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Hamilton Established Federal Bank
Established the bank must be reestablished. -
2nd Bank in 1816
The bank had been chartered by Congress in 1816. Jacksonian Democrats saw it as a dangerous and corrupt special interest that favored rich investors. Many business leaders valued the bank, believing it promoted economic growth by providing a stable currency, paper money. They argued that a lack of confidence in money could cause serious harm to the economy. -
Jackson vetoed the renewal.
In 1832, they voted to renew the Bank's charter, but Jackson vetoed it. He denounced the Bank as unauthorized by the Constitution, subversive of the rights of the states, and dangerous to the liberties of the people. He opposed government action that would lead to advancements that expensed many. He believed that the rich and powerful had to often bent the acts of the government to fit their selfish desires. -
The Whigs
After bank supporters denounced Jackson as a power hungry tyrant trampling on the rights of Congress. Henry Clay and Danial Webster formed a new political party known as the Whigs. The Whigs were nationalists who wanted a strong federal government to manage the economy. They favored the American system of protective tariffs, internal improvements, and a national bank. -
Presidential election of 1832
The Whigs nominated Henry Clay but Jackson won by a landslide. Jackson completed his attack on the second bank by withdrawing all federal funds and placing them in state banks. Though its charter still had several years to run Jackson's actions weakened it greatly. -
Jackson's Third Charter
On the third reestablishment of the National Bank he never renewed it. -
National Politics after Jackson
The bank's destruction weakened the economy, relieved from federal regulation, state banks expanded, inflating prices with a flood of paper bank notes. The value of bank notes expanded from $10 million in 1833 to $149 million in 1837. The inflation greatly hurt the common people Jackson had promised to help. -
The Panic of 1837
When Jackson retired from politics Martin Van Buren was elected as president. Soon after taking office the economy suffered a severe panic triggered by Jackson's decision to stop accepting paper money for the purchase of federal land. This caused a sharp drop in land values and sales, resulting in hundreds of banks and business to go bankrupt. This also caused thousands of planters and farmers to lose their land. -
Election of 1840
The depression in 1837 revived the Whigs in the 1840 election they ran William Henry Harrison for president and John Tyler for vice president. The campaign was theatrical hosting big parades and using more creativity than honesty to make Harrison seem be a simple farmer. This persuaded voters into letting Harrison win presidency. A month after assuming office Harrison died and John Tyler became president. He rejected the Whigs policies and vetoed the restoration the Bank of the America.