The Bank Battle | Michael Furlough

By mfurlough

  • Charter of the 2nd Bank in 1816

    Congress chartered the Second Bank to stabilize the economy and manage war debt after the War of 1812.

  • Panic of 1819

    A financial crisis caused by a post-war economic downturn, falling agricultural prices, and overextension of credit by the Second Bank led to widespread bank failures.

  • McCulloch v. Maryland

    The Supreme Court upheld the constitutionality of the Bank, ruling that the state of Maryland could not tax the national bank, affirming federal authority.

  • Nicholas Biddle becomes President of the Second Bank

    Biddle took charge and worked to stabilize the Bank, making it a dominant institution in U.S. finance.

  • Andrew Jackson elected President

    Jackson, a strong opponent of the Bank, was elected and promptly began his campaign to dismantle it..

  • Veto of Recharter Bill (1832)

    Congress passed a bill to renew the Bank's charter, but Jackson vetoed it, claiming the Bank was unconstitutional and a threat to democracy.

  • Election of 1832: Jackson wins re-election

    Jackson won re-election, using his opposition to the Bank as a central theme of his campaign.

  • Removal of Federal Deposits (1833)

    Jackson directed Treasury Secretary Roger Taney to withdraw government funds from the Bank, placing them in state-run "pet banks."

  • Senate censures Jackson

    The Senate formally censured Jackson for removing federal deposits without Congressional approval, the peak moment in the political conflict over the Bank.

  • Specie Circular of (1836)

    Jackson issued the Specie Circular, requiring payment for public lands in gold or silver, contributing to the Panic of 1837.

  • Panic of 1837

    A financial collapse triggered by speculative investments, declining cotton prices, and unstable banking policies, was partially linked to Jackson’s destruction of the Bank.

  • Election of 1840: William Henry Harrison elected President

    Harrison, a Whig, defeated Martin Van Buren, as voters blamed Van Buren and Jacksonian policies for the economic turmoil following the Panic of 1837. (The Whig Party was a political party formed in 1834 by opponents of President Andrew Jackson and his Jacksonian Democrats.)