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2nd Bank of the U.S. Chartered
In April 1816, a second U.S. national bank was chartered for 20 years. It was needed after the War of 1812 and the government realized that the economy was starting to fall apart. This bank was "unpopular" in some states as they disliked its political influence or the fact that it would hold so much power over the country's currency and credit. The 2nd national bank would over time build the economy back together. -
Panic of 1819
The Panic of 1819 was the country's first financial depression that had a major effect. This is another moment where political parties are enhanced/create more political differences. Unemployment increased, banks failed, and agriculture/crop prices were cut in half as well. To improve or to give the country slight relief, the Land Act of 1820 was created lowering the price of land. From $1.64 per acre for a minimum of 80 acres to $1.25 per acre for a minimum of 160 acres. -
Recharting the 2nd Bank of the U.S.
Henry Clay and other National Republicans in Congress passed a bill recharting the Second Bank of the U.S. This charter wouldn't expire until 1836 but Clay and Daniel Webster wanted Jackson to take a side of being for or against the bank. Jackson vetoed the bill as he declared that the bank was "unauthorized by the Constitution" and "dangerous to the liberties of the people". -
Election of 1832
When Jackson vetoed the bill, some points from his message were that the bank only benefited the wealthy. As he stated "rich men...richer by act of Congress." Henry Clay tried to bring back people's attention to his veto but it was quickly dismissed. Any effort to override the veto was not successful as well. Jackson's message was a reflection of the citizens' ideas. -
Diverting National Bank Funds
During the presidential election, a new division was discovered. Jacksonians called the bank a "monster", later Jackson would demand an end to government deposits. The government would later deposit funds into selected state banks(known as "pet" banks). Some people believed that the absence of the bank would open more business opportunities. He actually hated all banks and prohibited paying for public lands in anything but gold and silver. -
Whigs
Jackson's political opponents had come together creating a political party called "the Whigs". It's a British term representing resistance to Jackson's "monarchial rule". Some well-known party members include Henry Clay and Daniel Webster. This was developed after the election campaign of 1832, they slowly set aside their differences and created their program. They had lost the 1836 election as they were too divided to join behind one man. -
The Specie Circular of 1836
As mentioned before, Andrew Jackson hated banks and essentially created a new payment system with only gold and silver(hard money). The Specie Circular of 1836 was issued by the treasury department of the government. This required all payments for public lands to be in gold or silver. -
The Panic of 1837
The Panic of 1837 was an economic depression that took place during Martin Van's presidency term(started around March). Cotton prices were cut in half, 50,000 people lost jobs, and mobs and riots started to take place. This would not be resolved until mid-1840s. -
The Election of 1840
This election was between Martin Van Buren and William Henry Harrison. Van Buren was a Democrat candidate while Harrison was the candidate from the Whigs political party. During Van Buren's first presidency term, his actions displayed a lack of leadership as he refused to provide government aid to businesses. Harrison was known as a war hero as he had won the election. -
Martin Van Buren Banking System
Martin Van Buren was Jackson's "hand-picked successor". He held a strong belief in the principle of limited government. During the Panic of 1837, he refused to provide government aid but he was also fearful that the federal government might lose their funds in private banks. Therefore, he was able to persuade Congress to create an independent treasury system. In this case, federal funds were locked up in "subtreasuries", this system later on deprived others of receiving aid.