Panic of 1837

Jackson Vetoes the Renewal of the Second B.U.S.

Jul 10, 1832

In 1832, the National Republicans in Congress led by Henry Clay passed a bill re-chartering the Second Bank for another 20 years. Since it was a presidential election year, the National Republicans did not believe that Jackson would risk losing re-election by vetoing the bill. But to their shock, Jackson did exactly that. http://www.civil-liberties.com/cases/bankveto.html

Jackson Orders the Pulling of Government Funds from the Second B.U.S. to be Deposited in State "Pet Banks"

Sep 1, 1833

Jackson did not wait for the expiration of the bank's charter but in 1833, deposited government moneys in state banks, referred to by his opponents as “pet banks.” http://www.pinzler.com/ushistory/timeline4.html

Nicholas Biddle Demanded that Old Loans be Repaid and No New Loans

Sep 7, 1833

Nicholas Biddle, desperate to save his bank, called in all of his loans and closed the bank to new loans. http://en.wikipedia.org/wiki/Second_Bank_of_the_United_States

Jackson Censured by the Senate for Putting Federal Funds in State Banks

Mar 28, 1834

In December 1833, the National Republican majority in the Senate demanded that Jackson surrender documents related to removing deposits from the Bank. When Jackson refused, Henry Clay issued a censure resolution. http://www.history.com/videos/jackson-censured-in-bank-war

Specie Circular - Must Use Gold/Silver to Buy Land

Jul 11, 1836

The Specie Circular was an executive order issued by U.S. President Andrew Jackson in 1836 and carried out by President Martin Van Buren. http://www.britannica.com/EBchecked/topic/558645/Specie-Circular

State Banks Begin to Accept Payment Only in Specie

Aug 15, 1836

Jackson directed the Treasury Department, “pet” banks, and other receivers of public money to accept only specie as payment for government-owned land after Aug. 15, 1836. http://www.publicbookshelf.com/public_html/The_Great_Republic_By_the_Master_Historians_Vol_III/thepanic_ce.html

Martin Van Buren Takes Office

Mar 4, 1837

He was blamed for the economic depression. http://www.whitehouse.gov/about/presidents/martinvanburen

Banks Run Out of Gold/Silver and the Government Cannot Get any Money

May 10, 1837

The end of the Second Bank of the United States had produced a period of runaway inflation, but on May 10, 1837 in New York City, every bank began to accept payment only in specie, forcing a dramatic, deflationary backlash. http://www.ohiohistorycentral.org/entry.php?rec=1431

Second Bank of the United States Officially Closes and Goes Out of Business

Jan 1, 1841

The Second Bank of the United States was left with little money and, in 1836, its charter expired and it turned into an ordinary bank. Five years later, the former Second Bank of the United States went bankrupt. http://www.cr.nps.gov/history/online_books/butowsky2/constitution7.htm

William H. Harrison and the Whig Party Take control

Mar 4, 1841

William Henry Harrison takes office, but shortly dies after his inaguration. http://www.whitehouse.gov/about/presidents/williamhenryharrison