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1832 Bank Recharter Bill
The charter for the Bank of the United States was up for renewal prior to the election of 1832. This charter caused many debates between the Whigs, who supported the bank, and the Democrats, who opposed the bank. Andrew Jackson believed that the Bank of the US was disrupting state rights, although it was viewed as necessary by many in order to have a solid economy. -
Jackson's Veto
After the Bank of the United States was up for recharter, President Jackson had a big decision to make. With half of the country supporting the bank and the other half opposing, Jackson had to decide if he should veto the charter or not. Jackson believed that the Bank was unconstitutional and corrupted the peoples rights. So Jackson ultimately vetoed the charter, siding with the democratic party. This veto would later ensure Jackson's re-election. -
Election of 1832
In the Election of 1832, Henry Clay and Andrew Jackson ran against each other for President. Jackson was a Democrat and typically supported by the South, while Clay was a Whig and typically supported by the North. Jackson had the upper hand in the election due to the fact that he was running for re-election. Jackson did end up winning by a land slide against Clay, becoming the president for another four years. -
Jackson Removes Federal Deposits
After Jackson vetoed the Bank of the US's recharter, he wanted to go even further to abolish the Bank. Jackson ultimately schemed his way around the checks and balances system in attempt to ruin the Bank. He would then remove all of the money in the federal bank, into the smaller state banks. This was supported by the Democrats because it meant the end of the Bank of the US was close. -
Biddle Response
Nicholas Biddle was the President of the Bank of the United States, and he conjured a response when Jackson began to threaten it. Biddle was first trying to recharter the Bank, which was vetoed by Jackson. When Biddle tried again to recharter, Jackson again vetoed. This was used in Biddle's response as evidence that Jackson was abusing his power as President. Biddle rallied many Whig supporters behind him but also was met with a great opposition of Jacksonian Democrats. -
Jackson's Pet Banks
Jackson's Pet Banks, otherwise known as smaller state banks, were used to ensure the downfall of the Bank of the United States. These banks were used when Jackson began to remove federal deposits and give them to these pet banks. Jackson hoped that these banks would help dissolve federal power over the economy, but it just created more conflict between the Whigs and Democrats. -
Speculative Boom
The Speculative Boom in 1933 was an idea led by Jackson's hatred for the Bank of the US. This hatred led Jackson to place large amounts of money into the pet banks and to expect a profitable outcome. Jackson believed that the downfall of the Bank and the prosperous pet banks would lead to economic prosperity. This led to many of Jackson's supporters to spend big without any true assurance that this was a profitable idea. The Speculative Boom would eventually contribute to the economic crash. -
Specie Circular
Jackson instated the Specie Circular plan in order to protect the economy. This plan required all federal land to be purchased with the use of coin money rather than paper. This was thought to help the economy when domestic prices increased. Unfortunately though, this plan just depleted the value of paper money, contributing to the economic panic. -
Crash of 1837
The Crash of 1837, was a economic crisis that occurred in America after the many actions Jackson took during his presidency as opposition to the Bank of the US. Actions such as the Specie Circular and the entire Bank War, foreshadowed this moment. Inflation caused money to be almost worthless, businesses went bankrupt and people lost their jobs. All Jackson had done to achieve a better economy, had fell through and resulted in the exact opposite, showing Jackson that he failed.
