Jackson and The 2nd National Bank

By wendytoogood

  • First National Bank

    In 1791, the First National Bank was chartered and supported by Hamilton. He believed in a strong national government and though that the bank could help stabilize the economy. However, Thomas Jefferson opposed it because he believed in central state power and thought the economy should rely on agriculture. This bank chartered through a 20-year period.

  • End of Chartering of First National Bank

    In 1811, people who believed in Jefferson's ideals, Jeffersonians, gained control of Congress and ended the re-chartering of the First National Bank. Jefferson opposed the National Bank as seen in the earlier event.

  • Chartering of Second National Bank

    In 1816, the chartering of the Second National Bank for a 20-year period again was issued by Congress due to financial problems where a rise in inflation and the national debt was present. Due to this charter, the bank managed the U.S. government finances by operating as a commercial bank making loans to businesses, and controlling the national currency. This charter was not popular among new states and bankers.
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    Problems with the Second National Bank

    Throughout 1816-1819, it was seen that the bank was involved in fraud and questionable activities that presumed to an economic bubble. Due to its calling in of loans, it initiated a panic.

  • Jackson's Veto Message

    In July 1832, Jackson vetoed the bill that wanted to recharted the Second Bank by stating it was incompatible with the Constitution despite his belief that a bank was convenient and useful.

  • Election of 1832

    A bill to recharter the Bank was passed by both houses in Congress and supported heavily by Biddle. However, it was vetoed by Andrew Jackson. Since this was the reelection bid between Biddle and Clay versus Jackson, they believed Jackson would be forced to sign for the recharter bill. In the end, Congress did not overturn the veto, and Jackson was elected yet again.

  • Jackson's withdrawn funds

    In 1833, Andrew Jackson withdrew funds from the Bank by the government. This was a strategy to demise the Bank.