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Jackson removes Federal Deposits
Since Jackson had already created his “pet” banks, he started to take most of the money from the national reserves and place them into the pet banks to help further destroy the national bank at a faster rate. He succeeded and this succession then lead to a crisis. -
1832 Bank Recharter Bill
The National bank charter was almost renewed. Andrew Jackson had vetoed the bank from getting renewed. He ordered for all of the federal government’s deposits to be put in “pet” banks. -
Jackson's Vetoes
Jackson had vetoed the bank recharter bill, which attracted the people who supported him, but caused problems in the long run for the enemies he had (Henry Clay, Daniel Webster, and Nicholas Biddle). -
Election of 1832
The election of 1832 was the time when Jackson and Clay went head to head in an election. Jackson had the idea to get rid of the National Bank like he previously tried, while Clay wanted it to stay and was all for it. Jackson got reelected and got the privilege over Clay to follow through with the destroying of the bank. -
Biddle response
Nathaniel Biddle, who is the president of the national bank (that was getting destroyed by Andrew Jackson), had to take charge in getting it back. He had gotten a support group after he spoke about what Jackson had done. The congress had voted to recharter the bank because of Biddle. But Jackson refused and once again put a stop to it with a veto. -
Speculative boom
A speculative boom is the “belief” that there is a large amount of money and the economy is still growing because of it. People were tricked into thinking they were becoming wealthier than before. They started to overspend the money and this lead to the economic crash of 1837. -
Jackson's pet banks
Jackson’s pet banks that he created were where he was depositing federal money in the privately funded state banks. These pet banks were affecting the economy negatively and slowly destroying the national bank. -
Specie Circular
This act was created by Jackson, but wouldn’t have gotten anywhere without Van Buren who was now in office and acted upon this. Jackson had always payed with paper money or banknotes, but this act required gold and silver. Paper money had started to decline and the economies were hurt. Van Buren got the short end of the stick because he got all the wrath from the Southerns instead of Jackson getting it. This act, and the economies that got hurt finally showed how much a national bank was needed. -
Crash of 1837
This was the fall of the national bank. All of the overspending that happened in the speculative boom lead to this. American prices fell, many businesses had become bankrupt and the states banks had crashed because there was no longer national support.
