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2nd Bank in 1816
The Second Bank of the United States was chartered in 1816, following the economic instability after the War of 1812. This was created to stabilize currency, regulate credit, and control inflation, and was helped shape by the First Bank. The Bank held federal funds and acted as the government's financial help. However, it soon sparked controversy, with President Andrew Jackson opposing it during the "Bank War," leading to its expiration in 1836 when its charter expired. -
McCulloch v. Maryland
McCulloch v. Maryland was a landmark Supreme Court case where the Court, led by Chief Justice John Marshall, said that Congress had the authority to create the Second Bank of the United States under the "Necessary and Proper" Clause of the Constitution. Maryland had attempted to tax the bank, but the Court ruled that states could not tax federal institutions,establishing the supremacy of federal law over state law. This decision helped strengthened federal power and set a stage for future cases. -
Gibbons v. Ogden
This was a Supreme Court case that reinforced the federal government's authority over interstate commerce. The case involved an issue between Aaron Ogden, who had a state-granted monopoly to operate steamboats in New York waters, and Thomas Gibbons, who held a federal license. The Court, led by Chief Justice John Marshall, ruled in favor of Gibbons, establishing that the federal government had the exclusive power to regulate interstate commerce, limiting states' powers in such matters. -
Andrew Jackson Elected as President
In 1828 Andrew Jackson was elected as president of the United States, marking a shift in American politics. His victory symbolized the rise of the "common man" against the political elite. Jackson, also known as a war hero, opposed the Second Bank of the United States, stating it was a corrupt institution that favored the wealthy.He was the one sho started the "Bank War," which was a political battle over the Bank’s power. -
Jackson’s First Message to Congress
In Andrew Jackson's First Annual Message to Congress in 1829, he questioned the constitutional and economic role of the Second Bank of the United States, he argued that the Bank concentrated too much power in the hands of a wealthy people, creating inequalitys. He also raised concerns about foreign influence in the Bank’s operations. Jackson's speech set the stage for the "Bank War" and signaled his intent to challenge the institution, ultimately seeking its expiration. -
Recharter Bill Passed by Congress
In 1832,Congress passed a bill to recharter the Second Bank of the United States four years before its charter was set to expire. This was started by Henry Clay and Bank President Nicholas Biddle, he bill aimed to renew the Bank’s charter and extend its influence. The move was a direct challenge to President Andrew Jackson, who opposed the Bank.Jackson’s veto of the recharter bill became a huge issue in the presidential election, ultimately leading to his re-election and the Bank’s eventual end. -
Jackson's Veto
In 1832, President Andrew Jackson vetoed the bill to recharter the Second Bank of the United States. Jackson argued that the Bank was unconstitutional, and gave too much power to the hands of a wealthy few, and created a threat to American democracy. Jackson stated it favored elites over the common people. His veto sparked a huge political battle with Bank supporters, like Henry Clay, and became a key issue in the 1832 presidential election. -
Jackson Re-election
In 1832, Andrew Jackson was re-elected as President of the United States. The election centered around Jackson’s opposition to the Second Bank of the United States, which he believed favored the wealthy elite at the expense of common citizens. Jackson’s veto of the Bank's recharter and his strong stance against it made the Bank a major issue in the campaign. His victory was seen as a mandate to dismantle the Bank. -
Jackson Removes Federal Deposits from the Bank
In 1833, President Andrew Jackson began removing federal deposits from the Second Bank of the United States, transferring them to state-chartered banks, which were also known as "pet banks." This action was part of Jackson's broader campaign against the 2nd Bank, which he viewed as unconstitutional and corrupt. The removal significantly weakened the Bank's financial stability and influence, contributing to a destabilized economy and setting off a series of financial crises. -
The Bank's Charter Expired
On March 3, 1836, the charter of the Second Bank of the United States expired, ending its status as a national institution. The Bank had played an important and huge role in stabilizing the economy. However, President Andrew Jackson’s opposed of it, he had many concerns over its constitutionality and influence, leading him to dismantling it. After Jackson’s withdrawal of federal deposits and the Bank’s closure, it became a private system, marking a significant shift in American financial policy. -
Panic of 1837
The Panic of 1837 was a major financial crisis caused by the collapse of the Second Bank of the United States and many in land and banking. The crisis began in May 1837 when banks failed, causing widespread economic confusion. High inflation, falling land prices, and widespread bank failures led to a severe depression. The economic downturn deeply affected Martin Van Buren's presidency, contributing to his defeat in the 1840 election -
Election of 1840
The Election of 1840 saw candidate William Henry Harrison defeat ex president Martin Van Buren. Harrison’s campaign emphasized his war hero status and portrayed him as a man of the people, contrasting with Van Buren’s perceived elite status. The Whigs used catchy slogans and symbols, like "Tippecanoe and Tyler Too," to appeal to voters. The election marked a shift in political strategy and ended the Jacksonian dominance, leading to Harrison's brief presidency and the rise of the Whig Party.