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Biddle's Response
Biddle, being president of the national bank, was infuriated with Jackson's intentions. He argued with Jackson to recharter the bank and even made his own efforts to keep the bank intact. He was able to get a congressional committee to investigate the bank which led to the bank recharter bill that was later vetoed by Jackson. -
Jackson's Veto
After the bank recharter bill was passed, the southern states were infuriated. Many of them thought that the bank favored the Northerners instead of the ones living in the South and West. Jackson, a man who favored states rights, vetoed the bill a week later, which helped him to win his second term of presidency. On the other hand though, his enemies, such as Henry Clay, believed he was abusing his executive power which fueled their hatred towards him. -
Bank Recharter Bill
Congress passed the bank recharter bill to renew the previous charter that had been put in place. It was supposed to last until 1836 but Andrew Jackson vetoed it a week later. -
The Election of 1832
The election of 1832 was a heated race between Jackson and Clay. After Jackson vetoed the bank recharter bill his promise to the country was to get rid of the national bank for good, which led him to gain the votes of the southerners and westerners. His competitor, Henry Clay, had the complete opposite view point, he was promising to keep and support the national bank which gained him the votes of the northerners. In the end Jackson swept the board with the majority of the votes. -
Jackson Removes Federal Deposits
After winning the election, Jackson began to attempt to take down the national bank. Jackson began to create pet banks and remove all of the money from the national bank in hopes that the bank would die sooner. -
Jackson's Pet Banks
Because Jackson was working to destroy the national bank, he created states banks, better know as pet banks. Jackson implemented these pet banks so that federal power over economics would rapidly decrease. The pet banks would continue to be enforced until the end of the national bank in 1836. -
Speculative Boom
When Jackson moved the money from the bank of the united states, to the pet banks, citizens believed that they had more money and began spending more. The speculative boom gave U.S citizens false hope that the economy was growing and that there was an abundance of money. Because the citizens were taking money that they didn't have, it led to the economic crash of 1837 -
Specie Circular
The specie circular was an executive order made by Jackson that said that all payments for government land had to be paid in gold in silver rather than paper money. He created this order in hopes to protect the economy when domestic prices increased. -
Crash of 1837
The speculative boom, specie circular, and inflation all led to the crash of 1837. This was a time of economic distress and unemployment that wasn't anticipated by citizens across the U.S. Many businesses became bankrupt and cotton prices fell without the support of the national government.
