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Bank Veto aka Bank War
Andrew Jackson vetoed the bill re-chartering the Second Bank in July 1832 by arguing that in the form presented to him it was incompatible with “justice,” “sound policy” and the Constitution. Jackson also believed the Bank of the US was unconstitutional, noting that while there was precedent for a federally chartered bank there was also precedent for not renewing its charter. -
Removal of money from the Bank
Jackson also ordered the federal government's deposits removed from the Bank of the United States and placed in state or "PET" BANKS. Biddle retaliated by making it more difficult for businesses and others to get the money they needed. This caused an economic contraction at the end of 1833 and into 1834. -
Whig Party
The Whig party was founded by individuals united only in their antagonism to Jackson's war on the Second Bank of the United States. Leaders included, Clay, Webster, and William Seward. These were the political opponents -
Second National Bank Expires
Its charter expired, the Second Bank of the United States ceases to operate as a national bank. It receives a new charter from the state of Pennsylvania and reopens as the Bank of the United States of Pennsylvania. -
Panic of 1837
The Panic of 1837 was a financial crisis in the United States that touched off a major recession that lasted until the mid-1840s. Profits, prices, and wages went down while unemployment went up. Pessimism abounded during the time.
