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1832 Bank Recharter Bill
In 1832, Andrew Jackson and many of his followers did not trust the bank. It had a lot of power due to the gold and silver and it was a private institution. The investors held a large amount of power over the nation's finance.The beginning of the Bank War began with a recharter bill which was introduced to congress. The charter was suppose to expire in 1836 but Henry Clay pushed it earlier. -
Jackson's Veto
Jackson vetoed the bill because he stated that it was unconstitutional even though McCullough v. Maryland described as constitutional. In doing so, Jackson acted superior towards the judicial branch and put the executive branch in a higher power. He vetoed it because of personal issues, not constitutionally. -
Election of 1832
The issue with the bank came to the election of 1832. It was between Henry Clay and Andrew Jackson. A third party would enter in the election called the "Anti-Masonic" party. The Bank of the United States gave $50,000 in life insurance. Jackson still defeated Henry Clay. -
Jackson Removes Federal Deposits
Even thought the United States Bank was going to expire in 1836, Jackson wanted it to go down even harder. He felt that Biddle was going to somehow reinforce the banks charter. In 1833, Jackson removed federal deposits from its vaults. This would ensure the bank would fall. -
Specie Circular
"Wildcat" currency became unreliable. Jackson issued a Specie Circular which required the public to buy things with metallic or hard money. -
Biddle's Response
Biddle called in his bank loans. He wanted to show how important the bank was by making a minor financial crisis. In Biddle's panic, many other banks were driven to the wall. -
Jackson's Pet Banks
Because the death of the National Bank of the US, many of Andrew Jackson's banks flooded the country with paper money because the National Bank had gold and silver but was dead. -
Speculative Boom
The currency later became unreliable and Jackson issued a Specie Circular. This was a neck-snapping change in direction that contributed to a financial panic/panic in 1837. -
Crash of 1837
The Specie Circular was one of the causes for the crash of 1837. No use of "Wildcat" currency. This caused the economy to go down and made unemployment rate go up
