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1832 Bank Recharter Bill
The charter of the national bank was up for renewal and Congress agreed to pass the charter. However, President Jackson went above Congress and vetoed the charter due to his belief/support in state banks. This angered the Whig Party because they deemed it unconstitutional. -
Jackson's Veto's
In 1832 Jackson vetoed the recharter of the bank which angered his enemies (The Whig Party). It angered them because not only did they support the national bank, it showed that Jackson thought of himself as higher than Congress. The Whigs wouldn't like this because they favored a strong legislative branch and a weak executive branch, this was showing a weak legislative branch and a strong executive. -
Election of 1832
In this election the two candidates were Andrew Jackson and Henry Clay. Jackson was running so that he could get rid of the national bank while Clay was running so that he could keep it in tact. Jackson ended up winning the election with a majority of the votes, this ultimately foreshadowed the banks demise. -
Jackson Removes Federal
Jackson took federal deposits out of the national bank and transferred them into state banks often referred to as "pet banks". This depletion of the National Bank also caused the country to go into an economic crisis. This angered Nathaniel Biddle and Henry Clay, both supporters of the national bank. -
Biddle Response
Nathaniel Biddle was the President of the National Bank so he was clearly angered when Jackson attempted to destroy it. He proved to the Senate that Jackson had been abusing his power and his actions were unconstitutional. -
Jackson's Pet Bank
Pet Banks were state banks that Jackson would transfer the federal money he had taken out of the national bank. The large amounts of transferred money severely damaged the economy but also showed the country that there needed to be a balance between state and national government. -
Speculative Boom
The speculative boom was a period when the economy was in a positive state and there was a surplus of money, but really there wasn't. In response to this people began overspend their money which lead to an economic crash in the year 1837. -
Specie Circular
This was an act that was originally created by President Jackson but it was carried out by Van Buren after he got into office. The act basically stated that instead of paying for land in money it had to be paid with either gold or silver. In response to this the economy began declining because the value of paper money decreased. The southern population grew angry with Van Buren instead of Jackson because this happened during his term. -
Crash of 1837
One of the main reasons behind the crash of 1837 was the speculative boom 4 years prior. During the crash businesses went bankrupt, the price of goods decreased and the state banks began collapsing. This sent everyone into a fit of hysteria and worry.
