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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. Charted for 20 years, the south and the west did not like the bank because they did not focuss on Industry. -
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. This was later ignored by Jackson when he veto the recharter bill later. -
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. (He stabilized the currency, regulated credit, managed money supply, safeguarded government deposits, and opposed Andrew Jackson.) -
Andrew Jackson elected President
Jackson, a strong opponent of the Bank, was elected and promptly began his campaign to dismantle it. (He believed the bank held too much power, like a monopoly, and became corrupt and was unconstituitonal.) He and his supporters thought destroying the bank would open business oppurtunitys. -
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. (He believed it favored the Rich instead of the common people like a monoply.) He had no choice, he was in a loss-loss he would loss supporters if he did not veto. -
Election of 1832: Jackson wins re-election
Jackson won re-election, using his opposition to the Bank as a central theme of his campaign. This allows Jackson to continue with his policies on his opposition on the Bank. -
Removal of Federal Deposits (1833)
Jackson directed Treasury Secretary Roger Taney to withdraw government funds from the Bank and place them in state-run "pet banks." "Pet banks" were chosen for Jackson's loytaly preference rather than stability. (State Banks that were selected by the U.S. Departnment of Tresaury to recive surplus funds.) -
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. Trying to rid of paper bills/money. Prohibited the bank giving bills anything over $5's. -
Panic of 1837
A financial collapse triggered by bad investments, declining cotton prices, and unstable banking policies, was somewhat linked to Jackson’s destruction of the Bank. (Profits, prices, and wages dropped "aka inflation", westward expansion was stalled, and unemployment rose.) -
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. Believed in modernization, high tariffs, and conservative fiscal policy.)