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1832 Bank Recharter Bill
The rechartering of the Second Bank of the United States was largely opposed by the Democrats, led by Andrew Jackson. They opposed it because they believed it infringed on the rights of the states and the poorer class. The reappearance of this problem formed one of the many issues that were addressed in the upcoming election. -
Jackson's Veto
President Jackson vetoed the recharter of the Second Bank of the US because it almost monopolized the market as it favored wealthy private investors over the common man. Jackson and his Democrat supporters, being the common man, vouched for a completely government controlled bank. However, Congress could easily overturn the veto with a 2/3 vote. -
Jackson's Veto
President Jackson vetoed the recharter bill because it endangered states' rights and created almost a monopoly on market power. The bank favored wealthier private investors rather than the common man, which was controversial. However, Congress could easily upturn this veto with a 2/3 vote. -
Election of 1832
The election of 1832 consisted of three candidates - Andrew Jackson, Henry Clay, and William Wirt. Jackson pulled through with the most votes in the end with his strategic running mate, Martin Van Buren, who succeeded Calhoun and later became president. During his campaign, Jackson opposed the Bank rechartering while Clay supported it. -
Jackson Removes Federal Deposits
The Second Bank of the United States was the sole holder of federal money. Jackson saw this as a large threat and liability for corruption, so taking away the funds would choke out the potential for problems and the bank itself. The Treasury Secretary was the only one allowed to remove funds from the ban, but Jackson's Treasury Secretary opposed his plans for fund removal. To facilitate his needs, Jackson promoted his Treasury Secretary and promoted a Democratic bank opposer to remove the funds. -
Biddle's Response
Nicholas Biddle was the president of the National Bank at the time, and often conflicted with President Jackson. Biddle made private efforts to reinstate the bank, such as creating a Congressional committee to watch over bank activities. His efforts were passed in Congress, but later vetoed by Jackson. -
Jackson's Pet Banks
Jackson's Pet banks were strong, privately operated state banks that provided funds to the federal reserve. These smaller banks destroyed the national bank and the economy, but the practice of state to federal banking persisted into the future. -
Speculative Boom
With the banks moving closer to home, the idea arose that money was plentiful and the value increased. The economy was not growing, despite popular belief. While more money was spent, the dollar was being abused to the point of a crash. -
Specie Circular
Paper money had lost most of its value after being constantly abused due to a false sense of economic growth. Jackson passed the Specie Circular Bill to maintain the value of gold and silver when dealing with the purchased lands of Native Americans. Only silver and gold, rather than worthless paper money, were accepted when the federal government purchased these lands. -
Crash of 1837
Unemployment skyrocketed in the Panic of 1837 as inflation rose, monetary abuse and overspending climbed, and the national bank finally was destroyed. The nation was launched into a recession as bankruptcies were declared, goods were devalued, and banks closed down.
