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Jackson's Vetoes
Jackson vetoed the bill to recharter the bank, he also declared that the bank was unconstitutional. Jackson did not like that the bank had lots of power and was not being checked over by anyone. He saw that the bank had so much power that it was like a branch of government. Jackson blamed Biddle for attempting to manipulate the bank. The South stood with his decision because it gave the states more power. -
Bank Recharter Bill
Daniel Webster and Henry Clay presented Congress with a bill to renew the charter for the Bank of the United States. The charter was not going to expire for about four more years, but they asked to extend it further. The Bill went through Congress but was vetoed by Jackson. The Bank had been chartered for many years. The Bank favored the rich (New England) and hurt the poorer people (South). -
Election of 1832
The Election of 1832 was the first to involve three parties. Jackson won significantly over Clay in the electoral college. Jackson was the first president from the West and the second without a college education. The major issue during this election was the Bank of the United States. Each party had different views on how important the bank was and how much power it should have. -
Jackson Removed Federal Deposits
Jackson removed the federal deposits to bury the bank for good. Doing this the bank would bleed dry and ensure that it was not successful. Since the bank was collapsing it would lead the United States into an economic crisis. -
Biddle Response
Nathan Biddle was the president of the United States Bank. When Jackson removed the federal deposits Biddle spoke out against him and said he was abusing his executive power. Biddle was able to rally a group of supporters by talking out against Jackson. Biddle produced a financial crisis hoping that it would show the importance of the bank. This became known as “Biddle’s Panic”. -
Speculative Boom
A Speculative Boom is when money is portrayed falsely, saying it is in abundance and that the economy is growing when it is not. When the federal money was moved into state banks people thought that they were becoming richer, this created overspending and a crash in the economy. -
Jackson's Pet Banks
The Pet Banks were privately funded state banks that federal money was deposited into. This helped Jackson reach his goal of destroying the national bank. The South was pleased with this because it gave them more power over the national government. -
Specie Circular
Specie Circular required land to be purchased in gold and silver instead of paper money. This was passed when Martin Van Buren was the president, it led to a decline in the value of paper money. This created inflation, more people started to recognize that a national bank was needed. People in the South became angry because of the inflation. -
Crash of 1837
The Crash of 1837 was also known as the Panic of 1837. The National Bank fell and America was in a period of recession. The profits, prices, and wages went down while the unemployment went up. Many state banks began to collapse because there was no national support.
