The Bank Battle

Charter of the second Bank

1816

The federal government charted the Second Bank in part to exert control over the notes produced by the state banks. The central bank may punish speculating private banks by demanding payment in gold or silver.

The Panic

1819

This was when the Second Bank Of the United States was responsible for the economic disaster which was the bank collapse. It also reduced credit in a late-stage offer that had contained inflation.

McCulloch V. Maryland

Mar 6, 1819

This was a case where the states were not allowed to impede the federal government's use of the Necessary and Proper Clause's implied powers to further the express constitutional powers of the federal government.

Jackson's Veto

1832

There was a bill that had been passed by Congress that was to extend the Charter but Jackson vetoed the bill claiming the Bank had been "unauthorized by the Constitution making it a threat to the rights of States and dangerous to the liberties of the people.

Introducing a bill

1832

Congress was presented with the Bank Recharter Bill in an attempt to extend the Second Bank of the United States charter, which was scheduled to expire in 1836. The bill sought to add twenty more years to the Bank's charter.

Jackson

1833

Jackson gave orders to his Treasury Secretary to transfer federal funds to a few state banks that he created as "pet" organizations. His Treasury did not carry out their order causing Jackson to appoint a second secretary that his order was implemented.

The Whig Party

1834

This was a party that was led by Henry Clay whose reason was to challenge Jacksonian Democrats by launching the " second party system".

Jackson's Specie Circular

Jul 11, 1836

Jackson tried to reduce inflation by requiring public land payments to be switched to hard currency which caused most Americans to exchange paper bills for gold and silver.

The Panic

1837

This had been an economic depression because of the downturn of the economy in the United States.

After Election

1837

The county had experienced a financial crisis. Which dealt with cotton prices to drop by half. New York was also affected by throwing around 50,000 people from their work. This caused hungry mobs to break into the city's flour warehouse.

Election

1840

This is when Van Buren lost re-election which had been against William Henry Harrison.

Independents

1840

Van Buren persuded Congress to establish an independent treasury system out of the concern that the federal government might lose the funds it had deposited in private banks. This proposal placed federal funds in insulated subtreasuries that had been separated from the baking system. As a result, the banking sector was stripped of funds that could have supported recovery.