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Second Bank
In 1816 a second Bank of the United States, similar to the first, was again chartered for 20 years. From its inception, the second bank was unpopular in the newer states and territories. -
Veto of the Bank Bill
Jackson vetoed a bill calling for an early renewal of the Second Bank’s charter. Jackson said that the bank was Unconstitutional so it was an easy victory for him. -
The election of 1832
Jackson ran against Clay. He mainly focused on getting rid of the national bank, while Clay promised that he would support it. Jackson was re-elected by an overwhelming majority, and that made him act on the bank issue -
End to deposits
In September 1833 Jackson ordered an end to deposits of government money in the bank, and gradual withdrawals of the money already in its custody. The government deposited its funds in selected state banks, characterized as “pet banks” by the opposition. -
Jackson's pet banks
Pet banks were privately funded state banks where Jackson deposited federal money. Although this destroyed the national bank, it still continued. -
Deposit Act of 1836
This act distributed approximately $30 million of the $35 million U.S. Treasury surplus to state banks. This act had ended congressional fights, Western hopes for reduced prices for government land, and benefited old states more than the new. -
End of Bank War
The Censure of Jackson involved a demand to see cabinet papers regarding the re-chartering veto and defunding the Second Bank. Jackson refused and withheld the documents stating that the censure of a President was unconstitutional and continued favoring the Pet Banks. The censure was wiped out in 1837