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Second National Bank Creation
After the first national bank was not renewed for a few years the state banks handle of currency led to high inflation and much economic chaos. It became increasingly clear that National Bank would be necessary and in 1816 the Second National Bank was chartered for 20 years. This bank was not popular in newer states and by people who did not have a lot of money. They believed that the bank only represented the interests of the wealthy. The bank did prove to be valuable though. -
Panic of 1819
After the Second National Bank was chartered, there was financial chaos and panic throughout the country. People began to oppose the national bank because it was one of the reasons for the financial hardships the country was facing at the time. This event caused cultural opposition to banks because it did not help the common man, but only the wealthy and businessmen. -
McCulloch v. Maryland
This was a Supreme Court case that declared the National Bank constitutional and declared the states could not tax federal institutions. This case was significant to the Bank Battle because the case was later ignored by Andrew Jackson when he vetoed a bill on the basis that the National Bank was unconstitutional. This case was very important because it supported the implied powers of the federal government. -
Bank Recharter Bill
Congressmen Henry Clay and Daniel Webster proposed a bill in 1832 to recharter the bank so that it would last 15 more years. The bank charter was not meant to expire until 1836, but Henry Clay convinced Biddle to seek an early recharter. This early recharter was right before Jackson's upcoming election, and they were hoping to put him in a lose-lose situation where it would be bad for him if he vetoed and if he did not. This was an attempt to turn the country against him. -
Jackson's Veto of the Recharter Bill
Jackson decided to veto the Recharter Bill of the Second National Bank. He had previously made it clear that he opposed the national bank, and in his message to Congress, he declared the national bank unconstitutional. This contradicted the Supreme Court decision of Mcculloch v. Maryland, where the Supreme Court decided that the national bank was constitutional. -
1832 Presidential Election
The position over the National Bank was a key political issue in the presidential campaigns of 1832. Andrew Jackson opposed the bank, and Henry Clay was in support of the bank. Despite Clay and Webster's attempt to pull away Jackson's supporters but presenting him with the bill for the national bank, Jackson won with substantially more support than Clay. -
Jacksons Order to Divert Federal Revenue
After Jackson's reelection in 1832, he continued his destruction of the National Bank. He decided to divert all federal revenue to individual state banks, also known as "pet" banks, instead of keeping them in the National Bank. This decision had the support of conservative businessmen who believed the bank's destruction would open business opportunities. -
Senate Censures the President
In response to Jackson's decision to withdraw government deposits from the National Bank, and to fire Duane and hire Taney to remove government funds, the Senate decided after much debate that this was unconstitutional. Jackson's opposers in the Senate formed a group called the Whig Party. They said that he was giving himself authority that was not given in the constitution by hiring Taney to handle the country's treasury. They convinced the Senate to formally censure Jackson for his decisions. -
Specie Circular of 1836
After the discontinuation of the Second National Bank, Jackson decided to slowly remove all paper currency from the country. He wanted the currency to be only gold and silver. He prohibited banks from issuing bills of less than five dollars. In the Specie Circular of 1836, Jackson outlawed the purchase of public land in currency other than gold or silver. This decision left the country with split reactions. Some supported his ideas, while others thought they regressed the country's progress. -
Election of 1836
In the election of 1836 Martin Van Buren was elected president. During his presidency, Van Buren supported the idea of limited government and proposed an independent treasury system to separate government from the nation's finances. Van Buren also refused to provide government aid to businesses. Buren eventually convinced Congress to adopt an independent treasury system in 1840, but this system was later repealed by the Whigs and then signed back into law in 1846. -
Panic of 1837
The bank expired in 1836 and as a result, Biddle accepted an offer from Pennsylvania to turn it into a state-chartered bank. As a result of the discontinuation of the National Bank, state banks began printing and loaning enormous amounts of money. At first, Jackson's discontinuation of the bank seemed to be positive but eventually, there was high inflation, and Jackson's support of hard currency like gold and silver, caused economic despair in the country. Prices rose 28% in just three years. -
Election of 1840
The election of 1840 was won by William Henry Harrison, who was a member of the Whig political party. Harison beat Van Buren by a lot. He favored a strong central government and repealed Van Buren's Independent Treasury Act during his short presidency. Harrison died on his 32nd day in office.