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Chartering of the Second Bank of the United States
In response to the toll the War of 1812 took on the American economy, President James Madison signed an act into effect that established the Second Bank of the United States with a 20-year charter (meaning that it would hypothetically expire in 1836), 16 years after the First National Bank had been closed down. Initially, the president of the bank was William Jones. -
Panic of 1819
The American economy had their first widespread major economic crisis. Some causes of this were over-expansion, cheaper prices for European imports, and declining exports, among other things. This panic did not end until 1822, but it diminished trust in the National Bank due to the fact that this was the worst recession they had ever had. -
Andrew Jackson's Election
Andrew Jackson, war hero and known detractor of the National Bank, won in a landslide against John Quincy Adams in an election many considered revenge for the travesty that was 1824. Some feared that he would end up destroying the National Bank, due to his prior statements on the matter. -
Jacksons Address to Congress (1)
In his inaugural address to Congress, President Jackson addressed various matters, prominently touching upon the National Bank. Jackson expressed his opposition to the bank, highlighting its alleged unconstitutionality and its perceived failure in achieving its primary goal of maintaining a stable currency. He urged Congress to quickly evaluate the bank's constitutionality and suggested that if the United States required this institution, its charter should be entirely reconsidered and revised. -
Veto of the Second Bank's Recharter
Politicians who opposed Jackson, such as Henry Clay and Daniel Webster, passed a bill rechartering the Second National Bank, as a means of testing Jackson's allegiances and making him be clear with his opinions. In move that surprised NOBODY, he vetoed it, calling the bank a "monopoly" created to make the rich richer. During the Campaign of 1832, Henry Clay tried making the bank veto an issue. However, the opposite happened. Jackson swept Clay 219-49 in the electoral college. -
Formation of the Whig Party
As a direct opposition to the Jackson administration, politicians formed the Whig Party. They supported almost every single thing that Jackson opposed, and their main leader was Henry Clay, who was used to opposing Jackson. -
Removal of Federal Deposits
Andrew Jackson was eager to hasten the end of the National Bank. As the Digital History textbook put it, "he ordered his Treasury secretary to divert federal revenues from the Bank of the United States to selected state banks, which came to be known as "pet" banks." His Secretary of Treasury, and his assistant too, both resigned on the spot in anger. -
The Bank's Charter Expires
Finally, at the advent of the New Year, the Second National Bank's charter expired, ending the institution. This caused panic among certain financial people, fearing the worst. -
Specie Circular
In another attack against banks, he passed the Specie Circular. He prohibited payment for public lands using any material other than gold or silver. This was a big blow for people who only had paper money, considering that they were now unable to buy anything. -
Election of 1836
This was the first election in which the Whig Party ran. They gave it a good go, but ultimately Jackson's successor Martin Van Buren ended up victorious. This sparked fears of further economic incidents within America. -
Panic of 1837
Barely after the election of Van Buren, a deep economic depression struck the nation. Cotton prices halved, and over 250,000 New Yorkers were reduced to raiding factories an warehouses for food and shelter. This lasted until the mid-1840s, not helped by Martin Van Buren's response. He refused to provide government aid to businesses. -
Presidential Election
During the 1840 election, the Whig Party's candidate, William Henry Harrison, managed to secure a surprise victory over Van Buren. Despite his popularity in the electoral college, he only got 5% of the popular vote. A slogan from that era was "Tippecanoe and Tyler, too." This election marked a departure from political tradition. It was also a significant moment, as it would be the only time the Whigs won. Tragically, Harrison got pneumonia during his speech and died 31 days into his presidency.