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The 1832 Bank Recharter Bill
Nicholas Biddle, the president of the national bank, was advised by Henry Clay to seek a recharter bill in 1832 four years before the current bill was set to expire just to be safe. -
The Election of 1832
In 1832, Jackson had no intention of leaving office. The other candidate was a member of a smaller party whose name (Anti-Masons) were directly against Jackson and his beliefs (he was a Mason). Anti-Masons had religious intentions which many people believed had no place in government. Jackson won by a landslide. -
Jackson Vetoes the Bank Recharter Bill of 1832
Andrew Jackson was against the national bank and everyone who supported the bank. It was not surprising when he vetoed the bank. Democrats like himself represented the South and "common folk" who were not represented equally by the bank. -
Jackson removes federal deposits
With the National Bank set to expire, Jackson needed to move the money out of the bank. He divided the money among the state banks. -
Biddle's Response
Biddle responded to the removal of funds by calling in his loans and create a financial crisis. He believed that this would show the bank's importance but it didn't change anything. -
"Pet" Banks
Jackson's "Pet" banks were the banks which he moved all the federal money too. These banks proved unreliable. Jackson attempted to control them but all of the banks had their own separate currency and flooded the economy with it. -
Speculative Boom
Many colonists at this point were looking for and purchasing new land in the west. -
Specie Circular
Jackson was having a very difficult time controlling the "Pet" Banks. They all had different currency and were causing mass inflation. In a desperate attempt to control this, Jackson issued the Specie Circular. This made it so all public land needed to be purchased with gold or silver or other metallic currency, which brought Western Expansion to a dead stop. -
Crash of 1837
Andrew Jackson had chosen his successor to be Martin Van Buren. He also tried to control Jackson's "Pet" Banks which had been a problem for some time. This combined with the failure of two major British banks caused additional issues in our economy and the beginning of the panic.
