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Second Bank of the United States
Located in Philadelphia, this bank was chartered for 20 years.
Considered a privately held banking corporation and 20% was owned by the US government. It was created as part of the American System established by Henry Clay. The Second Bank under the American system provided easy credit for the people of the US. The Second Bank was managed poorly by banking president William Jones, who caused panic when he recklessly drew out credit without any collateral and quickly revoked/repealed the credit. -
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The Panic of 1819
The Panic of 1819 had many causes including westward expansion, giving and taking of credit, the creation of more banks, having massive amounts of money printed without any backing, poor management of banks, etc. Resulting in a national depression for a two years, bankruptcies due to lack of money to cover withdrawals, and not getting loans/debts paid back. It caused the prices of land to drastically decrease, citizens were placed in prison for unpaid debt, there was unemployment, etc. -
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Election of 1829 and Veto
Andrew Jackson became president and swore to destroy the Second Bank of the United States. His idea was that the bank was unregulated and that it interfered with the operations of the state banks. He did not give consent to re-chartering the bank. His opponents passed a bill that would have renewed the charter for the bank and Jackson ended up vetoing it, so it was not able to be passed. He ended up taking money out of the Second National Bank of the United States and putting it into Pet banks. -
Re-charter Bill (event added in class- more information originally on Veto event)
See this as a way to beat Jackson. Uses this to alienate the people voting. Wants to recharter the bank before Jackson is elected -
Formation of the Whig Party
They are a new name for the nation republicans. New party -
The Censure of President Jackson
The senate with the direction of Henry Clay tried to question Jackson on his defunding of the Second National Bank and demanded to see papers regarding the re-chartering veto. Jackson refused and called it unconstitutional to search a President in that way and continued with the Pet Banks. He had formal disapproval from Congress. -
Panic of 1837 (added in class)
A lot of people move westward to Texas. Van Buren is blamed for the Panic. A lot of poverty and less printed money. Van Buren lost the election and Harrison becomes president. Tyler becomes president because Harrison died of Phuenmonia(presidency lasted 38 days). -
Election of 1840
The election was between the Whigs (William Henry Harrison+ VP John Tyler) and the Democrats (Martin Van Buren). Harrison had the highest voter turnout to this day. Harrison died in office and his VP John Tyler took over. The national debt had been paid off. It also shaped the two party system and the political parties (whigs and democrats at the time.