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Bank Recharter Bill
Andrew Jackson rejected the renewal of the Bank. This caused some unrest in the bank’s authority and how unconstitutional it was. The debate formed the opposing sides of the upcoming election. -
Jackson's Vetoes
Andrew Jackson started to take advantage of his power as president and he vetoed the bank recharter bill. This caused a divide between his supporters and his enemies. He did this because he felt entitled to more power than he actually held. -
The Election of 1832
Andrew Jackson ran against Henry Clay in this election. Jackson won by a landslide, focusing on getting rid of the national bank. He won but the nation was once again divided. -
Jackson Removes Federal Deposits
Jackson put a plan into action that would force the national bank to collapse. He did this by taking all the money in the national bank and distributing it to the state banks. His plan worked too well and the nation was forced into an economic crisis. -
Biddle Response
Nathaniel Biddle, who was president of the national bank at the time, was outraged over Jackson’s actions. He tried to rally to recharter the national bank. Congress voted to recharter the bank but Jackson overruled their decision with a veto. Jackson was abusing his power and he no longer had Congress to stand by him. -
Jackson's Pet Banks
The Pet Banks are where Jackson distributed the federal money to. Because of his harsh actions, people figured out that it is important to find a balance between a strong national bank and strong state banks. This caused the system of transferring money to state banks to continue. -
Speculative Boom
People started to believe that they had more money than they actually did because all the money from federal banks was moved into state, more local, banks. This caused people to overspend and indulge which eventually led to an economic crash in 1837. -
Specie Circular
Jackson passed a law that required land to be purchased using silver and gold rather than paper money. He did this because he simply believed it to be the right way to purchase land. This had a negative effect in the end because paper money decreased in its value. Van Buren, who was now the president, got all the heat instead of Jackson and people, going against Jacksonian beliefs, longed for the return of a national government. -
The Crash of 1837
A period of economic recession had been reached after the fall of the national bank, inflation, and overspending. The American economy was hurting as businesses went bankrupt and American goods became of nearly no value. State banks could not withstand themselves without a national bank to help support them.
