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1832 Bank Recharter Bill
The Bank of The United States had a charter that was supposed to last until 1836, but Henry Clay and Daniel Webster convinced Nicholas Biddle to request a new charter four years early. They convinced him that it could be rechartered even though Andrew Jackson was against a national bank. -
Jackson's Veto's
Andrew Jackson vetoed the bill that was supposed to recharter the bank even though congress passed it. This caused Jackson to be unpopular since most people within congress believed the bank was a part of the American process and voted for the bank. -
Election of 1832
Andrew Jackson was reelected as president in 1832 even though people thought he would lose since he vetoed so many bills. His victory destroyed the anti-masonic and the national-republican parties. Andrew Jackson had selected a new Vice President since Calhoun resigned. -
Speculative Boom
This boom happened since many people thought that since the money was moved into state banks. People believed that they would become more wealthy since the money was closer to them; therefore, the citizens started spending money which led to an economic depression. -
Biddle's Response
Biddle called in his bank loans since it will led to a minor financial crisis. This would prove that the bank was necessary for the economy. While the bank was being killed, other banks were going down as well. -
Jackson Removes Federal Deposits
Andrew Jackson figured that if he removed all federal deposits, then he would destroy the Second Bank of America. Since Jackson was reelected, he was capable of taking down the bank. The southerners agreed with him while the northerners were mad at him. Jackson started putting government deposits into state banks which gave the pet banks more power and drained the federal bank. -
Jackson's Pet Banks
As a final attempt to destroy the bank, Jackson started up seven "pet" banks. They were seven state banks that were built in order to hold the federal deposits. This was because Jackson was a supporter of states rights and believed that the federal government was too powerful and that it shouldn't be as powerful as a branch of government. -
Specie Circular
This was a executive order issued by Andrew Jackson that required citizens to pay for land in gold and silver. The desire to stop paper money by making people pay with gold or silver. This lead to an economic crisis since people were able to only pay with coin money instead of paper money. -
Crash of 1837
The Panic of 1837 was caused by the destruction of the banks since that would lead to people becoming poor. This started a major recession that made unemployment inclines while prices and wages declined. Many people became bankrupt since they had no jobs and no way to support themselves.
