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1832 Bank Recharter Bill
Andrew Jackson vetoed the bill re-chartering the Second Bank in July 1832 by arguing that in the form presented to him it was incompatible with “justice,” “sound policy” and the Constitution. The bank’s charter was unfair, Jackson argued in his veto message, because it gave the bank considerable, almost monopolistic, market power, specifically in the markets that moved financial resources around the country and into and out of other nations. -
Jackson's Veto
Jackson believed the Bank of the US was unconstitutional, noting that while there was precedent for a federally chartered bank there was also precedent for not renewing its charter, as in 1811. He then rejected the notion that the Supreme Court was the sole or final arbiter of constitutionality. A reaction set in throughout America’s financial and business centers against Biddle’s economic warfare, compelling the Bank to reverse its tight money policies. -
Election of 1832
It saw incumbent President Andrew Jackson, candidate of the Democratic Party, easily win re-election against Henry Clay of Kentucky, candidate of the National Republican Party, and Anti-Masonic Party candidate William Wirt. Jackson won 219 of the 286 electoral votes cast. It was the first time that the respected parties would hold nominating conventions. It also included, for the first time, the introduction of a third party, the Anti-Masons. -
Jackson Removes Federal Deposits
The removal of deposits was the next step in President Andrew Jackson's campaign against the Second Bank of the United States after he vetoed its recharter in July 1832.The bank's charter gave sole authority to remove federal deposits to the secretary of the Treasury, reporting directly to Congress. The Senate's response, dominated by Whigs, was an assault on Andrew Jackson as an executive, rather than on Bank recharter or the federal deposits. -
Biddle Response
Nathaniel Biddle, president of the national bank, began taking actions to recharter the national bank. He spoke out against Jackson's harsh actions and rallied a large group of supporters. Congress voted to recharter the bank, but Jackson again vetoed. Biddle and his supporters claimed that Jackson was abusing his executive power. -
Jackson's Pet Banks
An attempt by President Andrew Jackson to eliminate the Bank of the United States resulted in the rise of seven "pet banks, " state banks that received deposits of federal money on 1 October 1833. Use of the pet banks contributed to a national financial panic that year. Jackson retaliated against the bank by removing federal government deposits and placing them in "pet" state banks. -
Speculative Boom
A speculative boom is the false notion that money is in abundance and the economy is growing. With federal money moved closer to home, people thought that they were becoming richer. This led to a period of overspending and abuse of money that would in turn lead to the economic crash of 1837. -
Specie Circular
The Specie Circular is a United States presidential executive order issued by President Andrew Jackson in 1836 pursuant to the Coinage Act and carried out by his successor, President Martin Van Buren. It required payment for government land to be in gold and silver. Jackson created the Specie Circular by executive order and refused to renew the charter of Second Bank of the United States, leading government funds to be withdrawn from the bank. -
Crash of 1837
The Panic of 1837 was a financial crisis in the United States that touched off a major recession that lasted until the mid-1840s. Profits, prices, and wages went down while unemployment went up. Pessimism abounded during the time. Inflation, the fall of the national bank, and overspending led to a period of deep economic recession. Prices of American goods fell, businesses went bankrupt, and state banks began to collapse without strong national support.
