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1832 Bank Recharter Bill
In 1832 Clay pushed for an early recharter of the Bank of the United States. This passed in congress, although it was then vetoed by Jackson. He declared it as unconstitutional, against states rights and dangerous to personal liberty. Jackson then stated the government would no longer put funds in the Bank, and instead will place them into state banks. This was entirely unexpected and a very bold, random move by Jackson which led to the Bank War. -
Jackson's Veto
Jackson vetoed the bill in order to gain votes from the southwestern United States, which he gained and was reelected, only to spearhead a new crisis. -
Election of 1832
Jackson won the election by beating Clay due to his radical policies garnered by the South. He later went on to fully enforce the veto and shut down the national banks, leading to uproar in the north. -
Jackson Removes Federal Deposits
Jackson removed all Federal deposits from the Bank of the United States. He was opposed by nearly everyone, but carried through to create a new political divide, for and against Jackson. -
Biddle Response
Biddle tried to keep the banks open. He began to malign Jackson against his actions closing the banks, saying he was the cause of a new financial panic, which he was. He asked Pennsylvania executives to condemn Jackson, however since they did not receive a promised sum of $300k they denounced Biddle instead. His reasoning was attempting to keep the US out of a major economic peril which could impact the world. -
Jackson's Pet Banks
A series of state banks set up by Jackson to collect federal deposits instead of the BUS. However, most of these banks poorly loaned out money and either went severely red or bankrupt, with all of the governments money. These were set up by Jackson in a blind attempt to save the economy after his poor decisions, seeing Biddle may have had a point. -
Speculative Boom
This was a sudden spike in land speculation, predicting incorrectly how much future growth would happen soon, and made many banks bankrupt. This was due to the banks not receiving back any of the money they lent out. The federal government then responded in a way to make everything backed by gold and/or silver. -
Specie Circular
This was an executive order issued by Jackson in response to the Speculative Boom. It stated that all new land purchases had to be made in Gold or Silver. This was to attempt to restart the economy from one of it's failing aspects, land. -
The Crash of 1837
This was an economic crisis spawned by the new rejection of Specie payments at full value, and everyone began to panic and everything went in the red, many people were out of business and everyone working for them lost their job. This continued into the 1840s.
