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Charter of the 2nd bank
Before the War of 1812, the economy was already spiraling, there were supporters of the bank but not many. In January of 1814 congress got a petition sought by 150 businessmen in N.Y. Telling the legislature to create the second bank. Then again in February and November. When Calhoun put the bill forward for the new bank but the bill didn’t pass. After many failed attempts Dallas called for the making of the Second Bank and after much debate, Madison finally signed it in April 1816. -
McCulloch v. Maryland
In 1818 Maryland passed legislation to impose taxes on the bank, but McCulloch refused to pay the taxes. After the Court went over the case it was a unanimous vote that Maryland can not tax the instruments of the national government. -
Bank war
Even thought Jackson knew the Bank was important he also knew that the Bank had too much power and could ruin the U.S. economy. Jackson believed the Bank put too much power in the hands of “too few wealthy American citizens”. Even though Jackson knew the Supreme Court ruled the Bank constitutional he still challenged the charter. There was a bill to recharter the Bank but didn't have enough votes to undo the veto. Jackson vetoed was because it was the first step in years to “kill” the Bank. -
The Battle of Recharter
Biddle submitted his bid for the recharter of the Bank hoping to calm the President and his supporters.When Jackson saw this he was furious and it further proved his point that the Bank was being misused for American politics.Jackson no longer wanted to compromise; he was now just going to get the Bank destroyed. The Senate passed the recharter bill and so did the House of Representatives. Everyone thought Jackson would veto the bill but he didn’t since he would be voted out of office if he did. -
Jackson Bank Veto
Jackson vetoed and said the Bank was unconstitutional and “out of hand” He gave political, social, and economic evidence of why it was.
The veto was political propaganda. Democrats started to spread it and when people read it they wanted to reelect Jackson. -
Election of 1832
The veto put Clay at a very high disadvantage. No matter what speech or action Clay did nothing could beat the impact of the veto. Clay made it seem like Jackson was unconstitutional and overusing his power. Jackson won 54% of the popular vote while Clay had 36%. Jackson won because of how he betrayed the Bank and had people feel as if they had to choose between him or the Bank. -
Final act of the Bank war
Jackson Removed all the funds from the Second Bank, he put them into different state Banks. These banks were known as “pet banks”. He had now officially succeeded in destroying the Bank. -
Whig Party
It was formed by Henry Clay and other opponents of Jackson. They wanted to portray Jackson as “King Andrew”. They had evangelical protests and the people who were against Jackosn rushed to expand the country's border. These people were mad about the Second Bank and the fact Jackson ignored the Supreme Court and challenged the Constitution. They sided with Congress and the legislative powers over Presidential degrees. -
Bank License expires
It led to the separation of banking, a rise in financial instability, and corruption which created the Panic of 1837. It also marked Jackson's victory who saw the bank as unconstitutional and wanted it destroyed. -
Election of 1836
Van Buren ended up being the first President to succeed over another in the same political party ever since the founding era. Van Buren was Jackson's preferred contender. But during this election, the Whig Party was trying to split the votes so there would be a majority vote winner. -
Panic of 1837
It was caused by economic policies and it ended up being an economic crisis that was also one of the most severe in U.S. history. It was built off of speculation fever. In the end, it was followed by a depression, a record of unemployment, and a failure of banks and it didn't end till 1843. -
election of 1840
William Henry Harrison, a Whig candidate, defeats President Martin Van Buren. The defeat was because of the economic effect during and after the Panic of 1837. He won by a landslide, but his Presidency didn’t last because he died a month after taking office. Tyler took over as President, becoming the first vice President to become President after a death.