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1832 Bank Recharter Bill
Webster and Clay presented a bill to recharter the Bank of America four years before the charter would be up in 1832. They did this to make the bank issue one for the election that Clay hoped would win him the presidential position. The North would advocate for the charter of the bank so they can continue to have a supreme commerce operation. The South would be against the charter because they still believe the bank is unconstitutional and thought it held too much power. -
Jackson's Veto's
Much like Clay suspected, when he passed the bill through Congress, Jackson vetoed it. He declared the bank unconstitutional and it shows how he felt that he is higher in power than that of the Supreme court. Jackson's decision lead to the creation of the Whig party. The Whigs would disagree with his opinion to veto because they wanted a weaker executive branch. The Democratic-Republicans would agree with his choice since they were against the bank from the beginning. -
Election of 1832
This election was Henry Clay against Andrew Jackson for president of the United States of America. Much as Clay had hoped, the debate over the bank was a major influence in the election. Because of their disputes, a third party came about, the Anti-Masonic party. This along with the use of conventions to nominate candidates were new because of the 1832 election. Clay had his advantages, but it wasn't enough to defeat Jackson. The Democratic-Republicans still supported Jackson and Whigs for Clay. -
Jackson Removes Federal Deposits
After Andrew Jackson won the election, he did not want the bank to die in a few years, he wanted it to suffer. So, he decided to remove federal deposits from the vaults. He wanted to withdraw depositing funds with Biddle and shrink existing deposits. Congress greatly opposed this. The North and the Whigs would be upset by this because they are losing a national government and Jackson is showing his inconsiderate side. The South and Democrats would support Jackson and his decision. -
Biddle Response
Once Jackson had vetoed the National Bank, he decided to try and kill the bank in 1832, rather than let it die out in 1836. Biddle, in response, tried to prove the bank's importance by creating a minor crisis over the different opinions. He wanted to try and regain a new charter for the bank but Jackson eliminated this option by withdrawing federal deposits. The North would have agreed with Biddle's attempt to fix the bank and get it operating again and the South would stick with Jackson's veto. -
Jackson's Pet Bank
After the end of the National bank, a bunch of pet banks were created to substitute it. They created a lot more paper money which decreased the value and created more debt. This created a financial problem for the government since there was not a central government to regulate commerce. The Whigs were against these banks because the problems that inflation created and the Democrats were more for it because the banks that supported Jackson were able to thrive without a national bank. -
Speculative Boom
Jackson transferred the federal money to his new pet banks and this caused an increase in paper money production. This misguided the American people because the more paper money that was created, the less numerical value it had. It seemed like since there was more money, there was more of a reason to spend money. With everyone in America spending more money, it helped lead to the financial crisis of 1837. The Whigs would resent this because of the decline in economy, Democrats liked paper money. -
Specie Circular
Jackson wrote a decree that would require any purchase of land to be bought with coined, metallic money instead of paper money. Jackson instituted this to try and decrease the problems with the 'pet banks.' This ended the speculative boom that had created an increase in the amount of paper money spent in America. The Whigs opposed Jackson's sudden change in plan because of how abrupt he brought this upon them. The Democrats thought it was good and helped the economy. -
The Crash of 1837
The crash was a result of the issues that rooted from the veto of the national bank. This was thrown at Van Buren when he became president after Jackson stepped down. The crash was an accumulation of money issues from the pet banks and Americans spending more money they thought the government had. There were also farmer commerce issues because of the inability to produce crops. The American people as a whole would be against the crash because the economy was dropping out of control.
