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Bank Recharter Bill
The Bank Recharter Bill was a bill designed to restart the collective charter of the Second Bank. Congress passed the bill but President Jackson vetoed the bill a week later. -
Election of 1832
The election was between Democrat Andrew Jackson and National Republican Henry Clay. Jackson defeated Clay with 219 electoral votes to Clay's 49. John Floyd and William Wirt ran in the election but didn't receive high votes. -
Jackson's Vetoes
Jackson vetoed the Rechart bill on the Second Bank because the form given to him opposed the sound policy, justice, and the Constitution. Jackson argued that the charter was unfair because it gave the bank significant, almost monopoly, and market power which increased profits in the bank. He suggested that it would be fair to Americans to create a completely government-owned bank. He ended with a devotion of reasons why he couldn't balance his promise to confirm the Constitution with the bill. -
Jackson Removes Federal Deposits
Removing deposits was Jackson's next step in his campaign against the Second Bank. He recommended to his cabinet that they remove deposits. Most members opposed the idea but General Taney approved. When the House voted that deposits were safe where they were, Jackson paid no attention and sent Taney in. Taney ordered that receipts should be deposited in selected banks. Critics condemned the removal as reckless. Fusing his rivals, the removal advanced the arrival of the two-party system. -
Biddle Response
Nicholas Biddle, president of the national bank, began taking action to recharter the bank. He spoke against Jackson's actions and gathered a large group of supporters. Congress voted to try to recharter the bank but Jackson vetoed it once again. Biddle and his supporters claim that Andrew Jackson was abusing his power. -
Jackson's Pet Banks
Jackson attempted to get rid of the Bank resulted in the making of seven pet banks. Pet banks are state banks that collected deposits of federal money. These banks helped stir up a national financial panic in 1833. Towards the end of 1836, there were 91 pet banks that opposed Jackson's budgetary policy. These banks issued notes far of their ability to cover them with silver and gold coins and many of them were issued for stocks and land. -
Speculative Boom
A speculative boom is a false idea that money is in abundance. With federal money moving into state banks after Jackson didn't trust the Bank, many people believed they were becoming wealthier. This lead to a period of people overspending their money and abusing it. Then this lead to the economic crisis of 1837. -
Specie Circular
Specie Circular is an executive order that was issued by Jackson that required payment for the purchase of public land to be made in gold or silver. Jackson made the Treasury department, pet banks, and other money receivers only accept gold or silver as payment for any land owned by the government. The specie circular reduced the use of paper money and helped lead to the Panic of 1837. Congress then repealed it in 1838. -
Crash of 1837
The Crash of 1837 was a crisis in economic and financial conditions in the United States. Changes in the banking system began by Jackson and the Specie Circular that efficiently dried up national credit. President Martin Van Buren was blamed for the crash and suggested that the system for retaining government funds in the U.S. Treasury discussed the situation the Whigs strongly opposed it.
