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Charter of the 2nd National Bank
James Madison chartered the second bank of the United States for 20 years. This second national bank was a private corporation that passed profits to stockholders. It was also used to control bank notes that state banks issued. Republican party of Jefferson and Madison doubted that this bank was constitutional. National debt and inflation were high. People could only pay with gold and silver. -
Panic of 1819
The panic of 1819 was after the second national bank was chartered, many financial panic. Many people started to oppose the national bank because they knew that the bank was the reason for the financial panic. This affected mostly the lower class, but it benefited the wealthy. -
McCulloch v. Maryland
McCulloch v. Maryland was where Maryland wanted to impose taxes on the bank, which McCulloch refused to pay. After this, the court decided in a unanimous vote that the federal government had the power to set up a federal bank and that the states could not tax the Federal Government. This implied powers for the Federal Government. -
Election of 1832
The election of 1832 was against Andrew Jackson and Henry Clay. Henry Clay wanted to rechart the bank early, the bill passed Congress but Jackson vetoed it. He vetoed it because he said that it was unauthorized by the Constitution and troublemaking to the right of the states, dangerous to the liberties of the people. -
The Recharter Bill
Nicholas Biddle had summited his bid for the recharter. Jackson knew he was mad and knew that the bank was being misused for just American politics. Jackson's main goal was to get the bank destroyed. Both the houses passed the recharter, but Jackson wanted to veto it but he knew if he would be taken out of office if so. -
Whig Party
The Whig Party was created by Henry Clay when he had lost the election of 1832. They wanted to portray Jackson as a King and disagree with anything that Andrew had said. These people were with Congress and legislative power. They wanted a national bank and they supported tariffs. -
Hard Money
The establishment of hard money was after the second national bank had failed. Biddle wanted to rebel against Jackson, so he established hard money. The hard money was gold and silver. -
Pet Banks
The Pet banks were state banks that were loyal to President Jackson. These banks were formed after the fall of the Second Bank of the United States. Due to this loans were granted without allowing for loose money policies. They failed to cooperate with other banks. -
End of the Second National Bank
The End of the Second National Bank was where Jackson wanted to destroy the bank. Federal funds from the Second National Bank were distributed to many state banks which are known as "pet banks." -
Specie Circular Act
The legislation stated that hard currency, like silver and gold, must be utilized for buying government-owned land. He didn't allow banks to issue bills that were less than five dollars. Jackson believed that this was a great way to stop inflation. -
Panic of 1837
The Panic of 1837 was when Buren was president. Since the national bank was gone, the state banks were printing big amounts of money, and prices began to increase such as in the first Panic of 1819. Jackson's original currency of gold and silver caused financial distress. -
Election of 1840
The Election of 1840 was when William Henry Harrison became president and he was a member of the Whig Party. Harrison liked a strong central government. This election is often referred to as the first election to have a two-party system or be considered the first modern election. He later died in office 32 days after his inauguration.