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1832 Bank Recharter Bill
This was a bill that was designed to renew the charter of the Second Bank of the United States of America. President Andrew Jackson, who was usually for the commoners, meaning he is for states rights, vetoed and rejected the renewal of the Bank. The issue was due to if the Bank was constitutional and where the money would come from, which was the platform of the upcoming election. -
Jackson’s Veto’s
Jackson took the advantage of being president and used that power to veto the Bank charter. This really andered his enemies, like Henry Clay, and caught the attention of his supporters. Some people thought he was abusing his power with this action. -
Election of 1832
During this election, Andrew Jackson ran against Henry Clay in a close run. Jackson’s platform focused on getting rid of the National Bank, while Clay’s platform was to support it, the country was divided by the opinions on this matter. Jackson won and was free to deal witht eh bank issue. -
Jackson Removes Federal Deposits
The removal of the deposits was the next step in Jackson’s campaign against the Second Bank of the United States after he vetoed its recharger back in July of 1832. He began taking almost all of the money from the national reserves and gave it out to the states “pet” banks. He did this to get rid of the Bank completely, and ended up taking the country down with him into an economic crisis. -
Biddle Response
Nathaniel Biddle, president of the National Bank, started taking actions in order to recharter the National Bank. He was speaking out against Jackson’s rash actions, and started to gather a large group of people that supported him. They went to Congress, and they voted for the recharter of the National Bank, but Jackson vetoed th decision again. Biddle and his supporters were saying that Jackson was abusing his power of being president. -
Jackson’s Pet Banks
These “Pet Banks” were privately funded little state banks that were brought up by Jackson to attempt to eliminate the Bank of the United States by him depositing federal money to them. This, however, hurt the economy terribly as it destroyed the National Bank. Transferring federal money was done at ten state level. People were learning that there needs to be a National Bank, but it needs to have a balance with state banks; both need to be strong. -
Speculative Boom
This was a side effect to Jackson’s actions towards the Bank. He put the country in a false notion that there was an abundance of money and that the economy was actually growing. So, as this federal money was more accessible to the commmon people, they thought they were becoming richer. This led to a period of overspending and the abusing of money that would lead to an economic crash in 1837. -
Specie Circular
This was another act passed by Andrew Jackson. However, it was carried out by his hand picked successor, President Martin Van Buren. This act made people buy land with gold and silver rather than paper money or Bank notes, which led to the detrimental decline of the value in paper money, all because Jackson believed that land should be bought traditionally. This inflation hurt the economy, especially the south. This change in presidency showed people that the country did need a National Bank. -
The Crash of 1837
This is also known as the “Panic of 1837.” Due to inflation, the falling of the National Bank, and the over spending or the people during that period led to a deep recession of the economy. American goods fell in prices, businesses went bankrupt, and state banks began collapsing because of the lack of national support.
