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1832 Bank Recharter Bill
The national banks charter was up for renewal, which led to lots of argument in the national government. Andrew Jackson, who was president at the time, supported states rights and didn't want to renew the charter. Jackson vetoed the bill and created pet banks as his solution to the problem. -
Jacksons Veto's
Jackson being the president used his powers to veto the bank recharter bill. Jackson thought the national bank was unconstitutional and was against state's right which he was firm supporter of. Many people believed that Jackson was abusing his power and making biased decisions. Jackson's decision was opposed by Henry Clay, Nicholas Biddle, and Daniel Webster. -
Election of 1832
The election of 1832 was between Andrew Jackson, Henry Clay, and William Wirt. Andrew Jackson and Henry Clay were the two main candidates going against each other. Jackson was running for his second term and won, getting 54.2% of the votes. Clay got 37.4% and Wirt got 7.8%. -
Jackson Removes Federal Deposits
Since Jackson rejected the national bank he decided to move all the federal money to the pet banks. Jackson wanted to end the national bank and he believed that if he removed all the money it would be destroyed sooner. -
Biddle Response
Nicholas Biddle at the time was the president of the national bank and was furious. Biddle argued with Jackson relentlessly about rechartering the bank. Biddle spoke out against Jackson and started getting supporters on his side. Congress passed the rechartering of the bank, but it was once again vetoed by Jackson. -
Speculative Boom
A speculative boom occurred from the years of 1833 to 1837. A speculative boom is the false perception that the economy is improving and growing. With Jackson rejecting the charter and creating pet banks he moved federal money into these pet banks. This led people to believe they were richer and to the crisis in 1837 -
Jacksons Pet Banks
Pet banks were banks created by Andrew Jackson in response to rejecting the charter. They were state banks where Jackson would deposit federal money. These state banks purpose was to destroy the second national bank of the united states. The second national bank eventually fell in 1836. Although this seriously hurt the economy and created bitter rivalry; it helped us see the importance of balancing state and national banks -
Specie Circular
The Specie Circular was an act created by Andrew Jackson towards the end of his presidency, but was supported by Jackson's successor Van Buren. The act required all land from now on to be bought with gold or silver and not paper money. Paper money was extremely devalued and inflation was killing the economy. People were starting to see the necessity of a national bank -
Crash of 1837
After years of economic troubles it finally crashed. Inflation, the lack of a national bank, the specie circular and overspending led to this crash. The entire nation was impacted by this crash with business going bankrupt, cotton prices falling, and high unemployment levels.
