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Charter of the Second Bank of the United States
This was the Second US Bank chartered by President James Maddison and molded after Alexander Hamilton's First National Bank. This bank again was chartered for 20 years and again was unpopular in the new states, territories, bankers who despised the monopoly over the Union's credit and currency, and among the poorer people who believed once again that the bank represented the interests of the wealthy.
Picture Credit: https://www.federalreservehistory.org/essays/second-bank-of-the-us -
Panic of 1819
This was the first widespan financial crisis in the US. This slowed westward expansion and was followed by an economic collapse that lasted through 1821. It was caused by the Bank's lending process, there were too many bank notes and credit lines being released. When banks had to call the loans back, farms became bankrupt causing the loans to be paid and banks failed. -
Early Recharter Bill
The Second Bank of the US was not set to expire until 1836 but people who favored the bank such as Henry Clay proposed to recharter the bank earlier than expected to place Jackson on unsolid political grounds.
Picture Credit: https://www.federalreservehistory.org/essays/second-bank-of-the-us -
Bank Renewal Vetoed
Even though this bank like the first was successful Jackson had a deep-seated view that made him distrust the bank. When the bank supporters in Congress pushed for an early charter renewal Jackson denied the plea as he believed the bank was too powerful. This upset many businessmen in the North, but Jackson's supporters were pleased as they thought he was fighting for the common people.
Picture Credit: https://www.moaf.org/exhibits/checks_balances/andrew-jackson/broadsheet -
Election of 1832
Andrew Jackson is re-elected President of the US and defeated Henry Clay.
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Creation of the Whig Party
This party was formed to in the 1840s in response to Jackson's refusal to fund the Second National Bank. They oppose the policies of Andrew Jackson and were led by Henry Clay.
Picture Credit: https://twitter.com/ModernWhigs/status/1072247020688171008 -
Ending the Second National Bank
Jackson ordered the demise of the Second US National Bank removing all federal funds in the bank and stopping all deposits of federal money. This money was then placed in select banks or 'pet banks'. This was the final act of the 'Bank War'.
Picture Credit: https://learningenglish.voanews.com/a/andrew-jackson-nicholas-biddle-henry-clay-bank-united-states/1749399.html -
Pet Banks
The creation of 'pet banks', a derogatory term for state banks that were chosen by the government to receive treasury funds, was to completely eliminate the use of the Second National Bank. But these banks backfired failing to regulate the economy and helped cause major economic panic.
Picture Credit: https://www.loc.gov/pictures/item/2008661368/ -
Specie Circular
This was an executive order issued by Jackson in 1836. It declared that government land could no longer be paid in bank notes but had to be paid in gold and silver. This resulted in demands for species, money in the form of coins, that banks could not fulfill causing bank failures, credit reductions, and increased unemployment. This was a major cause of the panic of 1837.
Picture Credit: https://www.google.com/imgres -
Panic of 1837
This was another US financial crisis that lasted until the mid-1840s. Profits and wages went down, westward expansion halted, and unemployment increased. This happened at the beginning of Van Buren's presidency which inherited Jackson's financial issues. This was caused by get-rich-quick schemes, Jackson's Bank War, and the Specie Circular. -
Election of 1840
In this Presidential election, the Whig party represented by General William Henry Harrison defeated President Martin Van Buren. The Whig party used the strategy of avoiding sensitive national issues and this marked the first time a non-Democrat or Republican won the election.
Picture Credit: https://en.wikipedia.org/wiki/1840_United_States_presidential_election