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Second bank
The second US bank effectively acted in managing federal finances, holdings its debts, deposits, and the creation of circulating currency's revision. War debt had crippled national finance, and the second bank was meant to repair and oversee the healing of its economy. Jackson believed that a national bank was unconstitutionally against state rights, and fought the power it gave to small groups. -
1819 Crisis
The Second Bank had the tendency to over-loan bank notes, causing shortages and inability to cash checks/notes. This caused the devaluing of money, made it harder to purchase land, job availability went down, and overall the economy suffered, slowing US expansion. -
Jackson’s Election
Jackson’s election was a big part of conflict during this time, especially considering his antagonism towards the second bank, and national banks in general. He went against the recharging of a new bank, and opposed the bank leaders. -
Veto of Rechartering
Congress voted to recharter the second national bank in favor of its financial benefits, but Jackson vetoed it very quickly. He has a strong apprehension for public national banking and its power over citizens. -
Jackson’s Re-election
After being re-elected, President Jackson appointed Roger Taney as Secretary of Treasury. He proceeded to defund banking systems without the approval of the other government branches from the President’s wishes, outraging many citizens. -
Jackson Defunding
Jackson made the executive decision to remove public funds from the national banks and siphoned cash into many state banks. He disallowed national banks to issue loans and important transactions, effectively closing the bank by 1836. -
Whig Party
Andrew Jackson was seen as opposition to many small groups of people, eventually forming under the Whig Party. Jackson had removed the Republican Party in his success, and the Whig party was against all he stood for at the time. The newly formed party wished for financial improvements and increased tariffs, and ran against Jackson’s party in later elections. -
Van Buren’s Election
Martin Van Buren continued Jacksonian policies, and agreed on the points of the bank opposition. He upheld those values, but catapulted the nation into an economic disaster in 1837. -
1837 Crisis
New York City banks relied on the storage of precious metals for some types of commerce, but the national banks had a tendency to overspend and overland to citizens without backing with real currency. These banks ran out of gold and silver, no longer being able to use those metals for coinage in monetary redemption, and many redeemed all of their cash from banks. -
Harrison Election
William Henry Harrison was elected under the Whig Party. He opposed Jackson’s values entirely, against his opposition of the bank and his financial avoidance. He attempted to reverse many of Jackson’s decisions, but died one month into office holding, the next president returning to Jackson’s ideals.