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The Charter of the 2nd Bank in 1816
In 1816 President Madison granted the Second Bank of the United States a twenty-year charter. With the charter in place, the Bank was granted power over finances and the economy: handing out business loans and primarily favoring wealthy citizens. Southerners and those of the lower-class quickly opposed the Bank for its benefit on the wealthy.
Effect:
Andrew Jackson, favoring the states, began to distrust the Bank. The charter created distrust and led to major political issues within the nation. -
Jackson's First Annual Message to Congress
On December 8, 1829, President Jackson gave his first annual message to congress. In it he stated his lack of support for the Bank and began to question its constitutionality. -
Renewal of the Charter
Prior to the election of 1832 Jackson's rivals, one of the more infamous being Henry Clay, encouraged the third president of the Bank Nicholas Biddle to plan a recharter. They hoped to keep the Second Bank going, and betted that Jackson would not veto. Eventually Congress passed the bill: granting the Bank an extra 15 years. Effect:
President Jackson did not respond light-heartedly. He returned the bill unsigned and, in a message to Congress, expressed his veto: creating an uproar of conflict. -
Jackson's Veto Message
President Jackson did not respond light-heartedly to the recharter. Sending back the bill unsigned, he declared to Congress via message that he was vetoing the bill immediately. He explained that the Bank was unconstitutional + a threat to personal liberties. He explained that the Bank was biased towards the wealthy population, leaving farmers deserted.
Effect:
The recharter bill returned to Congress but did not receive a 2/3 majority vote. Tension grew between Clay's supporters and Jackson's. -
Creation of the Whig Party
Formed in 1834 by opponents of Andrew Jackson, the Whig political party was formed. Led primarily by Henry Clay the Whig Party strove to portray Jackson in a negative manner. They supported the 2nd Bank of the U.S., higher tariffs, and favored Congress. Suprisingly the Whig party gained a large amount of support from a variety of different American groups. Effect:
The Senate soon became Whig-dominated. They censured Jackson for withdrawing money from the Bank: creating a political uproar.