy” and the Constitution.
  • Jacksons Veto

    This bill passed Congress, but Jackson vetoed it, declaring that the Bank was "unauthorized by the Constitution, subversive to the rights of States, and dangerous to the liberties of the people." After his reelection, Jackson announced that the Government would no longer deposit Federal funds.
  • Election of 1832

    The election saw the first use of the presidential nominating conventions, and the Democrats, National Republicans, and the Anti-Masonic Party all used conventions to select their candidates. Jackson won re-nomination with no opposition.
  • Jackson removes Federal

    President Andrew Jackson announces that the government will no longer use the Second Bank of the United States, the country's national bank, on September 10, 1833. He then used his executive power to remove all federal funds from the bank, in the final salvo of what is referred to as the “Bank War."
  • Biddle Response

    In response, Biddle restricted the Bank's loans, tightening the nation's money supply in an effort to inspire public outrage toward Jackson's policies and force the recharter. Instead, Biddle's plan backfired, and the ensuing financial distress inspired greater suspicion of the Bank's power.
  • Jackson's Pet Banks

    Jackson hated the central bank of the United States, and in 1833, he killed it. He took all of the money out of the central bank, and distributed it to many smaller state banks called pet banks. These pet banks failed to regulate the economy and contributed to a massive economic panic.
  • Speculative Boom

    Supporters of the Bank in the Senate were furious and took the unprecedented step of censuring Jackson. The President held fast, however, and when the Bank's charter expired in 1836, it was never renewed.
  • Specie Circular

    An executive order issued by President Andrew Jackson requiring that payment for the purchase of public lands be made exclusively in gold or silver.
  • Crash of 1837

    All total bank assets fell by almost half, credit dried up and business slowed to a crawl.