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2nd Bank Charter
In 1816, James Madison signed the bill to create the Second Bank of the United States with a charter of 20 years after the financial crisis that followed the War of 1812. -
Election Of Andrew Jackson
Andrew Jackson was elected in the election of 1828 he believed that the National Bank had held too much power and was felt was very harsh on regular farmers and workers. -
Jacksons Veto
During the election year, Jackson vetoed a bill to extend the charter of the Bank as unconstitutional and a threat to liberty even though the Supreme Court upheld the charter. His position on this matter was to become a major campaign point in the 1832 election. -
Election of 1832
Jackson was re-elected in a landslide over Henry Clay who was a supporter of the Bank. Jackson considered this as a call to order to eliminate the Bank. -
Jacksons removal of the National Bank
The way Jackson got rid of the National bank was by withdrawing large amounts of money from the National bank and giving it to state banks wich were called pet banks. This would lead to him being cencored by congress. -
Biddle credit policies
After the withdrawal of money from the Nation Bank due to Andrew Jackson. Biddle called in loans to try and keep the bank alive wich caused a shortage of credits and caused buisneses to be down turned. -
Whig Party formation
The formation of the Whig Party was due to the policies that Andrew Jackson had put on the bank and they thought abuse of his powers. This party was made up of national republicans and democrats who were against Jackson. -
Jackson Censured
The Senate headed by Henry Clay condemned Jackson for his actions in removing federal deposits and termed it as an abuse of presidential authority. This was the first and only time that a sitting president was censured by the Senate. -
End of the National Bank charter
The Bank’s federal charter had actually run out in 1836. The Bank of the United States was run by Nicholas Biddle, its president, who tried to manage it as a private bank however, it lost power when it failed to receive federal support. -
Penelvania State Charter
At the end of the bank charter Biddle tried to keep the bank running by receive a state charter from Pennsylvania it tunred to be pointless as later it would eventually collapse -
Panic of 1837
After Jackson’s presidency, the U. S. faced a serious financial crisis The causes included the failure of the banking system, inflation and speculative lending. Jackson’s actions to dismantle the Bank are said to have played a role in the occurrence of the crisis. -
Election of 1840
In the election of 1840, the Whig candidate William Henry Harrison won against the Martin Van Buren whose presidency was characterized by an economic depression. The Whigs campaigned on the platform of restoring order to the economy, which went against Jacksonian policies.