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The Election of 1832
In the election of 1832 four people ran for president. Andrew Jackson won the election against Henry Clay. This election mainly had to deal with the issues of the Bank of the United States. Henry Clay was for the Bank charter and Andrew Jackson was against the Bank charter. -
1832 Bank Recharter Bill
Daniel Webster and Henry Clay presented Congress with this bill to renew the charter for the B.U.S. The charter was not going to expire for 4 more years but then they asked to extend it further. The bill went through Congress but was then vetoed by Andrew Jackson. The bank favored the rich and hurt the poor people. -
Jackson's Veto's
About a week after the 1832 Bank Recharter Bill was passed by congress Andrew Jackson vetoed the bill. Jackson said the Bank will receive more privileges and an unfair advantage to the wealthy at the expense of the public. The other parties and citizens of the US did not like this and revolted against him because he wasn't following the constitution. -
Jackson Removes Federal Deposits
The removal of the Federal Deposits was Andrew Jackson's next move against the Second Bank of the US after the veto of the Bank Recharter Bill. -
Biddle Response
Biddle was the president of the Bank of the United States. Biddle's response when Andrew Jackson removed federal deposits was to call in his bank loans hoping to be able to show the bank's importance by making a major financial crisis. This became known as "Biddle's Panic" because he did this to many banks. Jackson was firm with his decision and the bank of the United States began to die out. -
Speculative Boom
A speculative boom is an exaggerated future economic growth or decay. Jackson misuse of the B.U.S. led him to place money from the federal government into his pet banks.This will cause a speculative boom. The other parties didn't like how he was trying to cause a end to the US bank. -
Jackson's Pet Banks
Federal funds were placed in state institutions called pet banks created by Andrew Jackson. Jackson tried to use pet banks to destroy the Second Bank of the United States by trying to stop using federal power over economics. The other parties did not like how he was trying to use pet banks to get what he wanted. -
Specie Circular
It required the purchase of all federal land to be made in coins instead of bank notes. Andrew Jackson made this to protect the economy in case prices go up. Congress did not like this because it caused an economic crisis and will later repeal it. -
The Crash of 1837
The crash of 1837 was an economic disaster. It was caused by inflation from the Specie Circular and the Banking crisis. As a result the bank of the US failed, businesses went bankrupt, and there was widespread unemployment and distress, and many state banks collapsed as well. The two parties were mad at Jackson for the ridiculous changes he made within the US national bank and they blamed the crash of 1837 on him. This lasted from 1837-1843.
