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The Second National Bank
In 1816, The Second National Bank was chartered by Congress. This bank was very much like the First National Bank. Many of the newer states didn't like the idea of the Second National Bank, especially since the states already had their own currency so with the creation of the bank, their currency would be considered worthless. The people didn't like the bank since it also brought in only one currency. -
Panic of 1819
The panic of 1819 was the first financial panic that swept across the country. The growth in trade that followed the War of 1812 came to an abrupt stop. Unemployment mounted, banks failed, mortgages were foreclosed, and agricultural prices fell by half. Investment in western lands collapsed. The economy was going downhill which affected the U.S. banking system. -
Andrew Jackson gets Elected as President
Andrew Jackson ended up winning the Presidential Campaign in 1828 and gets elected as President. He ended up defeating John Quincy Adams with more electoral votes. Andrew Jackson was also against the idea of the National Bank, he distrusted them. -
Creation of the Whigs Party
The creation of the Whigs Party were political opponents of President Jackson, they emerged around the 1830s. They called themselves that due to being a British term to signify Jacksons "monarchy rule". The party was made up of Republican's and Northerners, as well as people who aided the National Bank. -
Election of 1832
The Election of 1832 was an political debate between Andrew Jackson and Henry Clay. The election revolved around the topic of the Second National Bank. Henry was for the bank, while Jackson was against it because he believe that the bank had to much power. Clay tried vetoing the bank bill but failed and resulting in Jackson defeating Clay and receiving his second term in office. -
The Recharter Bill Vetoed
On July 10, 1832, President Jackson vetoed the Recharter Bill. The Bill Vetoed was from both Henry Clay and Daniel Webster wanting to pass a bill chartering the second national bank. The Bill was sent back to Congress where it did not have the two-thirds majority support necessary to override Jackson’s veto. They wanted to force Jackson to chose whether he was for the bank or against it. Since the bank was such a controversial issue. -
Pet Banks
The term “Pet Banks” was a nickname given to the state banks that were given more power because they were loyal to Andrew Jackson. This was due to the Department of Treasury giving them surplus funds so they can remove the national bank. The Senate didn’t allowed this so they ruled it unconstitutional. -
The Second National Bank ends
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. This was due to distrust on the bank since he felt as if they had too much power. He ended the bank by removing all federal funds and placing them in "pet banks" -
Specie Circular Act
The Specie Circular Act was an executive order issued by President Andrew Jackson requiring that payment for the purchase of public lands be made exclusively in gold or silver. This leads to the Panic of 1837 with inflation problems. -
Panic of 1837
The Panic of 1837 was an financial crisis that led to unemployment and inflation. The rise in inflation led to many investors to panic and many banks to close due to insufficient reserves. This caused states to go into debt and even goods prices went up. There was also quite a bit of hostility from the Whigs party. -
Election of 1840
The Election of 1840 was the presidential election between William Henry Harrison against Van Buren during an economic depression. Van persuaded Congress to make an uncovered treasury system. However, Harrison won anyways due to him being known as an hero and his Whig party unifying to vote for him. He also got more electoral votes than Buren. Then Harrison becomes President.