Bank War

By csanchez0051

  • Bank Recharter Bill

    Both Henry Clay and Daniel Webster wanted the National Bank to be recharted. They took it to Congress and convinced them to recharter it. The bill passed through Congress, but President Jackson was not happy about it.

  • Jackson's Veto

    After the recharter bill was passed by Congress, Jackson vetoed the bill. He did it because the bank was not constitutional and that it was a monopoly that only served the rich men. Jackson also said that the bank was in the hands of the wealthy and foreigners; it wasn't held by the people.

  • Election of 1832

    In this election, in the midst of the nullification crisis, Andrew Jackson, part of the Democratic Party, was reelected. Henry Clay, part of the National Republican Party, lost against him. The national bank divided the two parties because Jackson wanted to get rid of the bank while Clay wanted to keep it.

  • The Removal of Federal Deposits

    With this order, Jackson said that federal funds weren't going to be deposited in the national bank. This ultimately made the national bank useless because Jackson had the money deposited into state banks.

  • Pet Banks

    After Jackson had ordered that the money deposits, by the government, weren't to be put in the bank, the government deposited their money in state banks. The banks would be known as "pet banks;" people who opposed it called them that.

  • Specie Circular

    Although it was issued by Andrew Jackson, Martin Van Buren was the one that executed the order; he won the election of 1836. The whole point of the Specie Circular was that public land had to be bought with gold or silver; aka specie. The government didn't want land to be bought with paper money. After the order was put through, the sale of public lands went down.

  • Election of 1836

    Martin Van Buren, Vice President of Andrew Jackson, won the election of 1836. The Whig Party, formed after the election of 1832, lost to Van Buren because they could not decide who they would unite behind.

  • Panic of 1837

    After Jackson had issued the Specie Circular, the state banks crashed. Apart from that, the national banks failed, the price of cotton dropped, and bankruptcy and unemployment ensued.