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Second Bank
After the First National Bank had its charters unrenewed, a Second National Bank was made in the federal government. The state banks had issued notes of renewal to the federal government, so the federal government responded by making the Second National Bank. However, this was met on mixed grounds as Southern and Western states opposed the Bank due to having no expressed powers to create one, while the North favored it by implied powers. -
Panic of 1819
Credit was now near impossible to come by, as it became unavailable to most Americans. Banks were failing due to lack of specie reserves, which led to businesses failing severely. Bankruptcy laws were also taking precedent, causing much distrust and animosity towards banks, bankers, and paper money. The depression lasted for two years before it was resolved. -
Election of 1828
Andrew Jackson was elected President against John Quincy Adams. His objections against the National Bank, claiming it was unconstitutional due to expressed powers not saying they were permitted to create one, led to the rise of the Bank Battle. -
Reestablishment of the Bank
Before the election, Henry Clay and Daniel Webster decided to push Jackson into a pro or anti-bank position, considering that he was constantly attacking the Second National Bank as a whole. To do this, they passed a bill that renewed the Second National Bank, to which Jackson vetoes it. -
Diverting of Federal Revenues
Jackson had two Treasurers to remove federal deposits from "pet banks" in order to kill off the banks as a whole. However, the first was fired after refusing to take action and the second chose to resign after refusal. The third, Roger B. Taney, executed Jackson's command, to which the Congress would intentionally fail to ratify him as Treasurer a year later. -
Whigs
The Whigs were the political opponents of Jackson, claiming that his rule was "monarchial". The main leaders were Henry Clay and Daniel Webster, who acted as the voice of reason. However, by the time elections came around, they could not participate because they were still too divided by their differences. -
Deposit and Distribution Act
The Deposit and Distribution Act gave state banks between $30-$35 million based on population after the Specie Circular. This was meant to provide banks with exchangeable currency that did not come from the National Bank, as Jackson intentionally let it die due to his beliefs against it. -
Specie Circular
The Specie Circular of 1836 required people that wanted to purchase public land to pay in either gold or silver. Jackson wanted to prevent excessive land speculation and destroy the growth of paper money so the banks could no longer be in place. He would later have offices that receive public money in August only accept specie, leading to the Panic of 1837. -
Panic of 1837
The Panic of 1837 was sprang shortly after the Deposit and Distribution Act of 1836. Due to the lack of money being able to go into businesses because of the Specie Circular, bankruptcies and foreclosure became prominent. Many businesses closed and unemployment increased drastically, leading to riots against the government. -
Election of 1840
The election was between Martin Van Buren and William Henry Harrison. Van Buren acted against the government, providing little to no aid for businesses within the United States prior to the election. With support from the Whigs, Harrison was able to win the presidency and was deemed as a hero.