-
2nd Bank in 1816
The second bank of the United States was created by James Madison which was very similar to the previous bank. It was chartered for 20 years. The creation of this bank had angered Andrew Jackson. He thought it was unconstitutional and dangerous. This had started the beginning of the bank wars against the bank president Nicholas Biddle. -
Andrew Jackson elected
During the 1828 election, Andrew Jackson (democratic) was against John Quincy Adams (republican) in the presidential election. Andrew Jackson then won and took the oath of office and was the 7th president of the US. He brought to office democratic views and would later challenge the constitutionality of the bank. -
Jackson Re elected
Andrew Jackson went against Henry Clay at the election and Jackson won the presidency again. His main plan was to focus on the Bank of the US since he opposed it. He wanted to highlight the common people. His opponents Nicholas Biddle and Henry Clay tried their hardest to fight back and not have the banks closed. Jackson then started the pet banks. -
Early renewing of banks charter
Henry Clay a senator tried convincing the president of the banks Nicholas Biddle to renew the second bank's charter early hoping that Jackson would recharter it before the election if Congress passed it. They then passed it to Congress, which allowed it, and stated that the charter would be extended another 15 years. -
Jacksons veto
A bill suggested by Nicholas Biddle and allowed by Congress was then passed to President Jackson who vetoed the bill of recharting the second bank. He sent it back unsigned with a message stating his veto. He said the bank was unauthorized by the constitution and dangerous to the rights of the people and the states. He emphasized the idea that it benefited the higher-class people and was unfair to the farmers, mechanics, and laborers. -
Biddles response to withdraw
Since Jackson's withdrawal of deposits from the Bank. Biddle responded and restricted the bank's loans which tightened the country's supply of money to try and influence people to oppose Jackson's policies and try to consider the charter. This plan went wrong and caused financial distress which raised suspicions of the power that the bank has. -
Jackson withdrawing deposits
After Jackson's re-election, he told his secretary of the Treasury to stop depositing any more federal funds with the bank and instead put them in the state banks (pet banks). This upset the supporters of the Bank. -
The Whig Party
The Whig Party was an organization made up of people who opposed Andrew Jackson and was led by Henry Clay. The senate was full of Whig members which censured Jackson for taking away the federal deposits. The party favored the Second bank, higher tariffs, giving the states land revenues, and passing relief legislation. -
Second Bank Charter Expiring
The second bank of the US was created in 1816 and was only chartered for 20 years. Clay and Biddle's attempt to recharter the bank had failed and was set to expire in 1836. After the charter expired the nation had experienced a financial crisis and didn't adopt another bank for a while. -
Specie Circular of 1836
Jackson still did not enjoy the idea of any bank. He decided to replace bank notes with hard money like gold and silver. He only allowed the purchase of public land if it was silver or gold. This plan had caused many sales to boom but at the same time, inflation had also increased. -
Panic of 1837
After the Specie Circular, people tried to cash in their soft money in the banks but the banks refused and left them with worthless money. Banks had collapsed, money lost value, inflation increased, and many workers were financially doing badly. Both political parties were then blaming each other for this loss. -
Election of 1840
This presidential election was between William Henry Garrison (whig) and Martin Van Buren (democratic). Harrison then had won 234 electoral votes and Van Buren 60. Harrison caught a bad cold and died a month in office and vice president Tyler became president. He had similar ideals to Jackson and vetoed charters for banks