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The Charter of the 2nd Bank
Businessmen in New York City urged for the signing of a petition to create a second national bank. Finally, James Madison signed the charter hoping to have a bank that would hold deposits, make payments, and issue federal government debts. In 1816, the 2nd bank was chartered to also control the notes issued by the state banks. Private banks were disciplined by the national bank with the demand for gold and silver. -
Panic of 1819
The panic of 1819 was a widespread financial panic because the trade growth following the War of 1812 was halted. Another major cause was the tightened credit of the Second National Bank as it led to bank failures and unemployment for many. -
The Election of 1828
The Election of 1828 marked Jackson's victory over John Quincy Adams. Jackson's campaign was the main focus of him being a hero to the commoners and against the elite, including the creation of the Second Bank. This election heightened the tensions between the people who supported a strong national bank and the people who opposed it. -
Jackson Vetos the National Bank's Recharter
Jackson vetoed the Second Bank's recharter because he claimed that the bank was unconstitutional and that it favored the wealthy at the expense of the commoners. His veto message argued that the rich used the bank as a tool against the poor and this was seen as highly controversial. -
The Election of 1832
In the election of 1832, Andrew Jackson ran against Henry Clay who was in strong support of the Second Bank. With Jackson winning against Clay, it was seen to the public that there needed to be a dismantling of the bank and Jackson followed by issuing a veto and later taking federal funds from the Second Bank. -
Jackson Orders an End to Deposits
By ordering an end to deposits, Jackson issued all funds from the Second Bank into various state banks and this was a part of his effort to take down the power of the national bank which he viewed as corrupt. -
Clay and Webster Create the Whig Party
The Whig Party was created by Henry Clay, Webster, and many other opponents of Adams. The creation of this party was in an effort to oppose Adams' dismantling of the Second Bank as they were avid supporters of the Bank. The Whigs were defenders of the American System, internal improvements, and protective tariffs. -
Britain Raises Interest Rates
With Britain raising interest rates in 1836, there was a reduction in the flow of British capital moving into the United States which led to even more financial crisis as Andrew Jackson had great opposition to the Second Bank. -
Expiration of the Charter of the Second Bank
The charter of the Second Bank expired in 1836 and it was a result of the Bank War that Andrew Jackson initiated. With Jackson vetoing the recharter of the Second Bank, he also later removed federal deposits from the bank and placed them directly into state banks. Without its renewal, the Second Bank held back its operations. -
Specie Circular
The Specie Circular was issued by Andrew Jackson and it required that the payment for government land should be paid in gold or silver and not in paper money form. The reason he issued this was because he was trying to stop land speculation and inflation, which he believed was the effect of having paper money from state banks. This issuing led to a shortage of hard currency and this led to a credit crisis. -
Panic of 1837
The Panic of 1837 was another form of financial crisis that led to economic depression in the United States. As Jackson dismantled the Second Bank completely as well as issued the Specie Circular, he created widespread financial instability. With Britain's decision to raise interest rates, this added to the crisis and ultimately, as a result, unemployment and economic downturns happened. -
The Election of 1840
The Election of 1840 was influenced by the Bank War, the Panic of 1837, the Panic of 1819 etc.. The Whig Party nominated William Henry Harrison who had a campaign focused on his image was a war champion and hero as well as a man of his people. The Whigs mostly blamed democrats for the economic hardships America has faced and ultimately, Harrsion won the election and this was a major shift in political powers.