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1832 Bank Recharter Bill
Daniel Webster and Henry Clay wanted Congress to renew the chart for the Bank of the United State four years early. Clay thought that by trying to push the renewal it would create an election issue in 1832. If Jackson did sign it, it would compromise his worship to his western follower. It he did not sign, which was most likely. Clay hoped that Jackson could lose the next presidential election because this would divide the wealth influential, groups to the East. -
Jackson's Veto
After Jackson veto the bank recharter, he then demanded the bank to be unconstitutional despite the Supreme court decision in the court case McCullough vs Maryland (the bank was constitutional). Jackson believed that the bill was harmful to the nation and therefore, was not violating the Constitution. He also did not like that there was no one to keep an on the bank and believe it had too much power. This veto not only destroyed the bank bill, but boosted the power of the president. -
Election of 1832
Jackson was running for his second term of in office and Henry Clay was running for his first. This election year was the first year that third party enter the election, the Anti-masonic party. Jackson was still able to come out on top even thought his and Clay's platforms varied. -
Speculative Boom
Speculative boom is when the economy looks to growing when in reality it is really not. There was an amount of overseeing because people thought that when the money was moved to state banks, they could be richer. This would be one step closer to the crash of 1837. -
Biddle's Response
In Biddle’s final attempt to save the bank, he called in his bank’s loans hoping that it would show how important the bank during ”Biddle’s Panic.” Unfortunately, Biddle's attempt did not work and Jackson's decision. -
Jackson Removed Federal Deposits
In 1833, Jackson decided to wipe out the national bank for good by removing federal deposits and no more depositing fund with Biddle. By doing this Jackson was able to watch the bank slow bleed dry. However, his close advisers disapproved of the ideas and possible unconstitutional. Jackson was forced to reorganize his cabinet twice before he could find a Treasury that could see his vision. -
Jackson’s Pet Banks
As of October 1, 1833, Jackson announced that federal fund would not longer be place in the Bank of the United States, but instead be place privately funded state banks known as “pet bank” or “wildcat” banks. This was the last straw into destroying the Bank of the United States. By the end of 1833, there were 23 pet banks that were chosen. -
Specie Circular
The money that was coming from the pet banks was becoming unreliable especially in the West. Jackson ordered his Treasury to authorities the Specie Circular. This meant that in order to purchase land, the payment had to be made with gold or silver instead of paper money or banknotes. This would led to the financial panic and crash of 1837. However on May 21, 1838 Congress would repeal the specie circular. -
Crash of 1837
The crash of 1837 was the inflation and the fall of the national bank. This was the biggest depression to hit the young country. This caused the rise of American goods to fall, business began to go bankrupt, and the state banks were also beginning to struggle. The crash lasted from 1837 to 1843. Jackson decide poor economic decisions were left for the new president Van Buren to clean up.
