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Charter of the Second National Bank
After a lot of debating and a couple of tries, in April 1816, James Madison signed an act finally establishing the Second National Bank. When this new bank was established it took away many of the powers that the first national bank had and that the smaller banks were starting to have. However, this bank wasn't very convenient for people of a lesser social standing (poor people) because it only accepted gold or silver as payment. -
Panic of 1819
The Panic of 1819 started in 1819 and didn't end until 1822. The Panic of 1819 started because of the extreme differences between the American banks, and because of this, the whole country fell into an extreme financial panic. As a result, many people lost their jobs, and a lot of banks went out of business. -
Jackson's Election
In the election of 1828 Andrew Jackson ran against John Adams and Jackson won and this started his "rise of democracy". This election marked the transition from a one-party system to a two-party system. -
The Recharter Bill
In July of 1832, then-President Andrew Jackson vetoed the rechartering bill for the Second Bank. He decided to veto the bill because he said that it was in violation of the Constitution and that it was "dangerous to the liberties of the people". -
1832 Election
In this election, Andrew Jackson runs, again, and Henry Clay also runs. During the election, Henry Clay tried to use the Recharter Bill against Jackson, but Jackson still ended up winning the election either way. -
Establishment of "Hard Money"
After the Second National Bank failed Nicholas Biddle attempted to "rebel" against Jackson by calling in debts, and because of this Jackson established what was called "hard money", which was gold or silver, to purchase land. -
Pet Banks
Pet Banks were banks that were considered "loyal" to President Andrew Jackson, which is why they were called "pets". Since these banks were closely tied to the Democratic Party there were a lot of risks that came with the millions of dollars that they were given, mainly moral problems. -
Whig Party
After Henry Clay lost the presidential election of 1832he created the Whig Party. The whole purpose of this party was to basically disagree with everything Andrew Jackson said or stood for. The other people who were on this party wanted a National Bank that supported tariffs. -
The End of the Second National Bank
On September 1st, 1833, the Second National Bank finally came to an end, and the funds from the National Bank were then divided into smaller, per Jackson's choice, and the banks that got the funds would soon be called "Pet Banks" -
Specie Circular Act
Jackson passed the Specie Circular Act of 1836 on July, 11th 1836. This act stated that all land that was owned by the government was to be bought with "hard money". Jackson thought that this was a good way to stop the rising inflation and stabilize federal income. -
Panic of 1837
After Martin van. Buren became the president prices began to rise again, like the first panic, many people lost their jobs and there was an extreme lack of food, and supplies. Unlike the first panic a lot of riots and mobs of upset people. -
Election of 1840
The election of 1840 was the first election to have a two-party system. During the election, Martin van Buren ran again against William Henry Harrison, who was a part of the Whig Party, and to nobody's surprise, Harrison ended up winning the election.