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The Second National Bank:
After the U.S had its own currency, the Second National Bank was founded. Despite, the fact that many individuals claimed it was confusing because they were so used to utilizing so many various types of money. This demonstrated to the government that the citizens of banks could not be guaranteed a steady supply of currency, which prompted the establishment of the Second National Bank. The usage of single currency at the time confused the states, therefore they disliked this style of banking. -
Election of 1832:
The main political debate in the 1832 election pitted Andrew Jackson against Henry Clay, and it concerned the establishment of a second national bank. Jackson and his supporters wanted to abolish the bank, while Clay wanted to maintain it. Despite Clay's best efforts, Jackson easily defeated Clay and went on to serve a second term. -
Veto of the Bank Bill:
Daniel Webster and Henry Clay had proposed the bill. They also suggested that the Beto be approved by President Jackson so that they might profit from the Second National Bank. Jackson viewed this bill as illegal because it provided many personal rewards and mostly benefited them and other upperclassmen. -
Britain Increases Interest Rates:
Although the Second National Bank was still in existence, most of the states already had the money, and the rest was kept in a separate account from the national bank to prevent the country from becoming bankrupt completely. This money was locked up for safety to make sure it was not lost, even though it could have been utilized to improve the bank and the state of the American economy. The individual treasury system was thus developed. -
Panic of 1837
The price of goods increased and cotton's profit was cut in half, which caused the southerners to lose money and caused many Americans to be fired or laid off, which resulted in many Americans living on the streets without homes or enough money to buy food. As a result, the economy was severely affected. -
Second National Bank downfall:
With this charter's expiration, the "Bank War" was concluded. The Bank Bill, which was meant to renew the 2nd National Bank, had been vetoed by Jackson. They were attempting to reauthorize the Bank Bill even though it had not yet expired because they still had until 1836 before the original bill's expiration. The Panic of 1837 resulted from this.