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1832 Bank Recharter Bill
1832 Bank Recharter Bill: The national charter face renewal, however; President Jackson who's been an eager supporter of state's rights rejected the renewal of the bank. The issue of the bank's constitutionality and where financial power lies resurfaced that formed the platforms of the upcoming elections.
(picture link: https://www.docsteach.org/documents/document/selection-from-president-andrew-jacksons-veto-of-the-bank-recharter-bill) -
Jackson Veto's
Since Jackson had was President he took advantage of his power and vetoed the Bank Recharter Bill. After he vetoed the Bank Recharter Bill this caught his supporters attention and angered Henry Clay, Daniel Webster, and Nicholas Biddle.
(picture link:https://www.moaf.org/exhibits/checks_balances/andrew-jackson/broadsheet) -
Election of 1832
In the Election of 1832 Jackson ran against Henry Clay of Kentucky. His platform was to get rid of the national bank, with the promise support of Clay. The opinions of the country were divided. Jackson was re-elected by 219 of the 286 electoral votes cast.
(picture link: https://en.wikipedia.org/wiki/United_States_presidential_election,_1832) -
Jackson Removes Federal Deposits
Jackson took all the money from national reserves and distributed it to state "pet" banks. He thought that getting rid of the bank's money would cause it to collapse faster which worked. Therefore, the National bank collapsed at a rate that would lead the country into an economic crisis.
(picture link: https://www.pinterest.com/pin/513973376198270758/) -
Biddle Response
Nathaniel Biddle the president of the National Bank had begun taking actions to recharter the National Bank. He stood against Jackson's harsh actions and rallied a large group of supporters.Congress voted to recharter the bank; however, Jackson vetoed again. Biddle and his supporters claimed that Jackson was taking advantage of his executive power.
(picture link: https://en.wikipedia.org/wiki/Bank_War) -
Jackson's Pet Banks
Jackson deposited federal money in privately funded state banks which is known as Pet Banks. The system of transferring money from the federal level to the continued even though it hurt the economy and destroyed the national bank. However; people learned the importance of finding a balance between a strong national bank and a strong state bank.
(picture link:https://cioccahistory.pbworks.com/w/page/13053922/Pet%20Banks) -
Speculative Boom
A speculative boom is the false notion that money is in wealth and the economy is developing. People thought that they were becoming richer just because the federal money moved closer to home. Which led to a time of overspending and the abuse of money that would lead to the economic crash of 1837.
(picture link: http://noxad.org/makemoney/?doing_wp_cron=1509404425.2533390522003173828125) -
Specie Circular
This act required that the land can be purchased in gold and sliver rather than paper money or bank notes.This led to a drastic decline in the value of paper money. The economy was hurt because of inflation. The people particularly the South became angry with Buren instead of Jackson. People saw the necessity of a national bank from the change in presidency.
(picture link:https://www.americanbullion.com/gold-rallies-venezuela-makes-gold-swap/) -
Crash of 1837
The Crash of 1837; the fall of the national bank and overspending led to a time of deep economic recession. Cost of American merchandise feel, organizations went bankrupt, and state banks started to crumple without a strong national support.
(picture link: http://www.brandeis.edu/magazine/2013/spring/inquiry/depression.html)
