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2nd Bank in 1816
After the first bank's charter expired in 1811, it was not removed. This led to the banking being run by the state's government, which led to inflation. Due to this, the states could no longer give the country the money that was needed. So, a second bank was made and was charted for 20 years. The newer states, territories, and poorer people did not like the new bank. -
Presidential Campaign of 1832
When the campaigning for the president started, there was a clear divide between the candidates and the country. The merchants and manufacturers wanted stable money. The regional banks and farmers wanted there to be less inflation while also increasing the amount of money made. Jackson easily won over Henry Clay because Jackson called the bank a "monster." This was also the first election where the political parties used nomination conventions. -
Renewal of the 2nd Bank
In July, the supporters of the Bank did not want it to expire when the charter said it would. So, they went to Congress and asked for it to be renewed. However, when it came to Jackson, he vetoed the bill. His reasoning was that it went against the Constitution and it would give too much power to the Bank. Already, it had too much market power because of its profits. He had a suggestion to either auction the Bank privileges off or create a fully government-owned Bank to replace this one. -
Andrew Jackson is Censured
Congress decided to censure Andrew Jackson from making decisions about the Bank of the United States, such as the deposits, because they believed he was no longer doing it for the better of the country. Not only that, but he also fired his Secretary of Treasury in order to do it. Instead of basing his decisions on the Constitution, he was making them based on his opinions. -
End of deposits in the Central Bank
After winning the election, Jackson decided to use his power. He decided that there would no longer be any government funds going into the second bank. Instead, they would redistribute the money into different state banks that would be nicknamed the "pet banks." -
First Attempt on a President's life
Andrew Jackson one day traveled to the Capital Wing to go to a Congressional funeral. As he left the place, Richard Lawernce started to fire at Jackson. Lawrence did miss, but he made history as the first person to attempt to kill a president. He would later not be found guilty and be put in an asylum. -
Species Circular
This was an executive order made by Andrew Jackson that made every payment for public land be given in gold or silver. He demanded this because there was no longer a national bank. So, the banking had gone all out of sorts. Jackson needed stable money and that would be silver and gold. The Species Circular is what directly led to the Panic of 1837. -
Panic of 1837
This was a major depression that affected the country. Wages, pay, and profits all dropped while unemployment rates rose. It would be eventually solved in 1841 by the second bankruptcy law, but the country would start to recover in 1843. The significance of the Panic of 1837 would be that the economy was not good and westward expansion had to be stopped for a while. -
Martin Van Buren inaugurated
President Van Buren gave his inauguration speech on this day. During his time as president, he helped navigate the country through the Panic of 1837. He also called a special session in Congress to help with the government's financial decision and not about the people's situation. -
Election of 1840
During the election, Henry Harrison won easily against President Van Buren. The main reason he won is because Van Buren had to be reelected during a depression. Not only that, but Henry Harrison was a war hero and had the Whig Party united.