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Charter of the 2nd Bank of the United States
Following the War of 1812, due to the economic issues, the Second Bank was chartered for a 20-year period. This meant it became the central bank at the time and was responsible for regulating the nations money supply. -
Election of Andrew Jackson
In 1828, Andrew Jackson was elected as 7th president of the United States. Jackson heavily distrusted the bank and bank institutions. Jackson believed the bank was a threat to the common people since it was seen as a tool for the wealthy elite. -
Veto of Bank Recharter
Henry Clay, proposed for the Second Bank to be rechartered since he heavily advocated for the bank. The bill then passed through the government to be vetoed by Jackson. -
Removal of Bank Deposits
In 1833, Jackson had the federal deposits from the Second Bank removed and moved over to the state chartered banks ("pet banks"). This decision weakened the ability of the Second Bank to control the money supply of the nation. -
Expiration of the Second Banks Charter
The 20-year charter of the Second Bank finally expired in 1836, allowing it to officially become state chartered in Pennsylvania, losing its federal status. -
Economic Panic
In result to the expiration of the banks charter and Jackson's removal of deposits, there was a considerable economic panic. Many blamed Jackson for their economical struggles and used these accusations against him. -
Election of William Henry Harrison
William Henry Harrison, a supporter to the Bank of the United States, was elected as 9th president. This caused a there to be a shift from Jackson's policies, since they have opposite views on the bank.